(The following press release from Louisiana Economic Development was
received by e-mail and was reformatted. The sender verified the statement.)
LED NEWS RELEASE
FOR IMMEDIATE RELEASE
Dec. 21, 2012
THE MOSAIC COMPANY ANNOUNCES POTENTIAL $700 MILLION AMMONIA PLANT IN ST. JAMES
Fertilizer industry project would result in 53 new direct jobs and an estimated
366 new indirect jobs
ST. JAMES, La. -- Today, Gov. Bobby Jindal and The Mosaic Company's Richard
Krakowski announced Mosaic is beginning front-end engineering and design work
on a potential $700 million ammonia production plant at the company's existing
Faustina site in St. James Parish. The project would create 53 new direct jobs
paying an average of more than $83,000 a year, plus benefits, and LED estimates
an additional 366 new indirect jobs would result from the expansion. An
estimated 1,400 workers would be required for construction of the plant.
Mosaic operates two Louisiana chemical facilities on opposite banks of the
Mississippi River: Faustina on the west side and Uncle Sam on the east side.
Combined, the current facilities employ 379 direct Mosaic employees, who are
supported by 235 contract employees. The project would nearly triple existing
Faustina production of ammonia, with all the new production destined for sister
Mosaic sites in Florida that also manufacture the company's crop nutrient, or
fertilizer, products in Florida.
Gov. Jindal said, "Mosaic could have looked at other states but chose Louisiana
because of our strong business climate, skilled workforce and incredible
infrastructure in the chemical and petrochemical industries. Mosaic said that
they will bring back more ammonia production from overseas. Louisiana not only
has favorable natural gas prices right now, but energy forecasts show the wide
split between the price of oil and natural gas continuing well into the future,
which means there will be more and more companies who want to invest here and
create jobs. It's part of the renaissance that chemical and energy industries
are experiencing right now in Louisiana, and we will continue to make sure we
are fostering an environment where more companies want to invest and create
jobs for our people."
Currently, Mosaic makes phosphoric acid at its Uncle Sam plant, combining
sulfuric acid and phosphate rock shipped to the state from company mines in
Florida and Peru, as well as some imported rock from other sources. The
phosphoric acid is shipped by barge across the river to the Faustina plant,
where chemical processes combining phosphoric acid and ammonia produce
granular, finished fertilizer products for agricultural use. A similar process
occurs in Florida, where Mosaic manufacturing sites are currently importing
ammonia from Trinidad, Russia and the Middle East. Favorable natural gas prices
in Louisiana create a more attractive economic environment for Mosaic to
produce its ammonia requirements rather than depend on overseas sources of
"As the world's leading producer of phosphate and potash crop nutrients,
Mosaic's mission is to help the world grow the food it needs," said Krakowski,
Vice President-Supply Chain. "Our Louisiana operations are vital to that
mission and ammonia is an essential part of our manufacturing processes.
Louisiana is a terrific place to do business, and we've received great support
thus far from state, local and economic development officials. We're eager to
conduct the engineering and design evaluation that will lead to a final
investment decision next year."
Mosaic expects to make its final investment decision in mid-2013, after the
detailed engineering design and cost evaluation of the project are completed.
Construction would start in 2014, with commercial operation of the plant likely
to begin in early 2016. The 53 new direct workers would be hired in phases
LED's Business Expansion and Retention Group, or BERG, began discussions with
Mosaic about the project in December 2011 and was joined by regional and local
economic development partners. To secure the project, the state will offer
Mosaic a Modernization Tax Credit of $3 million, claimed over a five-year
period, and the services of LED FastStart(TM) -- the nation's No. 1-ranked
state workforce training program. In addition, Mosaic is expected to utilize
the state's Quality Jobs and Industrial Tax Exemption incentive programs.
"Mosaic is, and for years, has been a genuine asset and valued contributor to
the economic well-being of St. James Parish," St. James Parish President Timmy
Roussel said. "Through employment of many of our residents as well as their
corporate benevolence and their personnel's involvement in the community,
Mosaic has in large measure set the mark for corporate citizenship. On behalf
of St. James Parish Government, I commend them for being the kind of company
that is truly a community leader. May Mosaic prosper and their good works ever
continue: I am proud to say I was employed by them for 40 years of service."
"Mosaic's decision to stay and expand in St. James Parish represents the
breadth of opportunities in the River Parishes along the Mississippi River,"
said President and CEO Michael Hecht of Greater New Orleans Inc. "With the
retention of hundreds of jobs and the creation of 53 new ones, our greatest job
growth is coming from companies already located in the region. Mosaic's
decision is proof that the River Parishes industrial corridor is booming."
About The Mosaic Company
The Mosaic Company (NYSE:MOS) is one of the world's leading producers and
marketers of concentrated phosphate and potash crop nutrients for the global
agriculture industry. With annual phosphate capacity greater than the next
two-largest producers combined, Mosaic is the world's largest producer of
finished phosphate products and operates a global distribution network of
plants, port facilities, warehouses, and sales offices. The company employs
approximately 8,000 people in eight countries. For more information, visit
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