JEFFERSONVILLE — One Southern Indiana today announced Layn USA, the U.S. subsidiary of Chinese company Guilin Layn Corp., has signed a purchase and sales agreement (PSA) with the River Ridge Development Authority and will commence due diligence to evaluate the parcel as the location for a new CBD manufacturing facility, according to a 1si news release.

The proposed project would have the capacity to process a minimum of 5,000 tons of hemp biomass annually.

Layn has been partnering with farmers who have been growing hemp since the Farm Bill passed in 2014. These partnerships allow Layn to begin production of CBD products from large scale farming operations using cutting edge cultivation techniques within both organic and conventional certified hemp.

This evening, the River Ridge Development Authority Board of Directors passed a measure allowing Executive Director Jerry Acy to move forward with securing the PSA for the project. This allows negotiations to begin for approximately 24.6 acres within the River Ridge Commerce Center, a potential building site of the proposed $52 million project. The company has considered several sites in a number of states including Colorado and Kentucky. Layn will make their final decision following the completion of due diligence.

“Layn has been cultivating in the plant industry for more than 20 years,” Elaine Yu, president of Layn USA, stated in the release. “It has partnered and carried out business with hundreds of food and beverage, health and nutrition, pharmaceutical, cosmetic, personal care and animal nutrition companies in more than 60 countries and regions around the world. Layn is working with many of these manufacturers to meet the demands for applications of industrial hemp and the development of new hemp-based businesses.”

“We are pleased that the board has demonstrated such expediency and cooperation in approving this agreement and helping to ensure these negotiations can smoothly move forward,” Frank Xie, EVP, Board Director of Guilin Layn Natural Ingredients Corp. stated. “We look forward to continuing to work with 1si and The River Ridge Development Authority Board as we complete our full due diligence in securing the ideal location for Layn’s new CBD production facility.”

“Layn USA would be a great addition to the River Ridge Commerce Center, and we’re very pleased they are considering River Ridge for their new processing facility,” Jerry Acy, executive director for the River Ridge Development Authority, stated. “With companies here such as Enjoy Life Foods and Niagara Bottling, which also make natural products, and the recent additions of PharmaCord and Medline Industries Inc., it shows River Ridge is the place to be for the industries of the future.”

The manufacturing of hemp is still new to Indiana. On March 26, 2014, Gov. Mike Pence signed the Industrial Hemp bill into law, IC 15-15-13, authorizing the Office of Indiana State Chemist & Seed Commissioner to obtain the necessary permits and authorizations for the production and regulation of industrial hemp in Indiana.