LAPLACE – Gov. Bobby Jindal and EuroChem CEO Dmitry Strezhnev announced an exciting opportunity recently that will create thousands of new jobs in the state, possibly
in the River Parishes area.
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 Louisiana Economic Development 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.
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.
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, Fla., and São Paulo, Brazil.
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.
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.”