AgSugar International Inc. has applied for state and local funds to assist with the proposed construction of a manufacturing facility, data center and executive office at 1129 Wenig Rd. NE in Cedar Rapids.
AgSugar is an industrial biotechnology company specializing in the manufacture of equipment for bio-based materials. The proposed manufacturing facility would develop Cellulose Conversion Modules – equipment that can convert cellulose to soluble sugars pure enough for fermentation at a much lower cost than currently available.
“We are extremely pleased that AgSugar has chosen Cedar Rapids as the location to launch their business,” said Cedar Rapids Mayor Ron Corbett. “Our city is committed to creating an environment that helps new companies and entrepreneurs grow and thrive.”
The project represents $1.4 million in capital investment, and will create 24 jobs over the next three years.
“Our region continues to be a leader in both biotechnology and advanced manufacturing,” said Dee Baird, president of Priority One. “AgSugar fits well in to our existing cluster of innovative and cutting-edge firms.”
“Cedar Rapids provides AgSugar with unparalleled benefits for its manufacturing and training facility” said Dan Kazanas, COO of AgSugar. “Cedar Rapids has an educated workforce; resourceful local vendors; and synergy opportunities for AgSugar with stalwart businesses in the Eastern Iowa area already involved in biobased products.”
The project is contingent upon formal approval of state and local incentives, including tax credits, job training and indirect financing. Priority One is assisting AgSugar with the application process.