Monsanto planning expansion in LouisianaMonsanto planning expansion in Louisiana
Luling facility will undergo upgrades to support company's largest seed technology platform.
April 13, 2016
Monsanto Co.’s board of directors this week gave final approval for a capital expenditure to expand the company’s Luling, La., manufacturing site. The expansion — a $975 million capital investment that is expected to be operational in three years — should enable the company to deliver a strong dicamba formulation pipeline to growers and further strengthen its integrated solutions platform.
Monsanto is investing in dicamba manufacturing at the site to support the launch of its Roundup Ready Xtend Crop System. Upon anticipated completion of construction in mid-2019, the Luling facility is expected to supply 25-35% of the fully mature demand for the dicamba product, a key component of the Roundup Ready Xtend Crop System.
“With more than 60 years of commitment to the Luling community, we are proud to move forward with this facility expansion and play a role in the economic well-being of southern Louisiana,” said Brett Begemann, Monsanto president and chief operating officer. “Our Luling facility’s unique geographic location within our manufacturing network will help provide our farmer customers across the Americas with better access to a critical weed management tool.”
During the next decade, the Roundup Ready Xtend Crop System is expected to launch across the U.S., Brazil, Latin America and other world areas. Ensuring an adequate and cost-effective supply of dicamba chemistry is critical to successfully meeting growing customer demand, which could represent 250 million acres of farmland opportunity across the Americas, Monsanto noted.
The expansion of the Luling facility is expected to add about 100 full-time employees and 20 contractors to the site. Louisiana Economic Development also estimates that the project will result in an additional 450 new indirect jobs in the state, for a total of about 550 new jobs.
“Agribusiness and chemistry represent two of the most important business sectors in our state, and this major manufacturing investment by Monsanto strengthens each of these key industries,” Louisiana Gov. John Bel Edwards said. “We’re encouraged by Monsanto’s vote of confidence in Louisiana as a great place to do business and a vital part of its manufacturing operations. Above all, we’re delighted that hundreds of existing jobs will be secured by this expansion and that we will grow the workforce of Monsanto with new career opportunities for more Louisiana families.”
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