Economic Development News of Interest in Southwest Indiana

Photo & article courtesy of Vincennes Sun-Commercial
Lt. Gov. Joe Kernan brought good news to Knox County Thursday, joining members of Premium Producers Association and Knox County Development Corporation Chairman Gary Gentry in unveiling the location for a $5-million corn milling plant that should provide up to 30 new jobs. The plant will be located in the U.S. 41 Industrial Park.

"These kinds of things don't happen by accident," said Kernan, who also serves as Commissioner of Agriculture and director of the Indiana Department of Commerce. "It takes a lot of hard work, and a lot of people to do it. It's extraordinary when you recognize the independence of members of the agriculture community that they have been able to come together and work towards a common goal.

"This facility will be a model for other kinds of cooperative opportunities across the state," he added. "I want you to understand that the state is pleased in our ability to participate in this celebration, but it wouldn't be possible without local leadership."
The white-corn milling facility will use food-grade corn to produce a projected 50 million pounds of tortilla flour per year, which will be sold to the Atlanta-based La Chiquita company. The mill will purchase its materials from area corn growers, which could give them better market prices.

Gentry said that 10 acres in the northeast corner of the Industrial Park fronting Elkhorn Road have been set aside for the facility, with an option on an additional 10 acres to the west.

"This project exemplifies what the state and local community can accomplish working together," Gentry said. "PPA looked at a lot of sites in and outside of Indiana for this facility, and their decision to locate here is a real validation of the need and underscores the value of a ready industrial park for prospects in the community."

PPA is a member-owned business venture with 152 shareholders, most of whom live either in Knox County or Lawrence County. Ill. Chairman Louis Rusch, Jr., a Vincennes farmer, stated that pending approval of the business and marketing plans, ground could be broken for the mill in the spring with the operations starting in the spring of 2004.

"As a Knox County farmer and resident, I'm excited about the prospect of a new value-added agribusiness in our own backyard," he said. "This is a tremendous economic development for the area."

Tortilla sales have grown at an annual rate of 12 percent since 1996, and tortilla sales are expected to increase by 50 percent, to over $6.6 billion, by 2004.

"When Knox County began, agriculture was the base foundation of the economy of this county," Gentry said. "And it remains that way today. What we're seeing now is a move into the future."

To help secure the plant for Knox County, the Department of Commerce offered $18,000 from the Skills Enhancement Fund to assist training new employees. It also awarded up to $75,000 in Industrial Development Grant Fund moneys for infrastructure improvements. Also through the federally funded Industrial Development Incentive Program, PPA was offered a low-interest loan of $250,000 to secure capital equipment.

For more information on Knox County, Contact Gary Gentry, 812-886-6993, garygentry@charter.net.

Development News From Southwest Indiana (11/01/02)

$5 Million Corn Milling Plant to Provide 30 Jobs in Knox County