By MICHELE F. MIHALJEVICH
Indiana Correspondent NORTH MANCHESTER, Ind. — Local corn growers will benefit from a new ethanol plant scheduled to open next year near North Manchester, company and government officials said last week.
Groundbreaking for the $130 million plant was Friday at a 200-acre site three miles south of North Manchester in Wabash County. The facility will be operated by POET of Sioux Falls, S.D.
“This day is a long time in coming,” said Les Templin, Wabash County commission chairman. “There are opportunities for jobs in construction, support, operations. Farmers will benefit with reduced transportation costs and they can sell their corn for premium prices.
“We see POET and this plant as a good fit for this community.”
The facility, scheduled to open next summer, will produce 65 million gallons of ethanol a year and use 21 million bushels of corn annually. The plant will also produce about 178,000 tons of premium Dakota Gold Enhanced Nutrition Distillers Products annually.
“This plant would be considered a medium-size plant in the industry,” said Nathan Schock, POET public relations director. “The last few plants we’ve built have been this same size. Because of increased demand for ethanol, the average size is getting bigger.”
Company officials research the availability of corn in an area before deciding to build a plant there, Schock said.
“Most of our corn will come from a 35-mile radius of the plant,” he said. “The very first thing we look at in an area is the availability of a favorable corn supply. We won’t go to a place that doesn’t have an adequate corn supply.”
Area farmers can expect to see an improvement in corn prices of $3 million to $6 million annually, the company said.
Once the plant hires a general manager, a grain buyer will be hired to begin meeting area farmers, Schock said. “This will be good for the farmers because the nearby ethanol plant will be the final destination for their grain,” he said. “Their transportation costs are reduced significantly.”
The company will be a good partner for the town and county, said Bill Konyha, president of the Economic Development Group of Wabash County.
“We’re beginning to see the benefits of our asset-based economic development,” he said. “We’re tickled to death to have them here.”
The facility will employ about 40 and have a $2 million annual payroll, Schock said.
North Manchester’s town manager said the company’s interest in the area gave the town and county a chance to be opportunity seekers and not just problem solvers.
“This gives us a chance to make some advances in an area we’ve struggled with for years, and that’s bringing new development to the county,” said Dan Hannaford. “When the company first approached us, we thought it was an excellent idea.”
The plant will bring much-needed jobs to a rural community, said Ken Klemme, assistant director of economic development for the Indiana State Department of Agriculture.
“In addition, this helps create an increased local demand for farm products,” he said. “We know POET is going to be a great corporate citizen and neighbor in the community.”
POET is the largest dry mill ethanol producer in the United States.
The company has 20 ethanol plants in the U.S., with seven more planned or under construction. In addition to North Manchester, POET has Indiana plants in development in Portland and Alexandria. It also has plants under construction in Ohio in Fostoria, Leipsic and Marion. A plant in Caro, Mich., opened in 2002.
This farm news was published in the July 18, 2007 issue of Farm World, serving Indiana, Ohio, Illinois, Kentucky, Michigan and Tennessee. |
