Through its subsidiary Cormo USA, the Freiburg based Cormo AG specializing in transforming cornfield waste into sustainable products is expanding its footprint on American grounds. In collaboration with a Florida-based partner, the startup will invest $29.5 million to establish its first U.S. production plant in Indiana. The new facility will create 250 new, high-wage jobs by the end of 2023.
Cormo AG is a Freiburg based startup offering new sustainable solutions from Corn. The company developed and patented the process for turning corn-field waste into a 100% sustainable peat moss substitute (TEFA) for the agricultural industry and foam products (BABS) for material science use such as air filters. In 2016, CORMO set up a production facility in Alsace (France) to test the production-scale solutions for raw material harvesting and processing. The pilot was successful.
Building on this success, Cormo AG together with the Florida-based Sustainable Projects Group Inc. established Cormo USA as a joint venture in 2018. The subsidiary serves as a stepping-stone for expansion in the U.S. As the first step, Como USA has announced to establish a new production plant in Indiana. The expansion to enables the company to leverage Indiana’s significantly larger corn production volume and contributing to positive economic and sustainable developments.
Cormo AG and the Sustainable Projects Group will invest $29.5 million in the plant, constructing and equipping a state-of-the-art facility on 10 acres in the Commerce Park at Rushville. The new facility will process maize straw from up to 150,000 acres of corn fields each year into a 100 percent sustainable peat moss substitute (TEFA) for agricultural uses and foam products (BABS) for material science uses. Moreover, the strategic move will result in job creation. More than 250 new, high-wage jobs will be provided by the end of 2023.
Subject to approval of the Indiana Economic Development Corporation (IEDC) Board of Directors, the IEDC will offer Cormo USA up to $3.5 million in conditional tax credits based on the company’s job creation plans. These incentives are performance-based. Thus, the company is not eligible to receive incentives until jobs are created. The city of Rushville is considering additional incentives.
Cormo USA joins a network of more than 950 international business establishments operating in Indiana, including 38 Swiss businesses, including Autoneum, Nestlé, Kuehne + Nagel and Roche.
(Press release/RAN)
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