Serving Gogebic, Iron and Ontonagon Counties
Serving Gogebic, Iron and Ontonagon Counties
THE FORMER speculation building in the Ironwood Industrial Park will be used for a Waupaca Foundry expansion business.
By RALPH ANSAMI
Ironwood - Waupaca Foundry, Inc., a manufacturer of high-quality cast and machined iron components for the transportation and industrial markets, plans to expand into Ironwood.
The Michigan Economic Development Corporation said Tuesday the project is expected to generate total private investment of $4.3 million and create 61 jobs. Michigan was chosen over competing sites in Arkansas and Wisconsin, MEDC said.
Ironwood Community Development Director Tom Bergman said the company will locate in the former speculation building on Liberty Street in the Ironwood Industrial Park. The building had been sold to and recently used by Scandinavian Log Homes. It's directly across the street from the Xcel Energy facility.
"MEDC has been the big driver," Bergman said, adding the Waupaca company has worked directly with MEDC.
He said the company would likely expand the size of the building.
Bergman said discussions with the city have been going on for the past four months.
"Waupaca Foundry's decision to establish a facility in Ironwood is great news for Gogebic County and will mean good jobs for many of the talented workers in the region," said Gov. Rick Snyder.
Waupaca Foundry, established in 1955, is headquartered in Waupaca, Wis. The company was purchased in 2014 by Hitachi Metals Group and has more than 4,500 employees at seven locations in the U.S. It needs to expand to process castings, including cleaning and finishing, as a means to meet increasing demand in a location where there is sufficient labor supply.
The company has been awarded a $1.2 million Michigan Business Development Program performance-based grant. The city of Ironwood is considering a 12-year property tax abatement valued at $375,000 in support of the project.
"The economy is strong and Waupaca Foundry is growing due to increased customer demand for cast and machined iron castings. Opening a facility to handle cleaning and finishing of cast parts will allow us to meet customers' expectations in quality and delivery of their parts," said Waupaca Foundry Executive Vice President John Wiesbrock.
MEDC noted area leaders continue to look for innovative ways to strengthen the region's economic base following the closure of the Ojibway Correctional Facility in Marenisco in December.
Prior to choosing a new location, Waupaca conducted exploratory job fairs in Marenisco and Ironwood and identified a "strong pool of motived, highly talented workers in the Ironwood region," MEDC said.
"Like many employers across the nation, Waupaca Foundry is finding ways to overcome low unemployment and a shortage of skilled workers," said President, COO and CEO Mike Nikolai. "There simply are not enough workers to fill the open positions we have, so we explored expansion in regions that had a solid base of talented workers."
"Waupaca's expansion here rather than in other states underscores the strength of our business environment and talented workforce," said Jeff Mason, CEO of MEDC.
"We're pleased to work with our local partners and support this investment, which will provide good employment opportunities for area residents and will create a long-term positive impact on the local economy. We look forward to working with the company as it continues to grow and add jobs in Michigan," Mason said.
People interested in careers with Waupaca should visit jobs.waupacafoundry.com.
