18 September 2013 20:15 [Source: ICIS news]
HOUSTON (ICIS)--Fertilizer producer CF Industries (CF) has received a series of tax incentives for the expansion of its Port Neal facility, Iowa officials confirmed on Wednesday.
The investment in the Port Neal project is estimated at $1.7 bn (€1.3bn) and is anticipated to have an eventually capacity of 849,000 tons of ammonia and 1.35m tons of urea. Construction is set to begin before the end of the year.
Illinois-based CF’s objective is to have expanded capacity within the key corn growing region of the US and once fully operational will have two ammonia and nitric acid plants and three committed to urea, as well as UAN production.
The Woodbury County board approved a 20-year sliding scale for the CF property valuations at Port Neal, which gives 100% exemption of the added property valuation beginning in 2016, when the expansion work is set to be completed. The exemptions drop by 4.4% per year through 2035, at which time it will be at a 16% level.
Per the agreement, the producer must invest at least $595m in property valuation and bear the cost of the railroad line infrastructure improvements that have been deemed necessary at the facility.
In return the county has agreed to pay for the cost of a new one mile access road pending approval by the state of a $4.2m grant. The county said it will return to CF the county’s portion of the natural gas replacement tax during the 20-year period of the tax exemption schedule.
($1 = €0.75)
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