In September 2023, Madison, Wisconsin-based Sub-Zero broke ground on a $140 million manufacturing facility in Cedar Rapids, Iowa, to make its supply chain for high-end kitchen appliances more resilient.
Originally scheduled to open in August 2025, the 614,000-square-foot factory likely won't open its doors until later this year. But now, Sub-Zero's manufacturing footprint in Cedar Rapids could be much larger.
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This morning, the Cedar Rapids Metro Economic Alliance announced a new $196 million expansion that will add another 230,000 square feet and create some 312 new jobs. Between the two projects, the kitchen equipment making campus is expected to create more than 500 new positions.
Sub-Zero manufactures premium kitchen appliances under the Sub-Zero, Wolf, and Cove brands.
The co-located project is expected to enhance production capacity while further integrating advanced manufacturing technologies into the facility. Food Manufacturing reached out to the company for additional details, but it has not yet responded to our request for comment. Construction timelines and additional project details will be announced as planning progresses, according to the Cedar Rapids Metro Economic Alliance.
According to a local report, preliminary terms with Cedar Rapids include a 10-year, 100-percent exemption from some local property taxes, which works out to an estimated $7 million tax break. Sub-Zero is also applying for state incentives through the Iowa Economic Development Authority.
About $126 million of the investment is expected to go towards machinery and equipment.
“Projects like this highlight the importance of having shovel-ready sites and infrastructure in place,” said Mike Lukan, director of economic development at Cedar Rapids Metro Economic Alliance. "We’re seeing sustained demand for industrial space."
Sustainability was a large component of Sub-Zero's first phase in Cedar Rapids. For example, the site uses an ice-based thermal energy storage HVAC system, also known as "ice brick" technology. The company will freeze water during off-peak hours and use the stored cooling energy during the day to help shift energy use away from periods of high demand.
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