Nov 14, 2019Corteva to invest $145M in Midland, Michigan, plant
Wilmington, Delaware-based Corteva Inc. has announced its board of directors has approved a $145 million capital investment in the company’s Midland, Michigan, manufacturing facility to expand global capacity for the Company’s high-demand insect management technology for the natural products market.
The capacity expansion project was initiated in response to a consistently high demand for Corteva’s spinosyns products, including Spinetoram and Spinosad. Staged to come online over the next few years, the new production will enable Corteva to increase its existing Spinosyns capacity by 30% – addressing the needs of customers in the more than 100 countries into which these solutions are sold around the world for use on more than 100 different crops. This investment is expected to generate more than $100 million of annual EBITDA for Corteva once fully online.
“(The Oct. 31) announcement underscores our commitment to taking targeted actions that are good for our customers and help to drive sustainable results for business,” said Susanne Wasson, Corteva Crop Protection Business President. Wasson continued, “This investment enables Corteva to better serve our customers around the world by expanding access to much-needed insect management solutions.”
Produced through a proprietary natural fermentation process, the Spinosyns products line, which includes Spinosad and Spinetoram products are naturally derived solutions that provide farmers with effective and natural insect-control options.
Both Spinosad and Spinetoram have been awarded the U.S. EPA Green Chemistry Challenge Award – which recognizes novel chemistry solutions that incorporate the principles of green chemistry into chemical design, manufacture and use.
The global insecticide market is estimated at $14.5 billion and is expected to grow at a 3% compound annual growth rate (CAGR). Today, Corteva is a leader in the insecticide market and has a number one position in naturally derived insecticides.
Corteva Inc. is a publicly traded, global pure-play agriculture company that provides farmers around the world with the most complete portfolio in the industry – including a balanced and diverse mix of seed, crop protection and digital solutions focused on maximizing productivity to enhance yield and profitability.
With some of the most recognized brands in agriculture and an industry-leading product and technology pipeline well positioned to drive growth, the Company is committed to working with stakeholders throughout the food system as it fulfills its promise to enrich the lives of those who produce and those who consume, ensuring progress for generations to come. Corteva became an independent public company on June 1, 2019 and was previously the Agriculture Division of DowDuPont. More information can be found at www.corteva.com.