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Elanco strengthens commitment to FD

Jobs to be retained, investment to continue

-Messenger photo by Kelby Wingert
Leaders of Elanco Animal Health have committed to investing $106 million into the company's Fort Dodge site over the next six years, creating 26 jobs and retaining the 441 jobs currently there.

For more than 50 years, vaccines and medicines that veterinarians depend upon have been produced at a facility on the northwest side of Fort Dodge. That manufacturing tradition is poised to continue.

Leaders of Elanco Animal Health have reaffirmed their commitment to that sprawling Fort Dodge campus following the company’s recent acquisition of Bayer’s animal health business.

That purchase prompted a thorough review of all the company’s plants and three of them were sold. But the company decided to keep the Fort Dodge one, and has committed to investing $106 million there over the next six years.

It will also create another 26 jobs and retain the current 441 jobs there.

“We are pleased to continue our work to serve farmers, veterinarians and pet owners through our manufacturing and R and D operations in Fort Dodge,” David Evans, executive director and site head for Fort Dodge — Elanco, said in a written statement.

The company is slated to receive millions of dollars in aid from the state, county and city governments, plus job training assistance from Iowa Central Community College. “The collaboration and support of the state, county, city, Iowa Central Community College and Growth Alliance leadership has been excellent and we look forward to continuing to build a leading animal health company through our operations in Iowa,” Evans said.

Elanco purchased the plant from Boehringer Ingelheim Vetmedica in 2017 in an $885 million deal.

The plant was built by Fort Dodge Laboratories, and some longtime residents may still refer to the site as “the Labs.” The company’s name was later changed to Fort Dodge Animal Health.

The site was later owned by Pfizer Inc. and Boehnringer Ingelheim Vetmedica.

It has facilities for research and development along with manufacturing capability. Vaccines for dogs, cats, cattle and pigs are made there.

The plant contributes more than 40 percent of Webster County’s manufacturing gross regional product, according to the Greater Fort Dodge Growth Alliance.

“We are happy to see Elanco stay within our community,” said Webster County Supervisor Mark Campbell.

“Keeping this plant is positive not only for Webster County, but the region as well,” he added. “About 50 percent of Elanco’s employees commute from outside the county to the plant.”

Multiple levels of government came together to craft an incentive package for Elanco.

“All parties stepped up to the plate to create a package that would be competitive with the other locations under consideration,” said Dennis Plautz, the chief executive officer of the Greater Fort Dodge Growth Alliance. “It is one of the most creative incentive packages that I have seen in my years of economic development.”

The Iowa Economic Development Authority is poised to offer $2.2 million in direct incentives and $3.8 million in indirect financing and tax credits.

Webster County will offer a $500,000 grant.

Iowa Central Community College will offer a job training grant of $330,000.

The Fort Dodge city government will offer a tax increment financing rebate of 80 percent of the increased revenue, estimated at $480,000.

The city will also offer a rebate of 80 percent of the increased taxable value of the site due to the planned remodeling.

The city will also annex the plant into its corporate limits. The facility at 800 Fifth St. N.W. appears to be on a city street, but it is actually just outside the city limits. Because it is outside the city limits, the company pays a higher rate for water and sanitary sewer service. Being in the city will entitle it to lower rates, saving the company more than $360,000 a year for the first five years.

“It has been one of my goals as mayor to annex the facility into the city due to its proximity and the city services that we already provide,” Mayor Matt Bemrich said. “We have worked with the different owners of the facility over the years on numerous projects, but this one was the perfect project to create a win-win situation for both Elanco and the city.”

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