MUSCATINE, Iowa - HNI's latest expansion and renovation plans continue to move forward, with the office furniture giant being granted tax benefits on the estimated $17.8 million capital investment. This project is in addition to the $30 million expansion and renovation already underway at another HNI facility.
HNI was granted $579,523 in tax benefits by the Iowa Economic Development Authority under the state's High Quality Jobs Creation program. The upgrade to several of the company's Muscatine facilities is expected to retain 175 jobs at $17.60 per hour. Included in the three-year modernization plan are upgrades to machinery and the installations which will increase the furniture and fireplace manufacturer's capacity. The project is expected to start in early 2016.
HNI (NYSE: HNI) noted in its HQJC application that while upgrades to the production "will likely eliminate some positions from the current footprint," the loss of those jobs will be partially offset by job relocations to Iowa once HNI closes a leased warehouse facility in Illinois, reports the Quad City Times.
A separate expansion and renovation project already underway to improve capacity at a laminate facility and house a product development center and testing lab should be completed this year. HNI noted that the project investment has exceeded $30 million.
Considered the second largest office furniture manufacturer in the world and the largest producer of fireplaces, HNI's brands include: Allsteel, HON, Gunlocke, Lamex, Paoli, Heatilator, Heat & Glo and Quadra-Fire.
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