Missouri grants help metalcasters, supplier establish new facilities, add jobs.

With assistance from the state of Missouri, Fairfield Aluminum Co. (FALCO), Fairfield, Iowa, and Lakeside Casting, Monroe City, Mo., are in the process of establishing new facilities for their metalcasting operations.

In the second half of 2004, the Missouri Dept. of Economic Development (MODED) approved several grants through the Community Development Block Grant (CDBG) program that in turn assisted two metalcasting firms.

MODED approved a $600,000 grant for the town of Clarence, Mo., which had a vacant 100,000-sq.-ft. industrial facility available for purchase.

FALCO was looking to expand its post-casting operations due to increases in sales and had investigated several possible sites in Iowa. But with the grant, FALCO could renovate the Clarence facility and establish a heat treating furnace.

As a result, FALCO invested $2.5 million to create a second plant for heat-treating and machining permanent mold and sand cast aluminum diesel components for firms, such as Caterpillar, Peoria, Ill., and Ford Motor Co., Dearborn, Mich.

The project began late last year and is expected to create 70 full-time jobs within two years. FALCO will maintain its casting and machining operations in Fairfield, as well.

Lakeside also benefited from MODED grants after $240,000 was rationed for Monroe City.

The zinc diecaster had a five-year open lease on a 3,200sq.-ft, facility and is nearing its third year for the lease. In search of obtaining a new plant, Lakeside is using a portion of the grant and investing $762,500 for the construction of a 10,000-sq.-ft. greenfield facility. This project commenced early in the winter and completion is expected in the spring. It will create 21 new jobs to work the diecasting or finishing operations for Lakeside, which produces components for the automotive and telecommunications industries.

Further, Lakeside's die supplier, Arrow Tool & Die is building a new facility adjacent to Lakeside's in Monroe City. Arrow, which supplies tooling and die material to metalcasters, currently operates in a 1A00-sq.-ft. facility, but when the new plant is complete, it will have 5,000 sq. ft. of operating space. The company is using the other portion of the Monroe City Rinds. Arrow is investing $128,000 and plans to add three new jobs. This facility should be completed this summer.

The funds for CDBG are provided through federal sources and administered by the state of Missouri. These Rinds will be released to Clarence and Monroe City as certain program requirements are met. The CDBG program provides economic development grants and loan funds to cities with a population of less than 50,000 and counties of less than 200,000 residents.