Investors plan to reopen lllinois iron foundry

A group of investors and financial support from the state of Illinois are funding the reopening of a commercial vehicle braking systems factory in Rockford, Illinois, which includes a recycled-content grey iron foundry.

Two announcements in the past 60 days from Illinois Gov. JB Pritzker and the Illinois Department of Commerce and Economic Opportunity (DCEO) indicate four former employees have been key players in the creation of Rockford Brake Manufacturing, which will restart production assets at a site described by the governor’s office as Rockford’s longest standing factory.

The four former Gunite Corp. executives have invested $6.6 million to restart the foundry and downstream brake component operations. Gunite and its parent company, Accuride International Inc., Santa Fe Springs, California, operated the complex when it shut its doors this February.

The state has reached an Economic Development for a Growing Economy (EDGE) for Startups agreement with Rockford Brake Manufacturing, providing a tax credit that allows companies to reduce their payroll withholding instead of their Illinois corporate income tax liability and enabling startup companies without corporate income tax liabilities to maximize their incentive to reinvest into their expansion project.

“Here in Illinois, we strive to support our businesses and strengthen our communities through new economic opportunities, and that’s exactly what we’re doing in Rockford,” Pritzker says. “Our state incentives are empowering Rockford Brake Manufacturing to bring 150 jobs to the area and reopen a historic Rockford factory. I’m proud to see this factory continue its legacy in manufacturing, all while supporting the area and promoting sustainability.”

Rockford Brake Manufacturing is in the process of purchasing the 619,000-square-foot factory and the 41 acres of land on which it sits. The campus includes a grey iron foundry and machine shop specializing in manufacturing brake drums for the commercial vehicle industry.

The new company says it will operate one of the most vertically integrated foundries in the United States Midwest, providing end-to-end production under one roof.

The governor's office says Rockford Brake Manufacturing supports the state’s clean energy goals by serving as one of Illinois’ largest recyclers, with 85 percent of its products made from recycled materials and 100 percent of finished products being recyclable.

Additionally, foundry byproducts at the Rockford facility are sustainably recycled by local municipalities and used as deicer for roads, fill dirt and concrete, according to state officials.

“The investment of the state of Illinois through the EDGE for startups program is critical to the launch and future success of Rockford Brake Manufacturing,” says Rockford Brake Manufacturing CEO Paul Wright, one of the four co-investors. “We are thankful for the support of our local elected officials and our partners at the state of Illinois to help us bring skilled, well-paying jobs to Rockford through direct employment, along with the considerable economic impact Rockford Brake Manufacturing brings to the region.”

“Rockford is proud to be home to a true American comeback story—a closed factory and laid-off workers came together to rebuild, rehire and reclaim their place in automotive manufacturing. That’s true resilience,” Rockford Mayor Tom McNamara says.