BATON ROUGE, LA — A new production plant will bring roughly 1,500 new jobs to Louisiana, according to Governor Bobby Jindal. A hefty tax incentive package was offered to secure the deal.
The announcement was made in Baton Rouge on Wednesday, July 10 that EuroChem, a privately held Moscow-based company focused on nitrogen and phosphate fertilizers, will build a new plant in Iberville Parish. They are currently in the process of evaluating two possible site locations, which will be 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,” a press release notes. “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.”
Once approved, the company will begin construction on the new facilities that will focus on the manufacturing and distribution of fertilizer products throughout the U.S.
“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.”
We’re told the project investment is estimated to cost $1.5 billion and will take roughly 4 years to complete. Louisiana secured the investment by offering an incentive package that includes a $6 million performance-based grant to “offset the costs of site infrastructure improvements.”
The company will employ roughly 200 employees at the completed facility, resulting in an annual payroll of $11.6 million. The company also is expected to utilize Louisiana’s Quality Jobs and Industrial Tax Exemption programs.
An estimated 1,378 indirect jobs will be created as well.