Construction Begins On $1 Billion Industrial Project In Jefferson Parish, Louisiana
Area Development Online News Desk (08/06/2013)
Australian-based Incitec Pivot Limited’s Dyno Nobel and Cornerstone Chemical began construction on a $1.025 billion project that combines construction of Dyno Nobel’s $850 million ammonia plant with Cornerstone Chemical’s $175 million investment in upgrades and infrastructure expansion at Cornerstone’s Fortier Manufacturing Complex on the west bank of the Mississippi River in Jefferson Parish, Louisiana.
The project will create 65 new direct jobs, with 60 new personnel at Cornerstone Chemical and another five employed by Dyno Nobel. Louisiana Economic Development estimates the project will result in another 477 new indirect jobs, for a total of more than 540 new jobs.
“This site at Cornerstone Chemical met our needs for a number of reasons: a competitive gas price, a responsive government regulatory process, a brownfield site and a professional business environment which combined, makes for a compelling investment in Louisiana,” said Incitec Pivot Limited Chairman Paul Brasher. “This plant will be the benchmark, the standard to which others hold themselves. Waggaman will be the place where other companies come to learn how to operate one of the safest and most-efficient ammonia production plants in the world.”
“This groundbreaking symbolizes the potential brought by the new energy economy in the U.S. Gulf and Louisiana, and along with the Cornerstone team I am excited to welcome Incitec Pivot as a key partner at our site,” said Cornerstone Chemical Company CEO Greg Zoglio. “This project will be the first new ammonia plant built in the state in over 25 years and is a shining example of the changes in Louisiana made possible by the advent of shale gas and a growth-oriented state government. This project will be one of many that will upgrade natural gas and natural gas liquids to value-added chemicals primarily for consumption within the U.S. as we leverage our natural resource advantage to lead the world out of the global recession.”
LED’s Business and Expansion Retention Group worked closely on the project with the Jefferson Parish Economic Development Commission, and Greater New Orleans Inc.
To secure the project, the state offered an incentives package that will include the Industrial Tax Exemption and Quality Jobs programs for Dyno Nobel. Cornerstone Chemical will receive a Modernization Tax Credit of $3 million to be claimed over five years, along with the services of LED FastStart, the state’s workforce training program. Cornerstone Chemical also is expected to utilize the Industrial Tax Exemption and Quality Jobs programs.
“After an extensive and competitive international site selection process to bring Dyno Nobel to Jefferson Parish, we are truly thrilled to watch this project become a reality,” said JEDCO Executive Director Jerry Bologna. “Dyno Nobel’s investment in Jefferson represents the largest project this organization has ever had the pleasure to work on. This new facility will provide a tremendous boost to the economic development of Jefferson Parish, and it truly highlights the diversity of our industries in this community. JEDCO will continue to provide support to the Dyno Nobel team as they begin to build a new addition to our community.”
“Dyno Nobel’s major investment in Waggaman validates the unique business opportunity in Greater New Orleans,” said President and CEO Michael Hecht of Greater New Orleans Inc. “Companies from around the globe are choosing locations like Jefferson because of our unbeatable combination of affordable natural gas, friendly business conditions and high quality of life.”