Texas hemp fiber processor’s journey: Delays, hopes, and future prospects

The anticipation surrounding Panda Biotech's pactory

Texas-based fiber processor Panda Biotech has been in the spotlight for its ambitious plans to set up a hemp processing factory. After a series of delays, the company has now confidently stated that it will complete the setup of its factory and commence hemp processing by the end of 2023.

CEO's assurance and vision

Blake Carter, the CEO of Panda Biotech, shared that the company is nearing the completion of construction and equipment installation at its Wichita Falls site.

Carter emphasized the significant opportunity that lies ahead, especially for local farmers. He mentioned, "The greatest opportunity has been for Panda to issue large volume contracts to farmers in our region who have been waiting for the opportunity to plant more acreage of industrial hemp."

Panda is currently in the process of sourcing baled hemp fiber and contracting with farmers for future supplies.

History of delays

Despite the current optimism, Panda Biotech's journey hasn't been smooth. The company made headlines in 2019 with its announcement to establish the "Largest Industrial Hemp Processing Facility for Fiber and Cellulose in the United States."

However, the project faced multiple setbacks. Initial plans to start operations in January 2021 were postponed, and a subsequent target date in October 2022 was also missed. These delays led Panda to seek extensions and renegotiate terms with the city of Wichita Falls, especially concerning hiring commitments tied to a $2.8-million incentive agreement from 2020.

Financial backing and challenges

Panda Biotech has garnered significant support in the form of loans, bond issues, and tax breaks, amounting to over $100 million. This backing was primarily for the factory's establishment, reflecting the high stakes and expectations associated with the project. However, questions about the company's viability have been raised, especially considering the challenges of hemp cultivation in Texas's climate.

Commitment to quality

Despite the challenges, Panda Biotech remains committed to delivering high-quality hemp products.

Carter highlighted that the company has "custom-configured the flow of the processing and refining equipment" to produce "traceable, clean, textile-grade hemp fiber." The processing capacity of the equipment being installed is impressive, capable of handling 10 tons of hemp per hour.

A journey filled with twists and turns

• December 2019 - Panda Biotech's ambitious announcement about its hemp processing facility.
• July 2020 - Initial plans for a factory in Shallowater, Texas, were abandoned due to inspection failures. The focus shifted to Wichita Falls.
• September 2020 - The company revealed plans to invest $110 million in the Wichita Falls facility, aiming for an early 2021 launch.
• January 2021 - The first delay in the startup of the decortication facility was announced.
• June 2021 - Panda withdrew its application for a $100 million state bond issue.
• August 2022 - Another delay was announced, pushing the factory's opening from October 2022.
• March 2023 - An equity partnership deal was struck with the Southern Ute Indian Tribe Growth Fund.
• August 2023 - Panda requested a three-year extension on its hiring promise to the Wichita Falls Economic Development Corporation.

Looking ahead

As Panda Biotech continues its journey, the hemp industry and local communities watch with bated breath. The company's success could pave the way for a thriving hemp industry in Texas and beyond. With the end of 2023 in sight, all eyes are on Wichita Falls, anticipating the launch of a facility that promises to revolutionize the hemp processing landscape.