Progress Casting Group to expand production to permanent mold casting facility in Iowa.

With the decision to add capacity to support growth opportunities in its marketplace, Progress Casting Group Inc., Plymouth, Minn., will expand its aluminum casting operations to a new facility in New Hampton, Iowa.

The company plans to construct an 85,000-sq.-ft. plant with the potential to increase to 180,000 sq. ft. within five years. The facility will create permanent mold castings for several markets including motorcycle, food, recreational vehicle, marine and aerospace. The plant is expected to open by Jan. 1, 2006. The building cost will be $6 million, and the company will invest up to another $4 million in new equipment. The company signed a development agreement with New Hampton city representatives, and local and state incentives also will help offset some of the initial start-up costs for Progress Casting.

The company had been considering expansion proposals from locations in Minnesota and South Dakota before deciding on the New Hampton site.

"All expansion proposals that we considered were very aggressive in promoting themselves and providing incentives," said Robert Silhacek, president. "Our decision was difficult, but in the end, along with the available labor, the overall package in New Hampton was too good to pass up."

According to Gary Obele, vice president of administration, the initial expansion would create up to 150 new jobs in New Hampton, the surrounding communities, and the state of Iowa within a three-year period.

"We will have a very competitive wage and benefit program and look forward to hiring a hard working, productive workforce from the area and surrounding communities," he said. "Our initial job studies indicate a lot of interest in the company."