American farm co-operative CHS Inc. confirmed this week that it will begin construction on a $3 billion fertilizer manufacturing plant at Spiritwood, North Dakota.
The plant, the largest single investment in CHS’s history, will produce nitrogen fertilizer to farm retailers in North and South Dakota, Minnesota, Montana and Canada.
In a Sept. 5 news release, CHS said the facility will be operational by 2018 will employ 160 to 180 people after completion.
The plant will be capable of producing more than five million pounds of ammonia per day, which will be converted to agricultural fertilizers and other products.
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CHS first announced intentions to build a fertilizer plant in September 2012. The project was later postponed when construction and labour costs exceeded initial estimates.
“CHS is a financially strong company with the balance sheet strength to undertake this significant investment,” Tim Skidmore, CHS chief financial officer said in a statement.
“We believe this fertilizer plant will deliver solid returns on our owners’ investment in addition to providing them with an essential crop input.”
Spiritwood is located about 275 km south of the Canada-United States border.
CHS said it will be the sole funder to start but will look for partnerships.
The co-operative expanded its farm retail presence in Western Canada last year when it signed an agreement with Crop Production Services (Canada) Inc., a wholly owned subsidiary of Agrium, Inc., to acquire 16 retail agronomy locations in Alberta and Saskatchewan.
