State economic development visits Benson Hill, Precision Optical

Iowa Economic Development Authority Director Debi Durham visited two Creston locations Thursday as part of regular tours of towns and facilities across the state.

Durham’s first stop was at Benson Hill, the soybean processing plant, that recently received some state financial help for an expansion of their facility.

“I was extremely impressed with their philosophy to business and approach to innovation and their plans to grow here,” she said.

About a year ago, Benson Hill purchased the plant from ZFS and is preparing to put their own signature on the facility on Creston’s east side.

Benson Hill was awarded assistance through the Iowa Economic Development Authority (IEDA) for its expansion.

Benson Hill was one of five companies awarded that will assist in 266 cumulative new jobs and $202 million in new capital investment. Other projects are in Charles City, Council Bluffs, Fairfax and Fort Dodge.

The Creston location converts its own soybeans into high-protein soymeal and high-oleic oil, food-grade soy white flake, flour and grits. Benson Hill’s soy protein ingredients are for human and pet foods.

Benson Hill’s own soybeans are “ultra-high” protein that contain 20% more than typical soybeans. Its soy ingredients reduce water use by 70% and result in 50% fewer carbon dioxide emissions, by streamlining the steps required for traditional soy processing.

Expansion work will include a 15,000-square-foot building expansion and the purchase of equipment to create an extrusion facility to foster product innovation and increase manufacturing scale. The resulting high-protein soy ingredients will be marketed industry-leading consumer packaged goods companies.

“Everything I heard today, it’s a very intrical part of their growth plans. They have a great team they want to build on,” Durham said. “The projects we are looking at are infrastructure, sewer and water projects, to downtown catalyst projects or Main Street projects.”

The Iowa Economic Development Authority’s (IEDA) strives to improve economic and community with partnerships and resources to for businesses to consider Iowa. Through two main divisions – business development and community development – IEDA administers several state and federal programs to meet its goals of assisting individuals, communities and businesses.

Durham also toured Creston’s Precision Optical Group at 701 S. Oak which is celebrating 30 years of producing vision lenses.

Co-founder Mike Tamerius told Durham the company’s history when he and Matt Somers agreed to start the business together in 1992.

Precision Optical grew in Creston before eventually having operations in other cities including Chicago and Texas. Tamerius. He said he has 80 employees in Creston, another 35 in Chicago and is part of a collaboration with other lens producers with 60 employees in Green Bay, Wisconsin.

Durham said she is encouraged by the strength of Iowa’s economy based on decisions and actions made during the COVID pandemic.

“Reynolds made all the right calls,” she said about about Governor Kim Reynolds wanting to keep as much of the state’s factories and pieces of economy in operation. Durham also credits the state’s banking industry for its efforts.

“The PPP was remarkable,” she said about the Small Business Administration’s loan program to keep employees paid during the pandemic.

“We were nimble and flexible,” she said about the state maneuvering through the pandemic. “None of us knew what we were dealing with.”

Durham said the trips give her a chance to hear from communities and industry about what is working and what could be added to improve conditions for both.

“See what they are doing to be competitive in today’s marketplace,” she said.

She noted the use of automation at Benson Hill and Precision Optical which she will not say it replaces people.

“That is not the case. it basically makes them more efficient and allows them to be more productive,” she said. “It creates a safer work environment and takes a lot of the pressure off.”

Durham said notes are made to see what the trends are with Iowa economy.

“It felt like things were shifting a bit. The first and only thing we ever talked about was workforce. That’s not the case today. Is workforce still a need? Absolutely. But it is not the first thing we talk about; we talk about supply chain restraints,” she said.

Manufacturing is the largest sector of the state’s gross product, she said. Durham said COVID has given manufacturing the opportunity to look at multiple supply chains and efforts to have more American based suppliers.

Durham said companies are doing more research and effort on carbon-neutral opeartions; limiting the gases that contribute to climate change.