Wind blade manufacturer TPI Composites says it will reopen its Iowa plant that employed as many as 700 people before the Arizona manufacturer closed the facility last year. It could take time, however, for the jobs to materialize.

TPI Composites said it signed a 10-year lease agreement to again use its Newton manufacturing plant after reaching an agreement with GE Renewable Energy to supply blades to the wind turbine manufacturer in the United States.

"We're really pleased," said Frank Liebl, the Newton Development Corp., adding that he hopes the Scottsdale company will fully restore its 700-employee workforce. TPI, which manufactured wind blades for GE in Iowa from 2008 to 2021, was once Jasper County's largest private employer.

Renewable energy also is important in Iowa, which last year got 58% of its electricity from wind turbines, the highest percentage nationally, according to the U.S. Energy Information Administration.

The news came Thursday as the company reported a $1.5 million third-quarter loss and plans to close a plant in China and lay off workers in the U.S. and at other global locations. “We remain confident that the mid- to long-term prospects for wind energy outweigh any near-term challenges today," said TPI CEO Bill Siwek, adding he expects to see increased demand, thanks to the U.S. Inflation Reduction Act and REPowerEU in Europe.

The Inflation Reduction Act, signed into law in August by President Joe Biden, includes long-term renewal of tax credits that encourage renewable energy adoption and offers richer incentives for companies that use wind, solar and other renewable energy production components made in the U.S.

REPowerEU is Europe's plan to cut its reliance on Russia's fossil fuels and adopt renewable energy.

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"Right now, our focus is to best position TPI for the long term while dealing with the near-term challenges,” Siwek said in announcing TPI's earnings. The company said it expected layoffs and plant closings would cost $20 million in the fourth quarter.

It could be months before Newton begins seeing new jobs. TPI said it expected to begin production at the central Iowa plant in 2024.

Liebl said TPI likely needs time to rehire former workers and train new ones. And the company may want to redesign its blades as well as upgrade operations as it brings the plant back online, he said. "Things change over time," he said. "When TPI first started making blades, they were 42 meters long. Now blades are up to 62 meters."

”GE is proud to continue our partnership with TPI in Iowa,” said Vic Abate, CEO of GE Renewable Energy’s Onshore Wind, in a statement. “TPI has a strong history manufacturing blades for GE’s onshore wind turbines, and they have played a key role in helping us to deliver and install our installed base across North America."

TPI said Thursday its sales were $459 million for the quarter ending Sept. 30, 4.2% below a year ago. The $1.5 million loss was less than the $30.7 million loss the same quarter a year earlier. TPI said it had $129 million in cash on hand.

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“While the wind industry continues to face near-term challenges, we are working with our customers to be ready to address their capacity needs when demand comes back to the market," TPI's Siwek said. The company said it had an agreement in principle with GE to extend its lines in Mexico through 2025 and coming global agreements with Vestas, another wind turbine manufacturer.

Liebl said TPI and GE's decade commitment to the plant will be important for workers who consider rejoining the company. And it's key for community support. TPI opened the Newton plant to much fanfare 13 years ago after the community had lost about 1,800 well-paying jobs when Maytag Corp., founded and headquartered in Newton, closed in 2007.

Liebl said several companies were interested in locating in the 335,000-square-foot building that TPI plans to reopen. He hopes to able to find other locations for the businesses and recruit them to Newton.

The Inflation Reduction Act, intended to drive about $370 billion in climate and renewable energy investment, restores and extends investment and production tax credits for wind, solar and other renewable energy production that, in the past, have periodically expired, leading to boom-and-bust cycles for manufacturers in the field. And it provides a 10% tax credit bonus when solar panels, wind turbines and other components come from U.S. factories.

Liebl said he hopes the new law will help Arcosa Inc., a Texas company that makes wind turbine towers in Newton.

TPI and Arcosa, which occupied a portion of a former Maytag plant, were key to Newton's recovery. They offered hope and a new generation of manufacturing in the central Iowa town that had been almost solely focused for more than a century on building Maytag washers, dryers and other appliances.

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Already, Iowa utilities have announced large renewable projects. Des Moines-based MidAmerican Energy, the state's largest investor-owned utility, proposed investing $3.9 billion in new wind, solar and other renewable energy research and development.

The company's Wind Prime initiative calls for building nearly 2,100 megawatts of new wind and solar generation capacity. A spokeswoman for the Berkshire Hathaway company said it hoped to partner with suppliers that were able "to source components that are made locally."

For Liebl, TPI's announcement makes for a brighter economic outlook for the community. "Christmas came early," he said.

Donnelle Eller covers agriculture, the environment and energy for the Register. Reach her at deller@registermedia.com or 515-284-8457. 

This article originally appeared on Des Moines Register: TPI plans to reopen Newton wind blade plant, signing a 10-year lease