Fairfield Ledger
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Mt. Pleasant News   Wash Journal
Neighbors Growing Together | Sep 21, 2017

Faircast approved for funding from Iowa Economic Development Authority

By Nicole Major, Ledger staff writer | Jul 24, 2017

Iowa Economic Development Authority awarded an $855,000 assistance package to Faircast Inc. Friday. The award included $600,000 in direct financial assistance in the form of a low interest loan, as well as $255,000 in investment tax credits that were granted through the High Quality Jobs Program.

The HQJ program provides assistance to companies creating new jobs and investing in equipment or facilities in Iowa.

“This award will help us catch up with maintenance items that have been neglected,” said Roger Vorhies, president of Faircast Inc. “As we focus on stabilizing the foundry, we also are setting our sights on growing the company back to its previous levels. This assistance will be essential to making that happen.”

Nearly all 221 employees were laid off from Fairfield Casting in late June, after its lender exercised Article 9 foreclosure proceedings. Certain assets were subsequently purchased at auction by Faircast, and production at the foundry resumed July 6. According to a Fairfield Economic Development Association news release, Faircast produces ductile and gray iron green sand castings for the agricultural, rail, construction and automotive industries, and the foundry has been a major Fairfield employer for more than 105 years.

Faircast recently created 89 jobs at its foundry, and the firm plans to make a capital investment totaling $3.2 million.

“We are proud to support the Faircast Inc. foundry project in Fairfield,” said Debi Durham, director of IEDA. “The board understands the importance of supporting local companies and giving them the tools they need to keep operations in the state. Keeping this foundry in Iowa so that it can continue to provide good jobs is important to Iowa’s economy.”

According to IEDA’s website, it administers several state and federal programs to meet its goals of assisting individuals, communities and businesses. The IEDA Board is appointed by the Gov. Kim Reynolds, and acts on administrative rules, approvals to contract, applications for state incentive programs, among other items.

Faircast worked through the Fairfield Economic Development Association on the application process to obtain the award from IEDA.

“The Faircast management has been highly responsive,” said Joshua Laraby, FEDA executive director. “Because of this, FEDA was able to assist Faircast in receiving this $855,000 incentive package. FEDA’s foundation of facilitating growth in Fairfield is through business and land development initiatives. We were able to provide assistance with three large ticket items on this project.”

Laraby said what Faircast has accomplished so far is “good for Fairfield.”

“A temporarily unused facility was brought back into productivity with planned improvements,” he said. “High quality jobs were created, and state level incentives were secured.”

Although the award is approved, it has not been dispersed, and is pending a final agreement with Faircast Inc.

 

 

 

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