Mitas, a Czech-based producer of radial agricultural and off road tires, will invest $43.8 million in its first U.S. manufacturing plant in Charles City, Iowa
"We are opening the US plant to free production capacity in our European plants," Jaroslav Cechura, Mitas chief executive officer said. "We bring 78 years of expertise in tire-making. U.S. farmers will benefit from our advanced tires and increased competition."
Located in a former Winnebago Industries building in northern Iowa, the factory will produce the firm's Mitas and Continental brands of farm radial tires.
Mitas expects it will employ more than 260 employees when the plant reaches peak production capacity in about four years. "Iowa is central to our North American strategy," Cechura, explained.
"Mitas is committed to Iowa," said Vladimir Dusanek, U.S. project director of Mitas. "Mitas is committed to creating new jobs in Iowa and for Iowans. Virtually all employees of the Charles City plant will be local," he added.
While the company did not release details of any incentive package, a company spokesman said Mitas and officials from the city, county and Iowa Department of Economic Development signed an investment agreement. Tax credits are generally tied to job creation. According to public records, local officials approved a nine year, 90 percent, property tax credit and $192,500 in urban renewal funds.