After months of negotiations, and then holding their collective breaths, Iola officials got word Monday their work had come to fruition. Gates Corporation is expanding its Iola plant. IN OPERATION since 1975, the Gates Iola plant employs more than 650 people in its manufacturing and distribution operations, and is accepting applications, the company said in its press release.
Gates Corporation manufactures industrial and automotive products — hoses and belts foremost among them. The expansion will accommodate its new line of oil and gas hose products.
The 82,000-square-foot expansion will increase the size of the plant to more than 500,000 square feet.
The Iola plant manufactures hydraulic and other industrial hose products.
Construction is expected to begin in the summer and will take approximately 18 months to complete including equipment installation.
“We are very excited about this expansion of our Iola manufacturing facility,” Scott Strycker, Gates Iola plant manager, said in a press release.
“Selecting Iola as the site for this new facility speaks to the quality of the people and products manufactured out of the Iola plant,” added Ken Friedman, Gates’ Americas Regional president.
Iola City Administrator Carl Slaugh said he enjoyed hearing the news.
“It’s always a good sign when a company expands. It shows they’re committed to protecting the jobs we have here,” Slaugh said.
The expansion will be used to produce specialized hoses for the oil drilling industry, Slaugh said.
Slaugh said the $17 million expansion includes equipment imported from Italy, and $4.6 million for the building itself.
Initial estimates put the expansion as creating an additional 25 or so jobs to the Iola plant, although Gates officials have backed off that projection.
The announcement caps several months of talks between Gates Corporation, the city, and the Kansas Department of Commerce.
Slaugh said KDOC representatives did a good job in providing an incentive package.
Likewise, the Iola City Council is expected to act in the coming days on electrical upgrades to accommodate the expansion. Anticipated cost to the city is about $300,000, Slaugh said.
Former Iola Mayor John McRae applauded the city’s work.
“There were a lot of people involved with this,” McRae said. “David Toland played a big role. The city really shined in getting this done.”
Gates provides advanced power transmission and fluid transfer products and services.
Power transmission products include rubber and polyurethane accessory drives and synchronous belts, idlers and tensioners.
Fluid transfer products include hydraulic and transfer hose and assemblies, couplings and related services such as hose inspection, maintenance, repair and monitoring.
Gates serves customers across a broad range of sectors, including oil and gas, mining, processing, construction, agriculture, transportation, automotive and manufacturing.
The U.S. headquarters is in Denver, Colo. Gates employs over 14,000 people across 105 locations in 30 countries.
Gates-Iola announces expansion
