Yeast maker may build Cedar Rapids plant

A multinational company with affiliate operations in southwest Cedar Rapids is considering the community for a $6.5 million pilot plant.

Lesaffre Yeast Corp. is part of the Lesaffre Group, based in Lille, France. Lesaffre is a global provider of yeast, yeast extracts, and other fermentation and related products.

The pilot plant would produce yeast and has the potential to create four jobs.

Lesaffre Yeast does not own a facility in Iowa, but two affiliated companies - Red Star Yeast and Bio Springer North America - operate plants in southwest Cedar Rapids near the Archer Daniels Midland corn processing plant.

The Cedar Rapids City Council will consider sponsoring a state financial assistance application for investment tax credits. The Cedar Rapids Metro Economic Alliance assisted in preparing the state application, which will be sent to the Iowa Economic Development Authority.

Pending approval of the application by the Iowa Economic Development Authority Board and a final decision by Lesaffre Yeast, construction of the pilot plant would begin in early 2015.

Red Star Yeast, a joint venture of Archer Daniels Midland and Lesaffre Group, began operations in May 2010. The plant was expanded in 2011 to support increased demands for specialty yeast products used in extract, ethanol, nutritional, feed and other emerging markets.

Red Star Yeast is the largest yeast plant in North America. It uses 100 percent corn syrup - supplied by Archer Daniels Midland - instead of molasses as the raw material for the growth of various commercial yeast products.

Bio Springer North America chose Cedar Rapids for a yeast extract facility in 2007, investing more than $55 million and creating 30 jobs. The plant began operations in October 2010.