IBJNews

Minnesota company to launch iron ore plant in Indiana

Back to TopCommentsE-mailPrintBookmark and Share

A Minnesota company plans to invest up to $350 million in Indiana to build a plant that will produce iron ore pellets used in the production of steel.

Magnetation LLC of Grand Rapids, Minn., will build its plant at the site of an abandoned VeraSun Energy Corp. ethanol plant in Reynolds, about 30 miles north of Lafayette. Work to demolish existing infrastructures has already begun.

Magnetation President Matt Lehtinen told The Journal & Courier the company has secured its financing and expects to pour its first foundation early this month. The plant is expected to begin operating in late 2014.

The plant is expected to bring 115 jobs by the summer of 2014 but currently has 25 employees.

Lehtinen says the project has energized the White County community, which saw a plan by former Gov. Mitch Daniels to turn Reynolds into a hub of bioenergy fizzle out.

Daniels in 2005 dubbed Reynolds BioTown USA and pledged to make the farming community the first U.S. community to meet all electricity and gas needs through renewable energy. Progress has been slow and has been hampered by changes in market conditions and financial problems among some developers.

"We're actually amazed by the enthusiasm and the work ethic of all the various stakeholders and contractors involved," Lehtinen said. "(The community) has been very welcoming and (the process) relatively painless, if you will."

White County Commissioner John Heimlich said many people have expressed interest in the new venture and the jobs it will bring.

"A lot of people are talking about it," Heimlich said.

The iron ore pellets produced at the plant will be shipped to Ohio-based manufacturer AK Steel, which has invested about $200 million in Magnetation LLC.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
ADVERTISEMENT