Dyno Nobel America breaks ground on multi-million dollar project in Jefferson Parish

Leaders from a global chemical company officially broke ground on a new industrial project in Jefferson Parish Monday morning. 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., joined Dyno Nobel America, and parent company Incitec Pivot Ltd., to celebrate this significant event.

Dyno Nobel America started building an $850 million ammonia production facility at Cornerstone Chemical Company’s Fortier Manufacturing Complex in Waggaman Monday. The global leader in the chemical industry 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 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.”

“Watching Dyno Nobel break ground in beautiful Jefferson Parish is a dream come true for this community,” Parish President John Young said. “So many people have played a role in bringing this project to fruition, collaborating on local, regional and state levels to attract this global industry leader to Jefferson. This groundbreaking further confirms that the West Bank is well-positioned to accommodate this type of investment and it demonstrates Jefferson’s ability to attract, grow and create new jobs. We look forward to a longtime relationship with Dyno Nobel.”

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.

“Dyno Nobel’s major investment in Waggaman validates the unique business opportunity in Greater New Orleans,” added Michael Hecht, President and CEO 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.”

“We are proud to be a part of the Waggaman community, Jefferson Parish and the State of Louisiana,” said Incitec Pivot Chairman, Paul Brasher. “We are excited for the positive economic impact this plant will have.  This site at Cornerstone Chemical met our needs for a number of reasons, but the one asset that stood out above all others was the people of Louisiana and Jefferson Parish.”

Gov. Jindal said, “Today’s groundbreaking launches an important manufacturing project for Louisiana’s economy that will continue helping us compete in the global marketplace. These companies collaborated here because they recognize the great value and reward of investing in Louisiana and our extraordinary workforce and infrastructure. Like Incitec Pivot, Dyno Nobel and Cornerstone Chemical, companies across the world are choosing to invest here because we are working to make Louisiana the best place in the world to invest and create jobs.”

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.

“Waggaman will be the place where other companies come to learn how to operate the safest, most efficient and cleanest ammonia production plant in the world,” Brasher said. “We studied and used the world’s two most efficient and cleanest plants as the model for the starting point of our facility. This proposed facility will incorporate state-of-the-art technology, making it one of the safest, most reliable and most energy-efficient plants in the world—setting a new standard in clean ammonia production not only for the U.S. but also for 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.”

Dyno Nobel America expects to begin ammonia production in 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.

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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 19^th 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.