Expansion Management

Three Companies Invest Over $1 Billion in Louisiana Ammonia Production

April 17, 2013

“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,” said Govenor Boby Jindal.

Adrienne Selko

Dyno Nobel, Cornerstone Chemical will invest a combined $1.025 billion for a new ammonia production facility and related upgrades in Waggaman, Louisiana. Additionally 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. Incitec

Dyno Nobel is a supplier of industrial explosives and blasting services. Cornerstone is the sole manufacturer of melamine in North America, and a manufacturer of acrylonitrile and inf sulfuric acid. And Pivot manufactures a range of industrial explosives and fertilizers.

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.

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 infrastructure.

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, the nation's top-ranked state workforce training program. Cornerstone Chemical also is expected to utilize the Industrial Tax Exemption and Quality Jobs programs.

"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."

About the Author

Adrienne Selko | Senior Editor

Focus: Workforce, Talent

Follow Me on Twitter: @ASelkoIW

Bio: Adrienne Selko has written about many topics over the 17 years she has been with the publication and currently focuses on workforce development strategies. Previously Adrienne was in corporate communications at a medical manufacturing company as well as a large regional bank. She is the author of Do I Have to Wear Garlic Around My Neck? which made the Cleveland Plain Dealer's best sellers list. She is also a senior editor at Material Handling & Logistics and EHS Today.

Editorial mission statement: Manufacturing is the enviable position of creating products, processes and policies that solve the world’s problems. When the industry stepped up to manufacture what was necessary to combat the pandemic, it revealed its true nature. My goal is to showcase the sector’s ability to address a broad range of workforce issues including technology, training, diversity & inclusion, with a goal of enticing future generations to join this amazing sector.

Why I find manufacturing interesting: On my first day working for a company that made medical equipment such as MRIs, I toured the plant floor. On every wall was a photo of a person, mostly children. I asked my supervisor why this was the case and he said that the work we do at this company has saved these people’s lives. “We never forget how important our work is and everyone’s contribution to that.” From that moment on I was hooked on manufacturing.

I have talked with many people in this field who have transformed their own career development to assist others. For example, companies are hiring those with disabilities, those previously incarcerated and other talent pools that have been underutilized. I have talked with leaders who have brought out the best in their workforce, as well as employees doing their best work while doing good for the world.