Local 3M warehouse to fund expansion with help from $500,000 IEDA tax credits

Brandon Hurley, Ames Tribune
·2 min read
3M Company in Ames will begin work on a $13.6 million expansion project in January, which will add 25 jobs and new abrasive production equipment. The 3M warehouse is located on Dayton Avenue.
3M Company in Ames will begin work on a $13.6 million expansion project in January, which will add 25 jobs and new abrasive production equipment. The 3M warehouse is located on Dayton Avenue.

Twenty-five new jobs will soon be added to one of Ames' largest workforces.

The local 3M Company, which manufactures a variety of abrasive products, was recently approved for $546,800 in tax credits by the Iowa Economic Development Authority to help support a substantial addition.

The warehouse, located on the eastern edge of Ames, is spearheading a $13.6 million project that will expand the facility to make room for additional abrasive equipment. Building construction will begin in January, with the new equipment − estimated at a cost of more than $10 million − expected to be installed next winter.

3M Company’s headquarters are located in St. Paul, Minnesota, focusing on four main areas: safety and industrial, transportation and electronics, healthcare, and consumer. 3M’s Ames facility specializes in abrasives for industrial automotive repairs.

The local abrasives division also includes metalworking, woodworking, and home improvement.

According to the company website, “3M applies science and innovation to make a real impact by igniting progress and inspiring innovation in lives and communities across the globe.”

The Ames location currently enlists the work of 370 employees. The additional abrasive equipment will be installed in June of next year, with an expected completion date of December 2024. Facility construction will cost roughly $400,000.

The project will create 25 jobs, each with a labor shed wage of $30 per hour.

3M's partnership with the IEDA

The IEDA unanimously approved 3M's request for nearly $600,000 in tax credits, the company's fifth such award from the state, second for the Ames campus. The Knoxville 3M campus has been awarded two tax credits and a forgivable loan. The Ames facility was awarded $2,144 in tax credits for a project in 2018.

The most recent IEDA tax credit will be awarded in five different installments, with the final credit expected in 2027.

Brandon Hurley is the editor of the Ames Tribune and the Iowa City Press-Citizen. He can be reached at bhurley@gannett.com.

This article originally appeared on Ames Tribune: 3M’s $13 million expansion will add 25 jobs