NEED FOR MORE LAND JEOPARDIZES PLAN FOR GRAIN PLANT IN PADUCAH

Grain Processing Corp. of Muscatine, Iowa, may have to look for a new location.

Industrial recruiter Mitch Robinson hopes it will be in Cape Girardeau.

The grain processing company, which produces alcohol, poultry feed, starch for the paper industry and a number of other products made from corn, apparently selected Paducah, Ky., for an expansion project which would eventually provide more than 800 jobs to that community.

However, the Greater Paducah Economic Development Council (GPEDC) has not found the 900 acres of land needed by the company. Sources say the family-owned company favored Paducah, but has been asking questions about property along the Ohio River in Southern Indiana in case the Paducah site falls through.

Meanwhile, Robinson, executive director of the Cape Girardeau Area Industrial Recruitment Association, says that amount of land can be obtained in this area.

Robinson has made this information available to the grain processing company.

The Southeast Missouri Regional Port Authority has also submitted a program of its services to the Iowa-based company.

A spokesperson from GPEDC said Wednesday that efforts were continuing to obtain an additional 500 acres of land in the vicinity of an available 400 acres.

When Grain Processing first started talking with GPEDC officials, the project was smaller in scope, requiring about 400 acres, which was available to the GPEDC. The property in question was owned by the Illinois Central Railroad and Paducah Water Works, both of which agreed to sell.

As the company's expansion plans developed, more land was needed, up to 900 acres, noted Paducah officials. The 500 additional acres sought by the GPEDC include tracts ranging from seven to about 100 acres, but owners of the property do not want to sell.

In terms of economic impact, say GPEDC officials, the plant, in addition to its payroll would buy nearly $100 million a year in grain from area farmers.

A $5 million harbor and extensive conveyor systems would be built for handling barge traffic and grain. A number of highway and rail improvements would also be required.

In Paducah the company would center its expansion and new product areas, employing production workers at $12 to $14 an hour, or more, as well as research and development staff.

Grain Processing indicated it would spent $250 million in the first phase of the project, employing 150 people. Within five years the company expected to invest another $150 million which would increase to about one billion dollars within the first decade. Jobs would also be increased to as many as 800.

The company employs 800 people at its Iowa plan, and produces more than 100 products from corn.