Nov. 1, 2019
Corteva, Inc. announced its Board of Directors has approved a $145 million capital investment in the Company's Midland, Mich. manufacturing facility to expand global capacity for the Company's high-demand insect management technology for the natural products market.
The capacity expansion project was initiated in response to consistently high demand for Corteva's Spinosyns products, including Spinetoram and Spinosad. Staged to come online over the next few years, the new production will enable Corteva to increase its existing Spinosyns capacity by 30% - addressing the needs of customers in the more than 100 countries into which these solutions are sold around the world for use on more than 100 different crops. This investment is expected to generate more than $100 million of annual EBITDA for Corteva once fully online.
"Today's announcement underscores our commitment to taking targeted actions that are good for our customers and help to drive sustainable results for business," said Susanne Wasson, Corteva Crop Protection Business President. Wasson continued, "This investment enables Corteva to better serve our customers around the world by expanding access to much-needed insect management solutions."
Produced through a proprietary natural fermentation process, the Spinosyns products line, which includes Spinosad and Spinetoram products are naturally derived solutions that provide farmers with effective and natural insect-control options.
Both Spinosad and Spinetoram have been awarded the U.S. EPA Green Chemistry Challenge Award - which recognizes novel chemistry solutions that incorporate the principles of green chemistry into chemical design, manufacture and use.
The global insecticide market is estimated at $14.5 billion and is expected to grow at a 3% compound annual growth rate (CAGR). Today, Corteva is a leader in the insecticide market and has a number one position in naturally derived insecticides.