A groundbreaking ceremony is set for Wednesday, Sept. 6 for the new Sub-Zero manufacturing facility in southwest Cedar Rapids.
The Sub-Zero groundbreaking is set to begin at 10:30 a.m.
Sub-Zero, headquartered in Madison, Wisconsin, is building a $140.6 million, 400,000-square-foot manufacturing facility at 10015 Sixth St. SW, just south of 7G Distributing and about a mile east of the Eastern Iowa Airport.
The project investment is planned to include $90 million in real property and improvements and $50.6 million in machinery and equipment.
Sub-Zero manufactures refrigerators and other appliances for home and commercial use under the Sub-Zero, Wolf and Cove brands.
“We have reached the point that our three main sites are burgeoning and full, so we are seeking a new location to add to our footprint for the next leg of our journey,” said Scott Wareing, senior vice president of operations and product design for Sub-Zero, during a presentation to the Cedar Rapids City Council. “It’s just a phenomenal fit for us and you.”
Ron Corbett, vice president of economic development for the Cedar Rapids Metro Economic Alliance, said a site selection consultant working for Sub-Zero reached out to state economic development officials in the fourth quarter of 2021 with a Request for Information (RFI) on possible development sites in Iowa.
In response, Cedar Rapids officials submitted several sites in Cedar Rapids for consideration, Mr. Corbett said.
“There were several visits by the company and the consultant group, where we had a chance to sell the assets of our community,” he said. “Thankfully, they chose Cedar Rapids, and we’re happy to celebrate this great success.”
Bringing Sub-Zero to Cedar Rapids was described as a “collaborative effort” between the Iowa Economic Development Authority, Cedar Rapids Metro Economic Alliance, Alliant Energy and Kirkwood Community College, Cedar Rapids Economic Development Manager Caleb Mason said.
The project is expected to create positions for 192 new full-time employees, 127 of which will be paid at or above the state’s current high-quality wage rate of $24.20 per hour. The state requires those jobs to be filled by December 2026.
The Iowa Economic Development Authority unanimously approved Sub-Zero Group Inc.’s financial incentive package in June 2022, clearing the way for the new facility’s construction.
“So many people are involved in an effort like this,” said Doug Neumann, executive director at the Cedar Rapids Metro Economic Alliance, in a statement. “It demonstrates again the importance of constantly pursuing business attraction and business expansion projects to keep our economy marching forward.”
After the Sub-Zero groundbreaking, the new plant is projected to be completed by August 2025.
