Company plans $9 million expansion at manufacturing facility
OWATONNA – Plymouth-based Daikin Applied Americas Inc. announced plans today for a $9 million expansion project that will create 40 jobs at its manufacturing facility in Owatonna. The company, which specializes in making heating, ventilation and air conditioning systems for the commercial sector, said it will expand an existing facility at 1001 21st Ave. NW in Owatonna. Daikin Applied has had manufacturing operations in southern Minnesota since 1949 and also has operations in Faribault.
The Minnesota Department of Employment and Economic Development (DEED) is partnering with Daikin Applied on the expansion, awarding the company $880,000 from the Minnesota Job Creation Fund. The company must meet job creation goals and other performance measures in order to receive the funding.
“The Minnesota Job Creation Fund was launched just six months ago. It has already helped finance business expansions, like Daikin Applied’s, throughout our state, which have added hundreds of new jobs,” said Governor Mark Dayton. “I thank Daikin Applied for its very important expansion in Owatonna and for its continued commitment to Minnesota.”
The Minnesota Job Creation Fund, which was first proposed by Governor Dayton, will provide $24 million in business incentives that were approved in the 2013 legislative session. Officials said the program is helping the state to compete for new jobs and businesses.
“Daikin Applied's expansion of its Owatonna facility is good news for the city and the state,” said DEED Commissioner Katie Clark Sieben. “We’re pleased to help this global company expand its footprint and bring new jobs to southeastern Minnesota.”
Daikin Applied is a subsidiary of Japan-based Daikin Industries Ltd., a Fortune 1000 company with 2013 revenues of more than $18 billion and a workforce of more than 51,000 people worldwide.
The company says it is the largest manufacturer of heating, ventilation and air conditioning systems in the world.
The Minnesota Job Creation Fund is a new pay-for-performance program that provides up to $1 million to businesses after they meet certain criteria, including minimum requirements for job creation and private investments. Under the program, businesses must create at least 10 full-time jobs and invest at least $500,000 to be eligible for financial assistance.
The program is available to businesses engaged in manufacturing, warehousing, distribution, technology and other eligible activities. Companies must work with the local government (city, county or township) where a project is located to apply to DEED to receive designation as a Job Creation Fund business.
Since the Job Creation Fund was launched in January, DEED has awarded $8.76 million in funding to 13 companies in Minnesota. Those companies have committed to creating 1,000 jobs and investing $151.9 million to expand.