Monsanto Planning $975M Manufacturing Complex Expansion
- Apr 18, 2016
Luling, La.—Monsanto is expanding its manufacturing complex in Luling, La., with a planned $975 million capital investment over the next three years in its St. Charles Parish operations.
The investment will enable Monsanto to support the launch of its Roundup Ready Xtend Crop System.
“Investing in this expansion opportunity makes a lot of sense in terms of business strategy,” Sam Oliver, Monsanto supply chain global dicamba lead, told Commercial Property Executive. “We continue to hear from farmers that they need more tools to help control weeds. We expect rapid adoption of the Roundup Ready Xtend Crop System, which is our next-generation weed control technology, and this expansion will help us produce the global demand needed.”
When completed in early 2019, the Louisiana expansion project will create 95 new direct jobs. During the next decade, the company expects to launch its Roundup Ready Extend Crop System in the U.S., Brazil and other parts of Latin America.
Back in 2010, Monsanto completed a $196 million expansion at Luling, which boosted production of agricultural herbicides by approximately 20 percent.
“Luling offers a great opportunity in terms of scale, existing infrastructure, and a business friendly environment,” Oliver said. “The facility is located in the epicenter of our global supply chain network with convenient access to the 250 million acres of opportunity across the Americas.”
According to research conducted by the Louisiana Economic Development, once completed, the Luling site is expected to supply 25 percent to 35 percent of eventual market demand for dicamba-based products.
To secure the project, the State of Louisiana will provide Monsanto a performance-based Modernization Tax Credit of $3.75 million, along with a performance-based $1.7 million Economic Development Award Program grant to reimburse rail and electrical infrastructure costs associated with the expansion.
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