American Plant Food Corp. has decided to pause its plans to build a new $228 million, 420,000 st/y ammonium sulfate plant at Cornerstone Chemical Co.’s Waggaman, La., complex (GM Oct. 27, p. 1), according to a report by nola.com, citing a statement by the company.
APF said the decision was based on “financial and economic considerations,” with Chief Operating Officer Jerry Bilicek quoted as saying that the company hopes conditions improve and it can restart the project in the future. The Dec. 5 notice came one day before local authorities in Jefferson Parish were to decide if APF would receive a major tax break for the project.
While the Louisiana Board of Commerce and Industry (LBCI) approved a first-year tax break of $3.66 million under the Industrial Tax Exemption Program (ITEP) for APF, local entities that will be impacted can vote on the measures, though ultimately they can be overruled by the LBCI and the governor. The matter was slated to go before the Jefferson Parish Council and Jefferson Parish School Board on Dec. 6.
APF was to source ammonia for the plant from CF Industries Holdings Inc.’s Waggaman ammonia plant (GM Dec. 1, p. 1), and sulfuric acid from Cornerstone.
While the LBCI unanimously approved APF’s request, there was opposition from environmentalists, along with some local residents who complained that the number of employees for the project had varied over time, falling from 100 at the time the project was announced down to 13 and then back up to 28, according to nola.com.
However, APF later explained the project would be built in phases and the company believed it would eventually move up to 100 employees.