Procter & Gamble expands Iowa City Oral-B facility with USD 150M investment

USA – Procter & Gamble (P&G) is undertaking a significant expansion of its Oral-B manufacturing facility in Iowa City with a USD 150 million investment. 

This expansion involves constructing a new 150,000-square-foot building that will accommodate an additional production line. 

Approximately USD 75 million of the investment will be used to fund the construction of the new building. 

In comparison, the remaining USD 75 million will be dedicated to acquiring modern, state-of-the-art equipment to enhance the facility’s production capabilities.

This development is expected to create approximately 100 new jobs, including 95 manufacturing technician positions with an average hourly wage of USD 31.75 and five project management roles paying USD 41 per hour. 

Currently, the Oral-B facility employs approximately 600 workers, and the expansion will bolster its manufacturing capacity within P&G’s oral care product line.

The project has garnered substantial financial support through tax incentives. 

The Iowa Economic Development Authority awarded P&G USD 5.25 million via the High Quality Jobs Program, which includes a 2% investment tax credit worth up to USD 3 million and a sales/use tax refund during construction valued at up to USD 2.25 million. 

These tax credits will be distributed over five years at an annual rate of USD 600,000 per year. 

Additionally, Iowa City approved a local tax incentive featuring a five-year property tax exemption, which gradually phases out from 75% in the first year to none by the sixth year.

This expansion not only highlights P&G’s long-term commitment to Iowa City but also represents a significant economic boost to the local community, likely increasing demand for housing, services, and local suppliers. 

Iowa leaders have praised the collaboration of state and local incentives in attracting significant corporate investment, strengthening Iowa City’s position as a key manufacturing hub in P&G’s North American supply chain.

P&G FY 2025 financial highlights

Procter recently reported its fiscal year 2025 results, showcasing steady performance amid global volatility. 

Net sales reached USD 84.3 billion, unchanged from the prior year, as a 1% increase from pricing was offset by a 1% decline due to foreign exchange impacts. 

Organic sales grew 2%, driven equally by higher pricing and volume, while diluted EPS rose 8% to USA 6.51, supported by lower SG&A costs and the absence of prior-year impairment charges. 

The company returned over USD 16 billion to shareholders through dividends and share repurchases, marking its 69th consecutive year of dividend increases. 

Looking ahead to fiscal 2026, P&G expects organic sales growth of up to 4% and core EPS growth in the range of flat to 4%, despite headwinds from commodity costs, tariffs, and interest expenses.

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