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Russia's EuroChem to invest $1.5 billion in ammonia-urea complex in Louisiana
3:06 PM MDT | July 10, 2013 | Natasha Alperowicz
EuroChem (Moscow), Russia’s largest fertilizer producer and 1 of the top 10 global fertilizer makers, today announced its intention to build an ammonia and urea production complex in Louisiana to manufacture and distribute fertilizer products in the United States and other markets. The project is expected to cost approximately $1.5 billion and will involve a 4-year construction period. EuroChem expects to finalize its decision on the parameters and location of the facility within the next year. The move represents the latest in the company’s expansion plans. EuroChem recently acquired BASF’s fertilizer assets at Antwerp and is investing heavily in Russia.
"The Americas accounted for approximately a quarter of our sales in 2012, and we expect its contribution to continue to grow. 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," said Dmitry Strezhnev, CEO of EuroChem.
“With continued momentum from our vast energy resources, our top-notch infrastructure, and world-class workforce, Louisiana is leading the nation and the world in attracting major industrial expansions. EuroChem embodies why we’re performing at such a high level. As one of the world’s largest fertilizer companies, EuroChem recognized that our mix of peerless resources and a rapidly improving business climate make Louisiana the ideal place for business investment in the world. We’re delighted that our existing employers are expanding and becoming more efficient and productive by the day and that world-scale investors are coming to Louisiana from as far away as Australia, Japan, South Africa, and now Russia. This project will continue our goal of providing outstanding careers for our current workforce and our children and grandchildren for years to come,” said Governor Bobby Jindal.
EuroChem and Louisiana Economic Development (LED) officials have been working together on the planned construction of EuroChem's plant in Louisiana since 2012. To secure the project, the state has offered EuroChem a competitive incentives package, including a number of tax exemptions. According to LED estimates, once completed the plant is expected to generate approximately 200 new jobs and over 1,300 jobs in related sectors. In addition, during the 4-year construction phase, the company is expected to employ approximately 2,000 new construction workers.
Established in 2001, EuroChem has grown into one of the world’s leading nitrogen and phosphate-based fertilizer producers and it is developing two major Greenfield potash projects in Russia, which will provide more than 8 million m.t./year of potash capacity. In 2012, EuroChem’s revenues reached $5.4 billion and the company is approaching a global top-5 position among fertilizer companies. EuroChem is already well established in the Americas with sales offices at Tampa, FL; and São Paulo.