Monsanto will make a $975 million capital investment adding new production technology that supports the launch of its Roundup Ready Xtend Crop System at its production center in Luling, Louisiana.
Upon completion of the expansion project, the Luling site is expected to supply about one-third of the eventual market demand for dicamba-based products. Dicamba, along with glyphosate, is the active weed-control ingredient in the Roundup Ready Xtend Crop System.
According to company officials, the Luling site will play an important role in helping farmers produce better harvests and meet the global demand for food, with initial use of the new product in soybean and cotton crops. After completion in 2019, the Louisiana expansion project will create 95 new direct jobs.
“Monsanto is proud to celebrate this important milestone today,” Monsanto Executive Vice President & Chief Strategy Officer Kerry Preete. “This expansion represents the single largest capital investment in Monsanto’s self-manufacturing history and reinforces the confidence our company’s leadership has in our Luling team and the commitment to the local community.”
Monsanto and the State of Louisiana announced the company’s preliminary plans to expand the Luling site in June 2015. In April 2016, Monsanto’s board of directors authorized the final investment leading to the launch of construction this month. The new investment follows a previous $200 million expansion completed by Monsanto in Luling in 2010. During the next decade, Monsanto expects to launch its Roundup Ready Extend Crop System in the U.S., Brazil and other parts of Latin America, meeting growing demand across 250 million acres of farmland in the Americas.
“This new product is another tool that will assist farmers in fighting resistant weeds,” Louisiana Commissioner of Agriculture & Forestry Mike Strain. “The Louisiana Department of Agriculture and Forestry will require training provided by Monsanto to ensure the proper use of this product. From an agricultural standpoint, our producers are always looking for ways to enhance sustainable production. From an economic standpoint, Monsanto continues to invest in Louisiana. It’s an investment that will bring additional jobs to the area.”
To secure the project, the State of Louisiana is providing Monsanto a performance-based Modernization Tax Credit of $3.75 million, along with a performance-based $1.7 million Economic Development Award Program grant to reimburse some rail and electrical upgrade costs associated with the expansion. The company will receive the comprehensive solutions of LED FastStart®, the nation’s top-ranked state workforce development program, and is expected to utilize Louisiana’s Quality Jobs and Industrial Tax Exemption programs.
“Monsanto’s decision to expand with such a significant investment demonstrates the strength of the River Parishes as an optimal location for industrial businesses and an unwavering commitment to our community,” said Michael Hecht, President & CEO of Greater New Orleans, Inc." GNO, Inc. congratulates Monsanto on today’s groundbreaking, and we look forward to working with Monsanto to ensure their continued success.”