(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
April 17, 2013
INCITEC PIVOT, DYNO NOBEL AND CORNERSTONE CHEMICAL ANNOUNCE MORE THAN $1
BILLION PROJECT IN JEFFERSON PARISH
Project at Cornerstone Chemical site will create 65 new direct jobs and result
in 477 new indirect jobs
WAGGAMAN, La. -- Today, Gov. Bobby Jindal -- along with Dyno Nobel Americas
President Daniel McAtee and Cornerstone Chemical CEO Greg Zoglio -- announced
the companies will invest a combined $1.025 billion for a new ammonia
production facility and related upgrades in Waggaman. Incitec Pivot Ltd., the
Australia-based parent company of Dyno Nobel, will invest $850 million to build
the ammonia plant, providing a commercial foundation for Cornerstone to
continue its planned investment of $175 million in maintenance, upgrades and
infrastructure expansion at its site over a six-year period. The new Dyno Nobel
plant will produce 800,000 metric tons of ammonia per year at Cornerstone
Chemical's Fortier Manufacturing Complex on the west bank of the Mississippi
River in Jefferson Parish.
The project will create 65 new direct jobs by employing 60 new personnel at
Cornerstone Chemical and another five employed at Dyno Nobel. LED estimates the
project will result in another 477 new indirect jobs, for a total of more than
540 new jobs. Salaries for the new direct jobs will average more than $55,700
per year, plus benefits, and the project will retain 441 existing Cornerstone
jobs. In addition, Dyno Nobel estimates construction employment will peak at
750 jobs over the three-year construction period.
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."
Dyno Nobel will develop the anhydrous ammonia plant on a site where an ammonia
plant previously operated before closing more than a decade ago. Cornerstone
already produces acrylonitrile, melamine and sulfuric acid at the Waggaman
complex, and the ammonia plant will be integrated with Cornerstone's existing
"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
Dyno Nobel will begin construction in the second quarter of 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.
"We are excited to welcome the investment by Incitec Pivot to Louisiana," said
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."
"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."
LED's Business and Expansion Retention Group, or BERG, began discussing the
project with Incitec Pivot Limited and Cornerstone Chemical Company in April
2011 and has been working closely on the project with JEDCO, the Jefferson
Parish Economic Development Commission, and Greater New Orleans Inc., or GNO
Inc. To secure the project, the state will offer a competitive incentives
package that will include the Industrial Tax Exemption and Quality Jobs
programs for Dyno Nobel. Cornerstone Chemical will receive a Modernization Tax
Credit of $3 million, payable in five annual installments, along with the
services of LED FastStart(R), the nation's top-ranked state workforce training
program. Cornerstone Chemical also is expected to utilize the Industrial Tax
Exemption and Quality Jobs programs.
"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."
"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," said 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
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 industrial explosives,
fertilizers, related 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 and the
No. 1 supplier of industrial explosives, related products and services in North
America. 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.
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