CEDAR RAPIDS – A major manufacturer of luxury kitchen appliances is planning a $196 million expansion in Iowa, a project state leaders say will bring hundreds of jobs and strengthen the state’s role in American manufacturing.
Sub-Zero Group, Inc. plans to expand its Cedar Rapids manufacturing facility with an approximately 225,000-square-foot building addition. The project is expected to create 312 jobs, including 115 jobs incented at a qualifying wage of $30.41 per hour.
The Iowa Economic Development Authority Board approved $9,813,850 in tax credits for the project through the state’s Business Incentives for Growth program, known as BIG.
Sub-Zero Group manufactures premium refrigeration products and luxury kitchen appliances sold through its Sub-Zero and Wolf brands. The company is known for high-end refrigerators, freezers, wine storage, cooking appliances and other kitchen products used in homes, restaurants and upscale building projects.
The Cedar Rapids expansion is expected to allow on-site refrigerator assembly while also integrating warehousing and injection molding operations. That means more of the company’s production process can be handled at the Iowa facility, giving the project added importance beyond the number of jobs alone.
The Sub-Zero project was one of five manufacturing projects approved for incentives by the IEDA Board. Together, the five projects are expected to create 521 jobs and generate nearly $400 million in new capital investment across Iowa.
“The BIG program is delivering exactly what it was designed to do — helping companies invest, expand and create high-quality jobs across the state,” Governor Kim Reynolds said. “From pharmaceuticals and food production to aerospace materials and advanced manufacturing, these projects reflect the confidence companies have in Iowa’s workforce, business climate and long-term economic momentum. Iowa continues to prove that when government and industry work together, we can compete and win.”
For Cedar Rapids, the Sub-Zero expansion represents one of the larger manufacturing investments in the state’s latest round of economic development awards. The project’s $30.41 qualifying wage also places the incented jobs above many entry-level positions, giving the expansion a stronger payroll impact for workers and the local economy.
Trump
The project also fits into a broader national push to grow manufacturing inside the United States. President Donald Trump has made reshoring and domestic production a centerpiece of his economic agenda, using tariffs, tax policy, investment incentives and “Made in America” messaging to encourage companies to build, expand and produce more goods on U.S. soil.
That national focus on manufacturing is especially relevant in states like Iowa, where industrial employers remain important to local economies. Manufacturing jobs support not only factory workers, but also suppliers, trucking firms, contractors, maintenance companies, packaging operations and local service businesses.
Sub-Zero’s plan to expand refrigerator assembly in Cedar Rapids also points to a broader trend in which companies are looking to simplify supply chains and keep more production closer to American customers. For Iowa, that can mean more private investment, more skilled jobs and more long-term economic activity tied to production rather than just distribution.
The state’s BIG program is designed to support business expansion projects that create jobs and bring capital investment to Iowa. In the Sub-Zero case, the tax credit award is tied to the company’s planned building expansion, new operations and job creation in Cedar Rapids.
The IEDA Board awarded Sub-Zero Group $9,813,850 in tax credits for the project.