Construction work starts at Iowa Fertilizer Company

20 November 2012 10:16  [Source: ICIS news]

LONDON (ICIS)--Egypt-based Orascom Construction Industries (OCI) announced late on Monday that its wholly owned subsidiary, Iowa Fertilizer Co (IFCo), held a groundbreaking ceremony to mark the start of construction work on its new greenfield nitrogen fertilizer production plant in Wever, Iowa, in the US.

IFCo will be the first world-scale natural gas-based fertilizer plant built in the US in nearly 25 years and will help reduce dependency in imported fertilizers, OCI said.

During the event, IFCo signed an agreement with ANR Pipeline Company, a subsidiary of TransCanada Corporation, covering terms for the long-term transportation of natural gas to the plant.

Agreements were also signed with Citigroup to serve as the lead underwriter of its bond financing issuance, and with Iowa-based McAninch Corporation to undertake the initial earthmoving and grading works at the site.

The Iowa Finance Authority approved the issuance of up to $1.2bn (€936,000) in Midwest Disaster Area bonds by IFCo on 16 November, while the Iowa Department of Natural Resources approved air permits for the new plant in late October.

OCI announced in September that it would build a $1.4bn fertilizer plant in the heart of the US Corn Belt that will produce up to 2m tonnes of ammonia, urea and urea ammonium nitrate (UAN)/year for local customers.

The plant is expected to be completed by mid-2015, according to the company.

($1 = €0.78)

By: Rebecca Clarke
+44 20 8652 3214

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