Sub-Zero, a high-end appliance company based in Wisconsin, has started construction on a new manufacturing facility in Cedar Rapids, Iowa. The $140.6 million project is expected to create 200 jobs and bring economic development to the area. The groundbreaking ceremony for the 614,000 square-foot factory took place on Wednesday, with state and city officials, as well as representatives from Sub-Zero Group Inc. and development partners, celebrating the milestone.
The new facility will be located at 10015 Sixth St. SW, near The Eastern Iowa Airport and Interstate 380. Cedar Rapids officials and the Cedar Rapids Metro Economic Alliance responded to a request for proposals from Sub-Zero, offering financial incentives to attract the company to the area. In June, the Iowa Economic Development Authority awarded $2.56 million in investment tax credits and sales and use tax credits to Sub-Zero. The state also approved a $1.135 million forgivable loan, contingent on a local match. The Cedar Rapids City Council signed off on a 20-year, 75 percent tax break on the project, with an estimated net present value of $15.4 million.
Construction is scheduled to be completed by August 2025. Scott Wareing, senior vice president of operations and product design with the Sub-Zero Group Inc. project development team, explained that the company decided to build the new facility due to challenges faced during the COVID-19 pandemic, which disrupted the supply chain. Sub-Zero recognized the need for additional manufacturing capacity and wanted to ensure a resilient supply for its consumers.
Sub-Zero considered multiple communities and enlisted the help of real estate services firm Avison Young to identify potential locations. After narrowing down the list of communities, the company eventually chose Cedar Rapids due to the collaborative efforts of the city and Economic Alliance, as well as the supportive businesses in the area. Despite the ongoing labor shortage, business leaders in Cedar Rapids showed openness and willingness to work together.
The $140.6 million investment by Sub-Zero will lead to the creation of high-quality jobs and a significant annual payroll for the facility. The economic impact will benefit local restaurants, retailers, banks, and other financial institutions in the community. The financial incentives offered by the state and lower corporate tax rates in Iowa played a role in attracting Sub-Zero to the state. Iowa has been working to create a business-friendly environment, and by 2026, the state aims to have a flat corporate tax rate of 5.5 percent and a personal income tax rate of 3.9 percent.
The new manufacturing facility in Cedar Rapids is a significant milestone for Sub-Zero, a company with almost 80 years in the business. Sub-Zero is known for its premium-grade consumer products, including Sub-Zero refrigerators, Wolf ovens and ranges, and Cove dishwashers. This expansion will provide the company with the manufacturing footprint it needs to meet growing demand and ensure a steady supply for its loyal customers.
With construction underway, the new Sub-Zero facility is expected to have a positive impact on the local economy and further enhance Cedar Rapids’ reputation as a center of industry and innovation. The completion of the project in August 2025 will mark a new chapter in the economic development of Cedar Rapids and bring more opportunities for residents in the area.
