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CF Industries Plans $2.1 Billion Expansion in Donaldsonville, Louisiana, Nitrogen Complex

Area Development Online News Desk (11/05/2012)
CF Industries, a nitrogen and phosphate fertilizer manufacturer, plans a $2.1 billion expansion at its Donaldsonville, Louisiana, nitrogen complex in a project that will create about 93 jobs.

CF Industries said the project will allow it to retaining 349 existing jobs and create 250 contractor jobs. Louisiana Economic Development also estimates 686 indirect jobs will result from the project, in an expansion that will boost the efficiency and output of nitrogen derivatives principally used by the agricultural fertilizer industry.

Governor Bobby Jindal said, “Today’s project is great news for the Capital Region and our entire state because it will help our families and agriculture industry thrive. CF Industries could have invested in another state, but they chose to expand here because of our strong business climate, abundant supply of natural gas, world class infrastructure and incomparable workforce.”

“This announcement is great for the Capital Region and our entire state. CF Industries has done business in Louisiana for the last 50 years, and we’re proud they’re expanding in our state to produce valuable fertilizer compounds that help our farmers and agriculture industry thrive,” he added. “CF Industries could have invested in other states but they chose to build here in Louisiana because we have a great business climate, a strong transportation infrastructure and the best workers in the world.”

CF Industries, based in Deerfield, Ill., operates seven nitrogen facilities in the U.S. and Canada. The Donaldsonville, La., site is the largest nitrogen complex in North America. Covering 1,400 acres, the Donaldsonville complex produces anhydrous ammonia, urea, and urea ammonium nitrate, the three nitrogen-based products most heavily used by agricultural, industrial and other markets.

The company said it is investing in the Donaldsonville Nitrogen Complex to take advantage of a location with five major natural gas pipelines and multiple modes of transportation. The Louisiana expansion will enable CF Industries to increase its product capacity and to enhance the flexibility of its product mix for customers.

“As a longtime corporate citizen of Louisiana, CF Industries is pleased to increase its commitment to the state and to Donaldsonville in particular,” said CF Industries Senior Vice President W. Anthony “Tony” Will. “Our Donaldsonville complex, already the largest in North America, has been a key source of nitrogen nutrient products since 1966, supplying American farmers who have a major role in feeding the world. We have had a great working relationship with the State of Louisiana and look forward to bringing more investment capital, jobs and revenue to the state.”

To secure the expansion, the state offered CF Industries an incentive package that includes a $3 million Modernization Tax Credit, payable over five years; a performance-based, $2 million Economic Development Loan Program award that’s forgivable if the company meets payroll targets; and the services of LED FastStart workforce training program. In addition, the company is expected to utilize the state’s Quality Jobs and Industrial Tax Exemption incentive programs.

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