Midwest eyes mid-year groundbreaking – Alert
Midwest Fertilizer Co. LLC has entered into an agreement with thyssenkrupp Industrial Solutions (USA) Inc. to design and build a state-of-the-art nitrogen fertilizer manufacturing facility in Posey County, Ind., at an agreed aggregate price in excess of $2.0 billion, with financial close expected in mid-2016. The contract awarded to thyssenkrupp covers Engineering, Procurement, Construction (EPC) and related services. Construction will start after the financial close. The facility is expected to be fully operational in 2020.
“thyssenkrupp is a world leader in fertilizer plant technology,” said Mike Chorlton, Midwest president and CEO. “This partnership allows us to move forward with the next phases of this world-class project in southwest Indiana.” Midwest’s facility will produce ammonia, urea, UAN and diesel exhaust fluid.
“Thanks to Posey County’s business friendly environment, we are on the path to provide farmers in Indiana and the Midwest a reliable local source of high-quality nitrogen fertilizer,” said Chorlton.
The fertilizer plant is expected to generate more than 2,500 construction jobs over a three to four year period and approximately 200 permanent employment opportunities. Once completed, the fertilizer plant will provide local production for the farmers in the Eastern Corn Belt.
The principal sponsor and developer of the project is Pakistan’s Fatima Fertilizer Co., a part of Fatima Group. Fatima Group is one of the leaders in the fertilizer industry and has diverse manufacturing businesses in fertilizer, textiles, sugar and energy. Since selecting thyssenkrupp to supply a fertilizer production plant in 1973, Fatima’s fertilizer business and thyssenkrupp continue to work as partners.
The project will be partially funded by an already secured $1.259 billion of tax-exempt debt borrowed by Midwest and facilitated by Posey County under the Heartland Disaster Tax Relief Act of 2008. The remaining funds will be comprised of equity, tax increment-financing bonds, and some term debt.
Fawad A Mukhtar, chairman of Fatima Group, expressed great satisfaction with this next level of partnership with thyssenkrupp and stated “we are confident that Midwest Fertilizer Company’s success will open up avenues for further progress and development in southern Indiana.”
The thyssenkrupp Industrial Solutions business area has been in the business of engineering and construction of nitrogen fertilizers plants for over 80 years. In the past 20 years, the company has built 19 ammonia plants and 21 urea plants as well as completed 9 ammonia and 6 urea expansion projects. Three of the world’s largest ammonia projects use the company’s technology. thyssenkrupp is also a supplier in the field of nitrates with more than 200 nitric acid plants using its technologies worldwide. Overall, the company says it has successfully realized more than 2,000 chemical plants.