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Iowa’s Sausage Production Gets Major Boost with JBS Investment
economy after Tyson's closure.">
Perry, Iowa is set to become a hub for sausage production, thanks to a significant investment by JBS USA Food Co. The Iowa Economic Development Authority (IEDA) has approved over $12 million in assistance to facilitate the construction of a new sausage factory,creating over 300 jobs and injecting new life into the local economy.
State Backs New Sausage Production Facility
The IEDA board’s recent vote approved $9.45 million in investment tax credits and $2.60 million in sales and use tax credits for JBS USA.This financial backing supports JBS’s $135 million investment in a 150,000-square-foot facility in Perry. this project comes roughly a year after the Tyson plant shut down, resulting in 1,300 layoffs.
According to IEDA documents, JBS USA specializes in processing, preparing, and packaging fresh sausage under various brands. The company’s global reach extends to 15 countries, employing over 150,000 people and supplying products to over 100 countries.
Job Creation and Economic Impact
The new facility is projected to create 250 jobs in Perry within the first three years of operation, with an additional 70 jobs expected in subsequent years. A significant portion of these positions, 57 in total, will offer a competitive wage of $31.10 per hour.
The city of Perry is also contributing to the project through a 10-year tax increment finance rebate valued at $10 million, demonstrating the local government’s commitment to fostering economic growth.
Construction on the Perry facility is slated to begin before the end of this year, with completion anticipated by November 2026.
Did you Know? Iowa’s meat processing industry contributes billions to the state’s economy annually, supporting thousands of jobs across the state. (Source: Iowa State University Extension and Outreach)
Community Leaders Celebrate Investment
Perry’s City Administrator, Sven Peterson, expressed his excitement, stating that the JBS declaration is a welcome highlight for the community. he noted the unlikelihood of such positive news occurring so soon after the Tyson closure.
debi Durham, Director of IEDA, praised Perry’s leadership and emphasized the importance of JBS being a responsible corporate citizen. Governor Kim Reynolds echoed this sentiment, calling JBS’s announcement “tremendous news” for Perry and the entire state, highlighting the renewed hope and opportunity for local families.
Wesley Batista Filho,CEO of JBS USA,affirmed the company’s commitment to Iowa and its workforce. He expressed gratitude for the state’s support and looked forward to being part of the Perry community.
Other IEDA Board Actions
in addition to the JBS project, the IEDA board approved other significant investments across Iowa:
- ITA Group (West Des Moines): Approved $119,750 in tax credits for a 15,000-square-foot expansion at 7000 Vista Drive. The expansion will create 33 jobs, with 25 paying $36.80 per hour. Construction is expected to begin in July and be completed in November, representing an investment of over $2.4 million.
- Merchants Bonding Co. (West Des Moines): Approved over $878,000 in tax credits for a 34,000-square-foot expansion at its headquarters at 6700 Westown Parkway.This expansion will create 34 jobs, with 18 paying $36.80 per hour. The city of West Des Moines will provide a five-year tax increment finance package valued at $800,000. Construction is expected to be finished by february 2027.
These investments underscore Iowa’s commitment to fostering economic development and creating job opportunities throughout the state.
Iowa Economic Development Projects: A Summary
| Company | Location | Project | IEDA Assistance | Jobs Created | Completion date (Expected) |
|---|---|---|---|---|---|
| JBS USA Food Co. | Perry, IA | New Sausage Factory | $12.05 Million (Tax Credits) | 320 | November 2026 |
| ITA Group | West Des Moines, IA | Building Expansion | $119,750 (Tax Credits) | 33 | November 2025 |
| Merchants Bonding Co. | West Des Moines,IA | Headquarters Expansion | $878,000 (Tax Credits) | 34 | February 2027 |
