New $1.7 Billion Project Largest Capital Investment in Iowa History
By Rod Boshart, Reporter
The new offices for the Cedar Rapids Metro Economic Alliance are in what was once the IMAX theater at the former Science Station in downtown Cedar Rapids on Monday, July 2, 2012. The group moved into the new offices early that day. (Cliff Jette/The Gazette-KCRG TV9)
By
Liz Blood
Story Created:
Nov 1, 2012 at 4:57 PM CDT
Story Updated:
Nov 1, 2012 at 10:30 PM CDT
SIOUX CITY, Iowa - Iowa officials announced Thursday the approval of state incentives to land a project in northwest Iowa with a total capital investment of $1.7 billion that will create 100 new jobs with a qualifying wage of $20.12 an hour.
The Iowa Economic Development Authority Board awarded direct financial assistance and tax credits to CF Industries, Inc., for an expansion of its existing fertilizer manufacturing operation in Woodbury County.
The Port Neal project will add new state-of-the-art ammonia and granular urea production units to meet customer demand, according to Gov. Terry Branstad’s office. The project will supplement existing production of ammonia and urea ammonia nitrate.
The Iowa Economic Development Board awarded the project $1.5 million in direct assistance and tax credits in the total amount of $22 million. The tax credit award is made up of $13 million in sales tax refunds paid during construction and $9 million in investment tax credits. The board also will consider future amendments to the award to allocate an additional $12 million in investment tax credits ITC in each of the next four fiscal years (through fiscal 2016) for a potential total award of $57 million in state investment tax credits.
“This is another great announcement for Iowa, and we are proud that CF Industries has chosen us for its $1.7 billion expansion,” Branstad said in a statement. “Our state is clearly well-positioned to take advantage of the growing domestic fertilizer industry. Not only does that mean significant investment that will continue to grow our economy, but also the creation of high-paying jobs for Iowans.”
CF Industries is a global leader in fertilizer manufacturing and distribution, the second largest nitrogen fertilizer producer in the world and the third largest phosphate fertilizer producer among public companies. CF Industries owns and operates world-scale nitrogen and phosphate plants and serves agricultural and industrial customers through its best-in-class distribution system.
In 2010, CF Industries acquired Terra Industries Inc., positioning the company as a nitrogen bellwether in the global fertilizer industry and the premier nitrogen and phosphate fertilizer manufacturer in North America. In addition to its Port Neal facility, the company operates terminals at Spencer and Garner.
“With today’s announcement that a company with current operations in Iowa will make a capital investment of nearly $2 billion, it is obvious that we are on the right track to reaching our goals of creating jobs and increasing wealth for Iowans,” said Lt. Gov. Kim Reynolds. “Just since January 2011, the IEDA has projects under contract that will result in $5.23 billion of capital investment in our state.”
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