DUBUQUE, Iowa - After announcing it would leave Iowa last year, Flexsteel Industries Inc., one of the nation's leading upholstery and furniture manufacturers, has changed its mind.
 
The change comes after the state of Iowa stepped in and offered the residential furniture giant a $10 million incentive package. Flexsteel chose to stay and begin construction on a more modern facility - retaining 200 jobs that would have been lost.
 
Last Friday, the Iowa Economic Development Authority board approved a $2.1 million incentive package for Flexsteel, which includes a $1 million forgivable loan and more than $1 million in tax credits and refunds. Iowa will also give $8 million in local incentives.
 

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Flexsteel furniture to shut down Iowa plant, 250 face layoffs

Flexsteel Industries will close a manufacturing facility in Dubuque that employs 250 at the end of 2017.


The company will invest $25 million of its own money in the plant. Construction began this week.

“Flexsteel is pleased to continue manufacturing in Dubuque, a progressive community where our strong workforce delivers great results to our customers every day,” said Flexsteel President and CEO, Karel Czanderna, in a press release. “We look forward to continued success at our new facility and will look back with fondness to Jackson Street, which we called home for over 80 years.”
 
Last year, Flexsteel announced it would close its current facility by the end of 2017. The facility, dating back to 1897, has become inefficient for manufacturing and costly to maintain, says the company. 
 
Construction of the new facility is set to be complete in late 2018.
 
Flexsteel Industries is the seventh largest residential furniture manufacturer on the FDMC 300. Its main manufacturing location is in Dubuque, with five other plants throughout the United States and Mexico. Its sales were an estimated $467 million in 2015. Flexsteel employs around 1,400 workers.