Jindal announces another fertilizer plant set for the region
Governor Bobby Jindal and EuroChem CEO Dmitry Strezhnev announced yesterday EuroChem has committed to build an ammonia and urea production plant in Louisiana to manufacture and distribute fertilizer products in the U.S. and other markets. The project will create 200 new direct jobs, resulting in an annual payroll of $11.6 million and an estimated 1,378 new indirect jobs according to LED estimates. The project investment is estimated to be $1.5 billion and traditionally requires four years of construction work, which can yield approximately 2,000 new construction jobs.
Governor Jindal said, "EuroChem's decision to invest in our state is another great example of Louisiana's strong and growing economy. With continued momentum from our vast energy infrastructure, strong business climate and world class workforce, Louisiana is leading the nation and the world in attracting major industrial expansions. As one of the world's largest fertilizer companies, EuroChem recognized that our mix of resources makes Louisiana the best place in the world for business investment. We're proud that world-scale investors like EuroChem are coming to Louisiana from all over the globe, and this project will continue our goal of providing outstanding careers for our people for years to come."
Formed as an agrochemical company in 2001, EuroChem built and acquired strategic mining and manufacturing assets to become one of the world's leading fertilizer manufacturers. With $5.4 billion in revenue in 2012, EuroChem is approaching a global top five position among fertilizer companies. Based in Moscow, EuroChem has developed its facilities to date in Western Europe and Russia and has focused on nitrogen and phosphate fertilizer products. The Louisiana facility will operate in the nitrogen category and serve as both a manufacturing and distribution center. EuroChem's Louisiana project represents its first manufacturing facility in the Americas, though the company is already established with farmers and industrial consumers in the market through trading offices it operates in Tampa, Florida, and São Paulo, Brazil.
"The Americas accounted for approximately a quarter of our sales in 2012 and we expect its contribution to continue to grow," said Strezhnev, the EuroChem CEO. "We therefore see it as a next logical step to establish our production closer to our customers. Louisiana brings together all the right ingredients – from its favorable political and economic environment to the availability of energy, labor, infrastructure and logistics – to fulfill our strategic vision in one of the world's largest agricultural markets."
The state began meeting with EuroChem about a potential Louisiana manufacturing and distribution project in August 2012. To secure the project, the state offered the company a competitive incentives package that includes a $6 million performance-based grant to offset the costs of site infrastructure improvements. In addition, EuroChem will receive the services of LED FastStart® – the nation's top-ranked state workforce training program. The company also is expected to utilize Louisiana's Quality Jobs and Industrial Tax Exemption programs.
EuroChem is evaluating two final sites for its Louisiana plant. The company's purchase of one state-owned site, located in Iberville Parish, is subject to approval by the Natural Resources committees of the Louisiana Legislature. That property has been on the market for more than two years through the Office of State Lands, and EuroChem has deposited $12 million in an escrow account to buy the property, subject to the committee votes. EuroChem also has secured an option to purchase a private-sector property in St. John the Baptist Parish. Both Mississippi River sites are being evaluated for construction and logistics suitability, and the company will make a final site decision within the next year.
A privately held company based in Moscow, EuroChem formed in 2001 with the goal of becoming a leading global agrochemical company. Through acquisitions and organic growth, EuroChem has grown into one of the largest global companies in the sector. With its core business centered on nitrogen and phosphate fertilizers, EuroChem is developing two sizable potash projects in Russia that will provide more than 8 million metric tons of annual potash capacity. EuroChem employs 20,000 people worldwide and continually focuses on the quality of its people and physical assets, reinvesting significant cash flow into the business and adhering to international standards of governance and sustainability. For more information, visit www.eurochem.ru.