(Avondale, La) — A global leader in the chemical industry officially announced plans to partner with a major Jefferson Parish company Wednesday. The Jefferson Parish Economic Development Commission (JEDCO), in conjunction with Governor Bobby Jindal, Jefferson Parish President John Young, the Parish Council and Greater New Orleans, Inc., welcomed Dyno Nobel America, and parent company Incitec Pivot Ltd., to Jefferson Parish during a press conference at JEDCO’s administrative facility in Avondale.
Dyno Nobel America will begin building an $850 million ammonia production facility at Cornerstone Chemical Company’s Fortier Manufacturing Complex in Waggaman. The global industry leader chose the site based on a number of factors, including Cornerstone’s successful record of strategic alliances. Cornerstone currently partners with several chemical manufacturers, but they plan to leverage investment from other companies to broaden their global reach.
The new anhydrous ammonia plant will be built on a site where an ammonia plant once operated more than a decade ago. Dyno Nobel’s new facility will be integrated with Cornerstone’s existing infrastructure. This major partnership will create a combined investment of more than a billion dollars. The new ammonia facility will provide a commercial foundation for Cornerstone to continue a planned investment of $175 million in maintenance, upgrades and infrastructure expansion over a six-year period.
The combined investment will create 65 new direct jobs at an average salary of $55,700 and will retain 441 jobs at Cornerstone. It will also employ over 470 people indirectly. In addition, Dyno Nobel estimates construction employment will peak at 750 jobs over the three-year construction period.
JEDCO has worked closely with Jefferson Parish leaders and Greater New Orleans, Inc. to prepare an incentive package for the project. The negotiations will result in $45 million in revenue to the parish over the company’s first 20 years of operation.
“After an extensive and competitive international site selection process, we are thrilled to see this project come to fruition,” said JEDCO Executive Director Jerry Bologna. “In terms of capital investment, this represents the largest project this organization has ever had the pleasure to work on. This investment will be a tremendous boost to the economic development of Jefferson Parish and highlights the diversity of our industries.”
“It is truly an exciting day for Jefferson Parish,” Parish President John Young said. “This is one of the largest economic projects to come to Jefferson Parish in recent years. I attribute the attraction of this global industry leader to the strong collaboration among local, regional, and state organizations. This further confirms that Jefferson Parish’s West Bank is well-positioned to accommodate this type of investment, and demonstrates that Jefferson continues to attract, grow, and create new jobs. We couldn’t be happier to welcome Dyno Nobel to our community.”
Jefferson Parish continues to remain the economic engine of the region with a distinct competitive advantage found in its transportation assets, proximity to the Mississippi River and reliable workforce. The business-friendly environment fostered in Jefferson Parish provides businesses with access to the tools they need in order to grow and experience success.
Gov. Jindal said, “Dyno Nobel’s new ammonia facility in Jefferson Parish is proof of Louisiana’s outstanding business climate, top-notch workforce and first-class energy infrastructure – including our state’s affordable and abundant supply of natural gas. Louisiana is uniquely positioned to provide major supplies of natural gas to critically important energy and chemical manufacturers, and more and more companies are taking notice and investing right here in our state. But they’re not just coming here for our resources. Companies from around the globe are locating operations in Louisiana because they recognize we have a world-class workforce capable of getting results. We’re confident that this new facility will help us continue to build on our state’s energy and chemical manufacturing legacy, all while we move our economy forward by providing more great jobs for our people.”
“Greater New Orleans, Inc. is delighted to welcome the development of Dyno Nobel’s new ammonia production facility in Waggaman, which was made possible through a partnership with Cornerstone Chemical,” added Greater New Orleans, Inc. President and CEO Michael Hecht. “This announcement proves again that Louisiana’s combination of unparalleled logistics, Top 10 business climate and affordable natural gas makes it an unbeatable location for large industrial projects.”
The new Dyno Nobel plant will also incorporate state-of-the-art technology to produce the lowest air pollution of any ammonia facility to date. This will become the benchmark for other ammonia plants around the world.
“Incitec Pivot Limited and its U.S.-based operations, Dyno Nobel, are pleased to announce the construction of a world-class ammonia facility in Waggaman, Louisiana,” said Incitec Pivot Managing Director and CEO James Fazzino. “This plant will set a new standard in clean, efficient ammonia production and will provide a significant economic benefit to the state and regional communities. We are honored to be a part of the Waggaman, Jefferson Parish and Louisiana communities.”
“We are excited to welcome the investment by Incitec Pivot to Louisiana,” said Greg Zoglio, the Cornerstone Chemical CEO. “The U.S. Gulf Coast economic model has changed due to the advent of advanced drilling and extraction techniques and the associated impact on natural gas pricing. Incitec Pivot’s foresight of this paradigm shift, coupled with the brownfield offering by Cornerstone Chemical Company and project support provided by the State of Louisiana, will allow the resurgence of world-class ammonia production in the state.”
Dyno Nobel’s contractor, KBR, will begin construction in the second quarter 2013, with initial ammonia production beginning in mid- to late 2016. Hiring of plant management will take place in 2014, followed by additional hiring as the commissioning of the plant approaches in 2016. The new Dyno Nobel plant will produce 800,000 metric tons of ammonia per year in Jefferson Parish.
About Incitec Pivot
Incitec Pivot (ASX: IPL), an ASX Top 50 company, is a leading global company that manufactures, markets and distributes a range of chemical products and services to customers around the world. A leader in its chosen markets, Incitec Pivot holds a portfolio of recognized and trusted brands and is the No. 1 supplier of fertilizers in Australia. Employing approximately 5,000 people, Incitec Pivot owns and operates manufacturing plants in Australia, the U.S., Canada, Turkey, Mexico, Chile and Indonesia, and has joint venture operations in South Africa, Malaysia and China.
About Dyno Nobel
With headquarters in Salt Lake City, Dyno Nobel is the North American market leader in supplying industrial explosives and blasting services. The company adheres to safety standards among the highest in the commercial explosives industry. Dyno Nobel employs more than 3,000 people internationally and operates 10 manufacturing facilities. Dyno Nobel traces its roots back to the 19th century and the discovery by Alfred Nobel of nitroglycerin-based dynamite. Today, Dyno Nobel serves customers in the mining, quarry, construction, pipeline and geophysical exploration industries.
About Cornerstone Chemical Company
Cornerstone, based in Waggaman, La., is a leading manufacturer of key intermediate chemicals that are used in diverse industrial and consumer applications, including aerospace, automotive, water treatment, oil recovery, agriculture, plastics, furniture and flooring, and performance coatings. Cornerstone is the sole manufacturer of melamine in North America, a leading manufacturer of acrylonitrile in the U.S. and a top supplier of sulfuric acid in the Gulf region. Located on an 800-acre site just outside New Orleans, Cornerstone safely operates a world-class, highly synergistic manufacturing facility near the Mississippi River. Known for its high-quality products, Cornerstone is recognized worldwide for its reliability as a critical global supplier of intermediate chemicals.