Midwest Fertilizer Investing $2.8B In Southwest Indiana

The company plans to create up to 185 new jobs at a new state-of-the-art manufacturing plant in Posey County, IN.

Midwest Fertilizer Company LLC plans to build a $2.8 billion state-of-the-art manufacturing plant in southwest Indiana, creating up to 185 new, high-wage jobs in Posey County by the end of 2021. Construction of the major nitrogen fertilizer production plant, located on 220 acres in Posey County, will begin in 2018.

Posey County
In January 2016, Midwest Fertilizer Company LLC 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, IN. Pictured at the signing of the contract in New York are Jens Michael Wegmann, CEO and executive chairman of the Industrial Solutions business area of thyssenkrupp (standing center right) and Fawad A Mukhtar, chairman of Fatima Group (standing center left). In the foreground are Christoph Brewka, president and COO, thyssenkrupp Industrial Solutions USA (right) and Mike Chorlton, president and CEO, Midwest Fertilizer Company (left). (Photo: Midwest Fertilizer)

The new plant will serve farmers throughout Indiana and across the Midwest region. It will be a major source of U.S.-produced fertilizer, working to reverse the need to import nitrogen fertilizers from overseas. In recent years, more than 50 percent of U.S. nitrogen product consumption has been imported. With operations expected to begin in 2022, the facility will produce about 2 million tons annually of ammonia, urea ammonium nitrate solution (UAN) and diesel exhaust fluid (DEF), a diesel engine additive that reduces diesel exhaust emissions.

“Midwest Fertilizer strongly believes Southwest Indiana is the right place to build our state-of-the-art fertilizer plant. We are extremely appreciative of the strong working relationship we have enjoyed with the the state, as well as the overwhelming support from Posey County and southwest Indiana,” said Les Wright, president and chief executive officer of Midwest Fertilizer Company LLC. “Our $2.8 billion manufacturing facility will supply a high-quality, reliable source of fertilizer to farmers in Indiana and throughout the Midwest region.”

The project is one of the largest fertilizer manufacturing investments in the U.S. in more than 20 years. According to economic impact calculations by the Indiana Economic Development Corporation (IEDC), the construction of Midwest Fertilizer’s plant alone is expected to have an economic impact of $425 million and, at full employment, the company’s operations are expected to have a total economic impact of $138.6 million annually on state and local GDP while creating an additional 550 jobs throughout the region to support the expansion.¹

“From regional investments to our long-term plan for improving the state’s network of roads and bridges, Indiana is an active partner with the business community in supporting economic growth,” said Governor Eric J. Holcomb. “I offer my enthusiastic support for Midwest Fertilizer’s plans to advance in southwest Indiana, and I look forward to seeing increased high-quality job opportunities for Hoosiers.”

“We are excited about the progress of Midwest Fertilizer and the support from the state of Indiana,” said Jim Alsop, president of the Posey County Commissioners. “We look forward to the number of jobs Midwest Fertilizer will bring to our community and the economic boom it will provide to the entire Southwest Indiana region.”

Midwest Fertilizer is a new U.S. company to be owned by multinational investors, including Pakistan-based Fatima Group, which is a leader in the south Asian fertilizer industry. The new facility will incorporate the latest technologies to ensure safety for workers, the community and the environment, and has earned support from the U.S. Department of Defense.

IEDC offered Midwest Fertilizer Company up to $2.9 million in conditional tax credits and up to $400,000 in training grants based on the company’s job creation plans. The IEDC also offered up to $300,000 in conditional incentives from the Hoosier Business Investment (HBI) tax credit based on the company’s planned investment. The incentives are performance based, so the company must create jobs and invest in Indiana in order to be eligible to receive incentives.

Indiana is a national leader in manufacturing, with approximately one in five residents employed by the industry and ranking No. 1 in the nation for percent of manufacturing workforce by Business Facilities magazine. Indiana manufacturers have added jobs at a rate of 23 percent since July 2009, ranking No. 2 in the nation for growth.

Relocating Or Expanding Your Business In Indiana

Considering Indiana for your company’s relocation or expansion project? Check out Business Facilities’ Indiana Incentives and Workforce Development Guide.

¹ These calculations were made using a tool developed by the Indiana Business Research Center and uses IMPLAN economic modeling for southwest Indiana. The figures are based on anticipated annual employment levels provided by the company and do not account for incentives offered to the company by Posey County or the local community.