Delco Trailers announces financing for major expansion and 300 new jobs

Delco Trailers, Ltd. announced the closing of financing for a new 550,000 square foot manufacturing facility expected to bring 300 new jobs to Lamar County over the next five years.

Construction will be completed in 2022 and will allow Delco to expand its production and optimize its manufacturing lines. More than 90% of the new jobs will be accessible to persons with a high school degree or equivalent, and every job will have strong wages and include healthcare and other benefits.

Delco’s $29 million investment will bring a much-needed economic boost to the community. Lamar County supported the expansion and job creation by providing an ad valorem tax exemption for new investment at the project location. The ad valorem exemption had been under consideration by Lamar County since earlier this year but required State approval. The County was able to approve the exemption at its regularly scheduled meeting today. The ad valorem exemption extends for seven years beginning at 100% for two years and then decreasing to 75% for two years, 50% for two years and 25% for the final year.

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Debt financing for the new facility was provided by First Financial Bank and closed earlier this month. First Financial Bank used a USDA-guaranteed loan and New Markets Tax Credits (NTMCs) to facilitate the financing. Rural Development Partners (Forest City, Iowa) and Waveland Community Development (Milwaukee, Wisconsin) partnered to provide NMTC funding for construction and equipment purchases. The NMTC financing allowed Delco to build a larger facility, increase the number of new jobs and move the project forward more quickly.

Delco’s partnership with RDP will benefit the community beyond the 300 new quality jobs. Through RDP’s Community Investment Program (CIP), funded jointly with Delco, the two partners have $180,000 in funding to target workforce development initiatives identified by local community leaders.

“We are tremendously excited about the future of Delco Trailers in Lamar County. We look forward to growing the Delco work family and welcoming 300 new team members,” said Delco founder and CEO, John Dyck. “This company has a strong vision, and this significant new investment will have a positive and lasting impact on this community.”

“Delco’s investment in Lamar County will create an estimated $140 million in direct payroll throughout Lamar County over the next 10 years and will be a great source of quality job opportunities for our citizens,” said Maureen Hammond, Executive Director of the Paris Economic Development Corporation. “We want to thank Judge Brandon Bell and Lamar County Commissioners Anderson, Bass, Layton, and Skidmore for being forward-thinking partners in economic development and supporting this tax abatement for Delco Trailers. John Dyck and the rest of Delco’s leadership team have an ambitious plan for expansion, and this tax abatement will help make it a reality.”

“First Financial Bank was pleased to provide financing for this much-needed expansion allowing Delco to continue growing its business,” said David Bailey, Executive Vice President for Commercial Banking at First Financial Bank. “Our ability to use non-traditional tools like New Markets Tax Credits and USDA loan guaranties reflects First Financial Bank’s commitment to supporting our business customers.”

“Rural Development Partners is privileged to partner with Delco to bring quality jobs and workforce training opportunities to the great community of Lamar County,” said Jonathan Klaassen, Chief Executive Officer of Rural Development Partners. “We are thankful NMTC financing can increase and greatly accelerate the availability of these jobs for community residents.”

“Waveland Community Development is excited to build on Lamar County’s economic success by providing NMTC financing for Delco Trailers,” said Paul Deslongchamps, Manager of Waveland Community Development. “The NMTC Program was an essential part of the financing for Delco’s new facility and the creation of 300 new jobs for the community.”