How a Cedar Rapids company's expansion is helping Amazon improve packaging and boost sustainability

CEDAR RAPIDS — Corn grown in Iowa will likely show up at many Americans doorstep the next time they order from Amazon.

Iowa Gov. Kim Reynolds joined city leaders and company officials Wednesday at a groundbreaking ceremony to celebrate a planned $50 million upgrade and expansion to Ingredion's operations in Cedar Rapids. The global company makes sweeteners, starches, nutritional ingredients and biomaterials used in everyday products, including Amazon packaging.

The company will expand the production of specialty industrial starches used in packaging and papermaking to meet growing demand. The starches use corn sourced entirely from Iowa.

Ingredion creates plant-derived, starch-based packaging materials made from corn, which are biodegradable and don't contain harmful chemicals.

“Plant science and chemistry are at the heart of how we innovate. That science allows us to take corn and turn it into everything from sweeteners to sodas to drying agents for sunscreens,” said Rob Ritchie, Ingredion senior vice president of food and industrial ingredients.

Eric Seip, senior vice president of global operations and chief supply chain officer at Ingredion, said the company’s products are consumed by more than 2.3 billion people daily.

Among the largest of its 17,000 customers is International Paper, a major global supplier of paper products and packaging materials.

“More and more these days, cornstarch is being used in corrugated boxes for online orders, produce boxes at your grocery stores and even food boxes at your local pizza place,” Ritchie said.

Amazon is working to reduce packaging waste and increase sustainable materials use.

“For years, many boxes have been sprayed with plastic or petroleum products to make them stronger or more grease resistant,” Ritchie said. “At Ingredion, we are making the next generation of cornstarch polymers that can help shift away from plastics and petroleum to stronger, greener and more sustainable boxes right here in Cedar Rapids.”

All of the corn supplied to the plant comes from Iowa, according to the company.

“We mill it here in Cedar Rapids, and then it shows up on the doorsteps in Amazon orders for people in Cedar Rapids and all around the country,” Ritchie said. “… And as e-commerce and food shipping become bigger parts of the economy, it’s exciting to know that a large portion of that is starting right here in Cedar Rapids.”

Reynolds said the plant processes 45,000 bushels of corn daily, with plans to expand to 65,000 bushels.

“Corn is the soul” of Ingredion, Reynolds said.

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As the leading corn producing state, Ingredion’s investment “will modernize operations, strengthen global competitiveness and create new opportunities for Iowans,” benefiting local farmers and producers, the governor said.

Reynolds touted the state's reputation as a place for business growth and innovation, by lowering taxes and enacting “smart regulations and policies” that supports long term investment.

“It's another powerful example of what happens when companies choose Iowa and double down on that choice,” she said. “It reflects something that I'm incredibly proud of, and that's Iowa's reputation as a place where businesses can grow, families can thrive, and a workforce that's second to none. And I think that was reflected in the longevity of the employees here, and truly the success of this facility.”

Corn has been milled on the site since 1894 under different companies, from Douglas Starch Works to Penford to Ingredion.

“Iowans value relationships. We show up, we follow through and we build things that last,” the governor said. “And we know that when a company grows, our whole state benefits through jobs, through expanded supply chains and through the ripple effects that fuel stronger communities.”

Expansion of Cedar Rapids facility expected to be complete next year

The expansion involves constructing a new 9,000-square-foot facility with electrical upgrades and additional equipment for a cornstarch dryer, storage and bulk loading process company officials said will be more sustainable and efficient, increasing the plant's output by approximately 50 percent.

The expansion project is expected to be completed by the end of 2026.

The Iowa Economic Development Authority in March approved financial incentives to assist Ingredion Inc., with the planned expansion of its Cedar Rapids facility. The state board awarded tax benefits through the High-Quality Jobs program. Ingredion reported the expansion will create four jobs at a wage of at least $32.64 per hour.

The Cedar Rapids City Council also agreed to provide Ingredion standard incentives of a 10-year, 50 percent rebate of increased taxes generated by the project. Based on the investment and estimated value once work is done, the project is expected to generate $5.1 million in total taxes over a 10-year period, of which $750,000 would be rebated to Ingredion.

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Cedar Rapids Mayor Tiffany O’Donnell thanked Ingredion for its long-standing presence in Cedar Rapids and “doubling down on that history” with its new investment.

“Cedar Rapids is all about doing things better, more efficiently, more sustainably, and you are on the same page with that,” O’Donnell told Ritchie.

Comments: (319) 398-8499; tom.barton@thegazette.com