AgroRenew Faces Setback as Tariffs Stall Equipment Purchase, Delay Construction

VINCENNES, Ind. (We Are Knox County) - Construction on AgroRenew’s new corporate headquarters and bioplastics production site is being temporarily delayed.

In a press release sent Thursday morning, the Knox County-based company said newly imposed tariffs have added 50% to the cost of key equipment needed for operations.

The specialized equipment is sourced from Europe.

“We cannot install equipment without a finished building, we cannot construct the building without knowing the equipment specifications, and we cannot begin operations outside harvest season,” the company said.

The company says it’s goal is to begin operations in Fall 2026, but for that to happen, equipment must arrive by February 2026.

The company says it recognizes how important the facility is to the area and it is working with local and federal officials to resolve current challenges.

“We’ve applied for a tariff waiver and are optimistic the 50% tariff will be waived in time, however, we won’t know for sure for another 2–3 months,” the statement read.

Founder and CEO Brian Southern announced plans for the $83 million, 196,000-square-foot facility in November 2023.

A groundbreaking ceremony was held in June 2024 at its future location on Elkhorn Road in Vincennes.

Once operational, AgroRenew will transform agricultural waste—such as watermelon, cantaloupe, and pumpkin residues—into biodegradable plastic resins.

These resins can be used to make food containers, packaging, and other plastic products that are renewable and environmentally friendly.

You can read more about AgroRenew on it's website.