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Area Development - Site Selection, Facility Planning and Workforce Development

Crystal Group Inc. Plans $17.5 Million Expansion In Hiawatha, Iowa

04/21/2017
Crystal Group Inc., a leading designer/manufacturer of rugged computer hardware, announced plans for a $17.5M business expansion development in Hiawatha, Iowa.

The current industrial site, located at 855 Metzger Road will be completely developed for a new 111,500 square foot office and manufacturing location to expand production capacity and drive continued growth. The project will create 45 new jobs in manufacturing, engineering and sales. Crystal Group Inc. received regulatory and governmental approval and financial assistance for the project.

Crystal Group Inc. is an employee-owned small business providing server, switch, display, storage and embedded computer architectures and related integration services for mission critical installations worldwide.

The company designs, manufactures, integrates and supports rugged computer-based systems for intelligence, communications, reconnaissance, navigation, surveillance and critical control applications in government and industrial segments. The current Hiawatha location employs 165 people.

"Last year Crystal Group experienced tremendous growth in the defense and industrial markets that we serve, especially in the emerging autonomous segment. Our strategic plan calls for increasing our revenue at least double digit percentages annually," said Crystal Group President Scott Kongable. "This expansion underscores our commitment to that growth in Hiawatha with adequate space, staffing, and funding to accommodate rapid progress and an expanding customer base."

Currently, Crystal Group operates from two buildings totaling 58,000-square-feet in Hiawatha located on Kacena Road. The new building will be situated on land that is located directly behind the current plant.

"Our production and manufacturing capabilities must evolve with our products to meet the changing needs of our defense and industrial customers," said Michael Kruger, Vice President of Manufacturing at Crystal Group. "Our investment in updated equipment, improved manufacturing processes and facilities reflects our focus on maintaining our competitiveness, as well as our commitment to the community."

The City of Hiawatha approved economic development assistance for this project at its meeting on April 19, 2017. The City also approved sponsorship of the state financial assistance application, which was approved earlier today by the Iowa Economic Development Authority Board. State financial assistance will be primarily in the form of state tax credits. The Cedar Rapids Metro Economic Alliance assisted in preparation of the state application that was sent to the Iowa Economic Development Authority earlier this month.

"Crystal Group has been an asset to our City, and this expansion shows their confidence in Hiawatha and long-term commitment to the area," said Hiawatha Mayor Bill Bennett. "It has been wonderful to see the growth of Crystal Group as leaders in their industry and a true success story."

"It is a pleasure to facilitate expansion projects for our members," said Brian Crowe, Economic Development Strategist, Economic Alliance. "We're pleased to be a small part of Crystal Group's impressive growth."

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