Vigo County is benefiting from about $55 million in new manufacturing over the last year — ranging from extracting carbon black from shredded tires and recycling plastic resins to a new turkey hatchery. That investment translates into about 185 new jobs into the county.

For the three companies – Pyrolyx USA Indiana LLC, Select Genetics and – Vigo County represents their first manufacturing sites in Indiana. For Pyrolyx USA, which is a new joint venture between Pyrolyx AG and ReKlaim, it is also their first venture in the United States. The company has broken ground on a new 60,000-square-foot tire recycling plant in the Fort Harrison Business Park. The plant will be identical to Pyrolyx’s existing plant in Stegelitz, Germany. The plant will extract carbon black, oil and metal from shredded tires to produce raw materials for the rubber and plastics industries.

“We plan to have the facility up and running at full production by March 2019,” said Tom Reed, chief executive officer of Pyrolyx USA. “Once we are in full operation, we expect the facility to employ 55 full-time staff. Next year, we will begin recruiting and hiring staff for the facility, and we very much look forward to working with the Terre Haute community.”

The company in its second year expects to recycle 4 million tires annually. No tires will be shredded on site, instead shredded tires will be shipped into the facility.

“Tires for the Terre Haute facility will be sourced locally,” Reed said. “One of the advantages of our process is that we help provide good end markets for the companies that collect and process end of life tires. To be clear, our facility does not take whole tires. We are using shredded rubber, which is derived from end-of-life tires. Our supplier for the Terre Haute facility is J&R Used Tire Service in Danville, Illinois. J&R collects and process tires from both Illinois and Indiana.”

Reed said Terre Haute/Vigo County was selected as the company’s first manufacturing site for several reasons.

“Indiana, Ohio, and Illinois are home to a large portion of the tire, rubber, and plastics industries in the US,” Reed said. “By my count, there are at least 10 tire manufacturing facilities in those three states. Terre Haute provides an excellent, centralized location to serve customers in these states. In addition, Terre Haute’s proximity to good transportation infrastructure, including I-70 and the local rail service, make it attractive from the transportation cost perspective.

“Lastly, Terre Haute and the vicinity are home to several major universities, which provide for both a well-trained work force as well as potential technical collaboration opportunities,” Reed said.

The $24 million plant — to be built at 4150 E. Steelton Ave. — is financed through economic development solid waste facility revenue bonds. The Terre Haute Economic Development Corporation and the Terre Haute City Council approved of the bond issue under the terms of the federal Internal Revenue Code of 1986 and loan the proceeds to Pyrolyx to finance the project. A city ordinance sets an annual interest rate cap of 10 percent and notes that the bonds would be “special and limited obligations” payable solely by Pyrolyx.

“The bonds and the interest rate thereon do not and shall never constitute an indebtedness of, or a charge against, the general credit or taxing power of the city,” the ordinance reads.

As part of an incentive, funds from a tax increment finance district at the business park will be used to upgrade a rail line and add a rail spur for Pyrolyx USA and upgrade a road crossing at Steelton Avenue.

Select Genetics

At the Vigo County Industrial Park, Minnesota-based Select Genetics is constructing a 120,000-square-foot turkey hatchery.

The new company was formed through a merger of Valley of the Moon Commerical Poults and Willmar Poultry. Aviagen Turkeys, owner of Valley of the Moon, is the majority owner of Select Genetics. Aviagen is a top supplier of turkey breeding stock worldwide.

The company is to invest at least $20 million and create 100 new jobs. The company purchased 40 acres of land in the Vigo County Industrial Park for $1 an acre, part of an incentive to attract the company.

The Indiana Economic Development Corporation offered Select Genetics performance-based incentives, including up to $400,000 in conditional tax credits and up to $150,000 in training grants based on the company’s job creation plans. Vigo County will provide $1.5 million for utility and infrastructure needs.

Sandi Hofmann, spokeswoman for Aviagen Turkeys, said Vigo County/Terre Haute stood out for many reasons for its new facility.

“First we wanted to select a community that would attract high quality people and one that demonstrated that we were welcome. There were many communities that expressed interest and Terre Haute was the best fit,” Hofmann said.

“Another very important criteria was proximity to our customers. Indiana is home to one of our important customer-partners, Farbest Foods, one of the largest turkey producers in the U.S.,” Hofmann said. “Indiana turkey production is growing due to companies such as Purdue Farms and especially Farbest Foods,” which has a facility in Vincennes.

Additionally, the Select Genetics hatchery “will also be centrally located to many customers in bordering states such as Illinois and Michigan,” Hofmann said.

“This facility is a turkey hatchery; eggs are brought from the farms and placed in the incubators to begin the four-week process of hatching turkey eggs. After 27 days of incubation, the eggs are transferred to hatchers that are designed to give the newly hatched poults the best environment to become strong and healthy turkeys (newly hatched turkeys are called poults instead of chicks),” Hofmann said.

The turkey eggs for the Vigo County hatchery will be produced from Select Genetics’ farming facilities in Illinois, Michigan, Missouri, Minnesota and North Carolina, Hofmann said. “The poults that hatch will be delivered to customers across the U.S., but primarily to our customers in Indiana, Illinois, Michigan, and Missouri,” Hofmann said.

Verdeco Recycling

Verdeco Recycling first eyed Vigo County in 2013, but began operations in June 2016.

“We had a soft start in June and July of 2016, and then began full product production,” said Rick Blakesley, chief operating officer for Verdeco Recycling.

The plant is capable of producing 60 million pounds of FDA-approved, food-grade, recycled PET. “We are capable of that and hit that rate most of the time,” Blakesley said.

The company, which now employs 32 workers, gets its materials to recycle from the United States, Canada and Mexico.

Verdeco Recycling manufactures FDA-approved polyethylene terephthalate resins using a proprietary “state-of-the-art” processing technology. Instead of using high pressure and vacuums for extended periods of time (which is typically done by PET recycling processes), PET-M™ process uses a Silane-based modifying agent to restore physical and mechanical properties of post-consumer PET, according to the company’s web site.

Utilizing all new manufacturing extrusion equipment and conveying systems, Terre Haute is the company’s second U.S. plant. The first was in South Gate, California, near Los Angeles, operating since 2012.

In Vigo County, Verdeco Recycling is occupying a manufacturing-specific speculative building owned by Garmong Development at the Vigo County Industrial Park, 10535 James Adams St.

Garmong constructed the 86,000-square-foot building in 2009 to attract industry to the industrial park. The was building was formerly used by Pfizer as a pharmaceutical grade structure with extensive HVAC system, overhead crane and office area.

“I believe the company liked that building from the moment they saw it. They were looking for something nice and not looking for a pole barn type structure,” said Steve Witt, president of the Terre Haute Economic Development Corp.

“The company first came to visit the industrial park in June of 2013,” Witt said. “The company’s original plant is in the Los Angeles area, which I had the opportunity to visit in 2014.”

The California-based company in 2014 received a tax abatement to install $5,701,329 in manufacturing equipment and $96,400 in information technology equipment. The company began operations in June 2016 and was fully staffed by the end of August 2016.

“It took some time for this, but that is not unusual for projects to come together in the entirety,” Witt said.

Blakesley said geography and the Garmong building were factors to locating in Terre Haute.

“The strengths of this plant is it is in the center of the dart board. The interstates all come to Indianapolis and you can get anywhere quickly,” Blakesley said. “The biggest driver was the building was correct. We needed height and power and the building had both. If the type of building had not been there, we would not be in Vigo County.”

Blakesley added that the company also enjoyed a “very cooperative” environment with the building owner, mechanical and electrical contractors and efforts of local government and the Terre Haute Economic Development Corp.

“It has been a very seamless and helpful situation and we would do it all again. I would tell that to anybody who calls us,” he said.

Article source: Tribune Star