17 July 2013
Russian fertilizer company, EuroChem, is to build an ammonia and urea production plant in Louisiana to manufacture and distribute fertilizer products in the US and other markets.
Construction is expected to take four years and cost approximately $1.5bn.
Approximately 2,000 new construction workers will be employed during the construction phase and once complete 200 direct new jobs are expected to be generated from the plant and over 1,300 jobs in related sectors.
As GCR reported earlier this year, unprecedented shale gas production has sparked an industrial building boom in the state of Louisiana, as manufacturers rush to take advantage of cheaper energy and chemical feedstock.
CEO Dmitry Strezhnev (EuroChem)
CEO of Eurochem, Dmitry Strezhnev, said called the move "the next logical step" since the Americas accounted for around a quarter of Eurochem’s sales in 2012.
"Louisiana brings together all the right ingredients, from its favorable political and economic environment, to the availability of energy, labour, infrastructure, and logistics, to fulfil our strategic vision in one of the world’s largest agricultural markets," he said.
EuroChem and Louisiana Economic Development officials have been working together on the planned construction of EuroChem’s plant since 2012 and the state has offered EuroChem a competitive incentives package, including a number of tax exemptions.
EuroChem will make a final decision on the structure and location of the facility within the next year.