4 days ago
Tariffs delay AgroRenew production plant project, says CEO
VINCENNES, Ind. (WTWO/WAWV) — We are learning more about the new manufacturing facility opening of AgroRenew, a bioplastics manufacturer in Knox County.
According to a news release from AgroRenew, the company is committed to sustainability and innovation. The 196,000 square-foot facility (701 E. Elkhorn Rd. Vincennes, IN) will serve as AgroRenew's first production plant and will house both corporate headquarters and full-scale manufacturing operations.
While the company remains fully committed to the project and the region, unforeseen circumstances have introduced challenges to the construction timeline.
AgroRenew, the country's first purpose-built bioplastic processing facility, is coming to Knox Co.
According to AgroRenew, they have 'encountered unexpected costs associated with purchasing specialized process equipment from European source companies , which is essential for production.' They added that a recently imposed tariff has added a 50% surcharge on this equipment, significantly increasing total project expenses and impacting the projected timeline.
'Our operation depends on three critical elements aligning: the timely arrival of our equipment, the completion of our building, and preparation for the harvest season,' said Brian K. Southern, Founder & CEO at AgroRenew. 'Each factor is deeply interconnected—we cannot install equipment without a finished building, we cannot construct the building without knowing the equipment specifications, and we cannot begin operations outside harvest season.'
According to AgroRenew, to remain on track for a Fall 2026 production start, they must receive the equipment by February 2026, allowing time for installation and operational testing ahead of harvest in August 2026.
'However, this is only possible if the current tariff is lifted in time. The company has formally applied for a tariff waiver and remains optimistic that it will be granted. The exemption would allow the project to move forward without further delays or budgetary strain,' AgroRenew noted in their news release.
Turning waste into profit | AgroRenew announces $83M investment in Knox County
Despite these challenges, the company remains optimistic and continues to work closely with local and federal partners to resolve the tariff issue, coordinate construction timelines, and ensure readiness for harvest.
'We're building more than just a plant—we're building a long-term commitment to this community,' says Southern. 'We appreciate the patience and support of Knox County residents and partners as we navigate these final hurdles.'
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
