DOWAGIAC — Premier Tool and Die Cast Corp. plans a $3.2 million expansion in Dowagiac expected to create 179 jobs by resurrecting the former ICG plant across Paul Street as a new zinc and aluminum die cast and assembly operation.

After nearly 18 months of “diligent effort,” Mayor Donald Lyons announced Tuesday that the Brownfield Redevelopment Authority entered into a purchase agreement with Premier, based in Berrien Springs, so it can expand operations in Dowagiac.

“We are extremely pleased that we have been able to find ways to address the environmental clean-up necessary to make the former ICG facility ready for industrial operations,” Lyons said.

With this agreement in hand, the Brownfield Redevelopment Authority will purchase the property from Cass County for back taxes.

In turn, the final environmental clean-up will take place through grants and matching funds provided by Premier.

Last August, the state announced that Premier’s Dowagiac plant ranked as one of nine companies being helped to grow by the Michigan Economic Development Corp. (MEDC).

Since that time, the city has been working closely with Premier, the federal Environmental Protection Agency (EPA) and the MEDC to deal with environmental concerns so manufacturing could once again take place at the abandoned ICG, or Du-Wel, factory.

Premier is a global supplier of metal castings for automotive, electronics, appliances, furniture, transportation and defense sectors.

The project is expected to create up to 179 total jobs, including 100 directly at the company.

MEDC estimates the increased economic activity created by the project has the potential to spin off another 79 indirect jobs.

City Manager Kevin Anderson said the company hopes to have the cleanup completed early in 2012.