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Penford expansion a logical, positive move
The Gazette Opinion Staff
Feb. 9, 2012 11:25 pm
I support the proposal that Penford purchase park land from the city and expand its manufacturing facility for fermentation products. Such an effort is a natural extension of activity for a corn wet-milling company that has starch as the energy source. Many competitive companies are into fermentation and some actually started that way. One can make many commercially valuable alcohols, vitamins, nutrients and other food products.
While at predecessor Penick and Ford during the 1970s when R.J. Reynolds owned the company, fermentation was seriously considered but high-fructose corn syrup was the hot button issue then and a major investment was not pursued, partly because the U.S. Justice Department was constantly after RJR to divest Penick. This eventually happened and the company was sold to Univar Corp.
Penford has been a good corporate citizen since its founding in the early 1900s, particularly during the Great Depression when work hours were cut back but no one was laid off.
Now that the administration has suggested that part of its market is in decline, it seems reasonable that a new venture to not only save the current facility but expand into new products and expanded employment is a logical move to be encouraged.
As Carl Kesler told me when I was first employed by Penick in 1958, it is better to save more than one string to your bow. Penford is considering such a move. I hope the city encourages it.
Kenneth Kirby
Cedar Rapids
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