The University of Iowa offers its Technology Innovation Center (TIC), a business incubator that fosters the development of advanced technology ventures.

Startup company Ramaanchar Technologies recently located in TIC. The company focuses on custom software application development. It is the 74th technology-based business venture admitted to TIC since the incubator was established in 1984. TIC is currently home to 16 companies.

Twenty-six TIC “graduate” firms have expanded their businesses or met other business goals after leaving the incubator, and a half-dozen other companies remained in business after leaving TIC.

All have the option of relocating to Oakdale Research Park, which provides access to UI research resources and UI faculty scientists, physicians and engineers.

Turning to state government, the Iowa Department of Economic Development’s (IDED) Iowa Values Fund Board is trying to save the jobs of 1,100 workers at the Lennox International plant in Marshalltown by providing $6.6 million in assistance to the company.

Of the money, $1.6 million will be used to train Lennox workers in advanced manufacturing to make the company’s operations more competitive for further investment.

The remaining funding, $5 million, is a forgivable loan to help pay for an $18.5 million upgrade to the facility, which includes new machinery and equipment, during the next four years.

Since relocating to Marshalltown from Columbus, Ohio, in 1993, Lennox has doubled both in size and employment. Workers produce furnaces and air conditioning units, which are distributed to a network of 7,000 dealers around the world.

“The Marshalltown operations is in competition with a half-dozen other locations nationwide for the facility,” said Kyle Gilley, governmental affairs manager for Lennox International. “Some of those locations already have Lennox plants and some do not.”

While Gilley said he is not at liberty to identify those cities, he pointed out that during the past year, Lennox has faced growing international pressure from manufacturing operations, particularly in China.

“To remain competitive, Lennox must make its U.S. factories more efficient,” Gilley said.

Consequently, the company proposes to implement more than 100 training programs in advanced manufacturing.

Other locations with existing manufacturing facilities are offering financial incentives to the company.

The company plans to make a decision later this year on where to proceed with the capital investment.

High-Tech Company to Use Funds to Grow

Professional Computer Systems (PCS) in Denison will receive a $329,000 investment from the Iowa Values Fund to produce a new generation of software for utilities.

The investment will help keep PCS’ headquarters in Iowa, provide technology jobs in a smaller Iowa community and improve the competitiveness of an Iowa-based software company.

PCS draws most of its revenues from outside Iowa. It has an established base of customers among municipal utilities and rural electric cooperatives for financial, billing and customer management software.

A project to upgrade the Elkem Carbon plant in Keokuk to produce synthetic graphite for iron foundries will receive a $100,000 state investment from the Community Economic Betterment Account (CEBA). The investment will increase sales and improve the competitiveness of the plant, the company said.

The project would retain 32 jobs at an average wage of $19.53 per hour.

Value-added agriculture companies, a mainstay of Iowa’s commerce, were recently awarded $1.6 million in financial assistance from the state for job creation and business development projects in renewable fuels, alternative energy and organic products.

Among them, Golden Grain Energy received a $400,000 investment from the Iowa Values Fund for its $55 million ethanol plant near Mason City, which will lead to the creation of 32 jobs. Midwest Renewables received a $400,000 investment for a proposed $64 million ethanol plant near Iowa Falls that would create 33 jobs.

A proposed expansion of Silicon Plains Technologies in Urbandale received a boost when the company was approved for a $266,000 investment from CEBA. The project is expected to create and retain 38 jobs.

Presently located in West Des Moines, Silicon Plains, a provider of content management and e-business solutions, will pursue a $5 million growth plan by expanding into a 10,000 square foot building in Urbandale.

Sites in Minnesota, Massachusetts and Arizona were also considered for the expansion.

— Karen E. Thuermer