Segetis seeks $21 million from IRRRB for big project


Segetis, a Golden Valley-based biochemical company, is planning a $105 million expansion to Hoyt Lakes on the eastern Iron Range. They’re asking for $21 million in support from the Iron Range Resources and Rehabilitation Board at its April 22 meeting. The promise: 545 jobs and $55 million in annual economic impact.

That appears to be total regional economic impact, not just from the plant itself. UPDATE: I’ve heard job figures that are closer to 50-100 jobs at the plant itself, although we are talking about high income jobs.

The IRRRB explains the project in the following press release:

EVELETH, Minn.—Iron Range Resources and Rehabilitation Board (IRRRB) Commissioner Tony Sertich today announced that the IRRR Board will meet on Tuesday, April 22 in St. Paul to consider funding a major biochemical industry project.

The board will consider $21.2 million in funding to Segetis, Inc. for the construction of a commercial-scale plant at the Laskin Energy Park in Hoyt Lakes, Minn. Segetis is a renewable biochemical company producing high performance, sustainable materials, reducing the world’s dependence on fossil fuel-based petrochemicals. Their bio-based technology platform is used in flexible plastic products, cleaning products, and a variety of other consumer goods. Total project investment is $105 million, 70% of which will be funded by the company.

The Segetis project is forecasted to have an annual $55 million economic impact on the region, supporting over 545 jobs, according to an independent study from the University of Minnesota Extension Center for Community Vitality.

According to Sertich, the Segetis project is an ideal fit for the Iron Range and would help position the region as a leader in the biochemical economy. He said, “By partnering with Segetis, we will be putting our flag in the ground as a region interested in developing a cluster of biochemical businesses willing to use our wood resources, improve our environment and create good jobs on the Iron Range.”

Atul Thakrar, CEO of Segetis, said, “We are excited about being a part of catalyzing the biochemical industry cluster in the Iron Range. This project means we will be the first to start developing sustainable manufacturing in this region using locally sourced feedstock.”

He added, “This project has been made possible with the strong support of IRRRB and the City of Hoyt Lakes. We look forward to building a long-term partnership.”

In other business, the board will consider several infrastructure projects that will accommodate business expansions.

Speak Your Mind


This site uses Akismet to reduce spam. Learn how your comment data is processed.