Farm Equipment Maker Geringhoff Expanding St. Cloud Plant, Creating 20 Jobs
The state’s Department of Employment and Economic Development (DEED) said Tuesday it would be providing financial support to farm equipment manufacturer Geringhoff Corp. as it expands its St. Cloud facility—an effort it said would yield 20 new jobs.
DEED agreed to give Geringhoff a $169,000 grant, covering nearly a third of the company’s expansion costs, which are estimated at $520,000.
“This is a smart investment that will help the company meet growing demand in the agricultural sector,” said DEED commissioner Shawntera Hardy in a statement.
Geringhoff, however, will have to first achieve its hiring and investment goals to receive the grant.
To do so, the company will first need to complete construction of a second assembly line at its St. Cloud plant, where it currently employs 34 full-time workers. The additional line will allow Geringhoff to increase production of combine headers used to harvest corn, the company said, as well as expand production to a new line of headers used to harvest smaller grains, such as soybeans—one of Minnesota’s top crops.
“Geringhoff is diversifying into a new line of harvesting equipment at a time when U.S. farm production is at or near record levels for corn and soybeans,” Harding added.
After hiring at least 20 additional workers, Geringhoff will receive its grant. Those new jobs, according to Geringhoff, are expected to pay an average wage of $17.50 an hour.
Geringhoff is a long-standing farm equipment manufacturer, founded in 1880 in Ahlen, Germany. In 2013, the company opened its St. Cloud facility, which was its first manufacturing plant outside of Europe.
DEED’s grant for Geringhoff comes from the Job Creation Fund, a pay-for-performance program launched by the state in 2014. To this day, the fund has awarded $33.7 million to 74 business expansion projects in Minnesota. According to DEED, the fund has helped created over 4,600 full-time jobs and brought about nearly $950 million in local investments from companies in the state.