Early next year, the board of directors for St. Louis-based agrochemical giant Monsanto will make a final decision on a potential $1 billion investment to expand its St. Charles Parish operations in Luling, company officials and Gov. Bobby Jindal announced this morning.
If the Monsanto board decides to go forward with the investment, the company could spend more than $1 billion over the subsequent three to five years to support its Roundup Ready Xtend Crop System, officials say. In addition to its Roundup herbicide business, Monsanto is a leading producer of genetically engineered agriculture seeds.
Louisiana Economic Development estimates that the investment would create 95 new direct jobs with an average wage of $76,500 per year, plus benefits. It would also retain the existing 645 employees at Monsanto’s Luling facilities. The company estimates development of the project would generate 1,000 construction jobs at peak building activity.
“We have a long and successful partnership with St. Charles Parish and Louisiana,” says Monsanto President and COO Brett Begemann in a news release. “Our Luling facility is a logical site uniquely positioned at the center of Monsanto’s manufacturing network, with convenient access across the Americas where the Roundup Ready Xtend Crop System has a fit. The state’s highly skilled workforce and business-friendly environment also put Louisiana at the top of our list for this potential expansion.”
LED says it began formal discussions with Monsanto about the potential expansion project in March. The state is offering Monsanto a performance-based Modernization Tax Credit of $5 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. The company also would receive workforce development assistance through LED FastStart, and it is expected to benefit from the Louisiana’s Quality Jobs and Industrial Tax Exemption programs. The quality jobs exemption provides for a cash rebate of up to 6% of the company’s payroll for new jobs for 10 years. The industrial exemption offers a full abatement of local property taxes for a decade on new capital investment.
