HEDA breaks ground on new manufacturing facility

HIBBING—A ceremonial groundbreaking took place on Thursday at the future location of a new 35,000 square foot manufacturing facility in Hibbing.

Advanced Machine Guarding Solutions (AMGS), a Hibbing-based manufacturer of a variety of steel machine guarding products is expanding its operation to allow for growth. The company is planning on leasing the new facility from the Hibbing Economic Development Authority (HEDA).

The new facility is being built at 1122 East 13th St. in the North Hibbing Industrial Park on nine acres of land owned by the City of Hibbing.

Construction is set to begin yet this year and completed by early spring 2025, according to HEDA President Shari Majkich Brock.

Jason Wobbema, AMGS Owner and President is originally from Hibbing and has more than 25 years experience with robotics. AMGS got its start in January 2021 in the manufacturing facility where Detroit Diesel Remanufacturing had operated until needing more room for expansion.

“We’re up to 15 employees now,” Wobbema said prior to the ceremony on Thursday.

Wobbema said once the new building is complete, he anticipates there’ll be rapid growth in his company. Positions will vary and include welding, powder coating, general labor, engineering, and customer service, he said.

AMGS is anticipated to create about a dozen new jobs by 2025 at $20 to $31 per hour, according to information from Iron Range Resources.

Hibbing Mayor Pete Hyduke, Minnesota State Senator Rob Farnsworth, Minnesota State Representative Spencer Igo, IRRRB Commissioner Ida Rukavina, HEDA President Shari Majkich Brock and Jason Wobbema, AMGS Owner and President spoke at the groundbreaking ceremony.

“Today, marks a significant milestone in our journey and the journey of Advanced Machine Guarding Solutions, also known as AMGS,” Hibbing Mayor Pete Hyduke told those assembled at the groundbreaking on Thursday. “As we stand on this parcel here in North Hibbing Industrial Park, soon to be transformed into the expanded home of a thriving and rising business, we are not only breaking the ground—we are breaking into new opportunities, new partnerships and a future filled with promise.”

Farnsworth, a member of the IRRR Board, talked about Wobbema’s decision to invest in the Range and what it means to the local economy.

“That’s a big deal on the Iron Range,” Farnsworth said.

“Jason, thank you for taking a chance on the Iron Range—you could have gone anywhere,” Farnsworth said.

Farnsworth extended his thank you to everyone who played a role in the project.

“Thank you for taking a chance on us and thank you for giving us some good news,” he said.

“To all the other entrepreneurs, Hibbing is open for business,” Farnsworth concluded.

Igo, the current IRRR Chair, pointed out he was wearing a “Better in Our Backyard” shirt, suitable for the groundbreaking event.

“We’re literally going to do something good in our own backyard,” Igo told the crowd.

Igo stressed the role partnerships play in projects such as the expansion being celebrated.

“We’re either going to win together, or lose alone,” Igo said.

Igo also touched on the economic impact of the project to help retain our youth, build up schools, and diversify the local economy.

“We’re all a part of this,” Igo said, urging the crowd to let people in the community know about the project.

“Because that’s how we’re going to get the energy to get more things like this happening, and the Iron Range is going to be a place that is prospering for generations to come.”

IRRR Commissioner Ida Rukavina said after touring other manufacturing facilities on Thursday, it is “fun to celebrate a new one.”

Rukavina told how the IRRR funds projects through taconite production taxes paid by local mining companies.

IRRR and DEED are backing construction of the new manufacturing building with a $4.5 million, 20-year, zero interest loan with repayment from the “net rents” on the building. Park State Bank, DEED and IRRR are also backing the company with a $1.25 million loan to help it build more equipment and increased automation for automatic powder coating and robotic welding.

One of the IRRR’s primary goals is to help diversify the economy and assist communities and businesses across the Taconite Assistance Area, Rukavina explained in a news release.

“The new manufacturing site in Hibbing will create much needed additional industrial space in the region, which will be leased to AMGS, a very successful and growing local business,” Rukavina said. “The project is an excellent example of economic growth that can create well-paying jobs and innovation in the automation industry.”

Rukavina noted the expansion will also provide construction jobs and jobs in the trades while the new facility is being built.

Brock provided a background on the project that started in 2019 with John Tourville, the HEDA Director at that time. HEDA, with support of the IRRR, purchased property not far from the expansion site on 7th Avenue east with the hope to incubate new business, she said.

“In 2021 John worked with AMGS to move into this space as an entrepreneurial start up,” Brock said. “The past three years have seen AMGS grow to the point where the company needs additional manufacturing space to expand their operations.”

In the fall of 2023, HEDA, with the help of Katie Hildenbrand and her crew from Widseth, conducted an assessment and also looked at other locations within the city.

“When we couldn’t find something and expanding at the current site wasn’t possible, we had to come up with a new plan,” she said.

“As HEDA’s intention is to continue incubating AMGS and assist with the planned expansion, diversify our economy, and assist in job creation, we worked with the IRRR and DEED’s 21st Century Mineral Fund to plan a new 35,000 square foot facility for AMGS. And, today, right here on HEDA-owned land in the same industrial park where AMGS got their start we’ll take the first step to make that new building a reality.”

“Work at this site has been done to ensure that the facility is built on the optimal location of this 9-acre site while being mindful of the golf balls flying, just across the street,” Brock assured.

Hyduke also commented on the “merry-go-round” of different properties that were considered when looking for a way forward. “The bottom line is that we made the right decision.”

Wobbema gave a heartfelt thank you to all of the partnering entities involved in the project and also thanked his wife.

Building the most advanced automation on the arrowhead able to compete on the global market.

“What we make may not be high tech, but how we produce it is.”

For those not familiar with their products, Wobbema explained the steel guarding made by AMGS helps protect operators in manufacturing.

Wobbema became emotional, wiping away tears, while talking about the history of his business and the support its received since it started.

“It doesn’t get any more real than that,” Hyduke said, commending Wobbema on his passion for his business and his employees.

AMGS is anticipated to start building and installing their new production equipment next spring.

HEDA is planning a ribbon cutting to “show off” the new facility once AMGS is ready.