International plastics manufacturer to add training facility in Iowa City

Austrian-based company Alpla, Inc. has plans to develop a training facility in Iowa City to support its new apprenticeship program. Alpla is a plastic fabrication company and operates 190 facilities in 46 countries, with major clients such as L'oreal, Coca-Cola, Abbot Labs and Proctor & Gamble. Its Iowa City plant, located at 2258 Heinz Rd., employs 231 people. The company plans to invest approximately $12.7 million in new value when it expands its Iowa City plant by constructing a $10 million, 35,256 square foot learning and development facility to boost its newly developed apprenticeship program, which will add 36 new jobs at $30.65 an hour with comprehensive health benefits. To mitigate costs, the company is requesting approval of their Iowa Economic Development Authority High Quality Jobs Program application, which requires a local match. The city voted to support the initiative in the form of a five-year tax break on a portion of the new value created. To secure the local match, Alpla must submit an Industrial Property Tax Exemption Form to the City Assessor by February 1 in the year construction begins. The tax exemption is available to any projects in Iowa City that add value to real property – building and site improvements – that are classified as either an industrial building, warehousing/distribution center, or research-service facility. Alpla's apprenticeship program is a three-year degreed program that will partner with Kirkwood Community College and Industry Consortium for Advanced Technical Training (ICATT), providing exposure to a stable, crisis-proof career in manufacturing that starts with mechatronics and technical training. The program is geared for high school graduates ages 18 and up. "Apprentices will be trained on proprietary equipment from our global German-based company," said Chivvaun Smith, communications and corporate social responsibility manager with Alpla, in an email to the CBJ. "They will have access to our state-of-the-art learning facility, become familiar with our Iowa City plant, culture, and technologies, and preview the endless possibilities available to them within our multi-national, family-owned organization." Apprentices will graduate with an Associate degree and German certificate, and be paid through the duration of the program, added Ms. Smith, and Alpla's plans are to hire 12 apprentices per year. At the Jan. 2 meeting, the Iowa City Council voted to approve the application to the State of Iowa for the High Quality Jobs Program, since it promotes economic development in Iowa City. Not all members of the public welcome the new facility. At the council meeting, Iowa City resident David Sterling expressed his dissatisfaction. “Not only is the city subsidizing a large corporation that made $4 billion in 2022, but it is an investment in a plastics corporation,” he said. “This $12.75 million could instead be invested in jobs that help combat climate change. This could take the form of jobs that research, develop and implement climate-friendly solutions, but could also take the form of jobs that prepare the city for future climate-related events, such as the derecho of 2020. Considering the state cuts to the city budget have affected other spending discussions, this seems like an inappropriate investment on multiple fronts.” Construction on the facility is estimated to begin September 2024, with a completion date of December 2024.