A Cedar Rapids company has applied for state and local funds to help with a $17 million expansion project, officials announced Thursday.

Diamond V Mills officials are hoping for formal approval of the funding so the company can build a new world headquarters facility near the existing manufacturing plant at 2575 60th Ave. SW, Cedar Rapids. The project also includes the second phase of a production capacity expansion at the manufacturing plant. The expansions will add 12 new positions.

The company manufactures nutritional fermentation products that are used to optimize digestive function and nutrition that are important for animal and aqua health.

The building would replace the current headquarters in downtown Cedar Rapids. That location had been flooded, said Mike Wright, director of global marketing and research for Diamond V. The production facility sits on 77 acres of land. Part of the initial plan was to eventually move the headquarters to that location, forming a Diamond V campus.

The facility was built in 2009, and it already requires expansion, Mr. Wright said.

“Business is good; we just need the extra expansion to meet demand,” he said.

Priority One, the economic development division of the Cedar Rapids Area Chamber of Commerce, is assisting with the grant application.

Diamond V was founded in 1943 and is a privately held, family-owned business.