Panda Biotech: A Forerunner in the Hemp Fiber Industry
Panda Biotech, a hemp fiber processing operation in Wichita Falls, Texas, has recently received an additional $200,000 from the city council. This funding, aimed at constructing a railroad spur to the factory, is part of the city's ongoing support for what is projected to be the largest industrial hemp processing facility for fiber and cellulose in the United States.
Financial Backing and Project Delays
The total cost for the railroad spur has escalated to $500,000 over four years, necessitating this additional investment. Originally, the city council had committed $150,000 towards it. The project, announced in 2019, faced delays primarily due to the COVID-19 pandemic, impacting its schedule and financial planning.
Employment Promises and Economic Incentives
Under a $2.8-million incentive agreement with the city's Economic Development Corporation (EDC) in 2020, Panda Biotech promised to hire 50 workers. Despite requiring extensions on a $1 million loan included in this package, the company is expected to fulfill its loan obligations shortly, as per Chamber of Commerce President Ron Kitchens.
Construction and Operational Readiness
With construction and machine installation completed, Panda Biotech aims to start processing hemp by the end of 2023. This marks a significant step towards operationalizing the facility, which has garnered attention for its potential impact on the hemp industry.
Hemp Supply: A Regional Challenge
Despite the progress, a challenge remains in sourcing hemp for processing. While the company has issued contracts to local farmers for growing industrial hemp, the exact acreage within a 250-mile radius of Wichita Falls remains uncertain. In 2021, Texas reported only 1,000 acres of hemp cultivation, focused on cannabinoid production rather than fiber.
- Increased financial backing from Wichita Falls city council
- Challenges and delays faced by Panda Biotech
- Employment and economic commitments of the project
- Progress in construction and readiness for operations
- Challenges in sourcing hemp for the facility
