09 October 2012

IFFCO and La Coop fédérée plan to establish $1.2 billion fertilizer plant in Québec, Canada

Québec City - 09 October 2012 - Indian Farmers Fertiliser Cooperative (IFFCO) and La Coop fédérée today announced an agreement of intent to establish a nitrogen fertiliser plant in Bécancour. The $1.2-billion investment, will allow production and marketing of fertiliser. The investment will generate around 500 construction jobs and over 200 post completion jobs in the community. The plant's construction is targeted to begin in 2014, once the various permits have been approved and the production of fertilizer is targeted to begin in 2017. 

This announcement assumes significance in the context of the International Summit of Cooperatives, which is being held in Québec City, bringing together more than 2,000 decision-makers from the cooperative and mutual movement around the world. 

IFFCO chose the Bécancour industrial park site due to its strategic location, its access to a port, railway and natural gas pipeline. The possibility of a partnership with La Coop fédérée, an agriculture cooperative society, interest of North American farmers and the proactive role played by the Government of Québec were also decisive factors. 

"This investment allows two large agricultural cooperatives (La Coop fédérée and IFFCO) from two large agricultural economies, to play a vital role in a rapidly-changing agricultural industry," explained Dr. U.S. Awasthi, Managing Director and CEO of IFFCO. 

"For our government, this industry, and all the regions where it is progressing, represents a major source of collective wealth. We must rely on prosperous regions offering quality jobs. This is why the Gouvernment du Québec is proud to support this industry, which ultimately will allow the creation of more than 200 quality jobs in Bécancour. The materialization of the IFFCO project, in partnership with La Coop fédérée, also illustrates the importance that our government attaches to the meeting of economic development players and the creation of a hospitable environment for sustainable development in every region of Québec," mentioned the Minister for Industrial Policy and the Banque de développement économique du Québec, Élaine Zakaïb. 

La Coop fédérée will act as co-investor in this transaction and will distribute the product in its vast network of more than 175 stores of several regions of Canada. "We are very proud that IFFCO has chosen to call on La Coop fédérée's recognized expertise. Together, we will be able to extend, even more spectacularly, the principles of shared benefits that drive the cooperative movement. When the product is launched, all Québec and Canadian agricultural producers will benefit. This project will allow Québec and Canada to consolidate even further their role as leaders in agriculture and foodstuff production," added Denis Richard, President of La Coop fédérée. 

Investissement Québec (IQ), which has the mission of contributing to Québec's economic development, played a leading role in this transaction's success. "All our expertise and our networks were involved in guiding the enterprise in its approaches and putting forward Québec's advantages as a welcoming environment for its project. Investissement Québec organized orientation programs for IFFCO's representatives. We established contact with different sites that combined the advantages and attributes sought by the enterprise. The choice was Bécancour. I wish to congratulate and thank the people responsible for Société du Parc Industriel et Portuaire de Bécancour for the positive reception they gave to this project," maintained Jacques Daoust, President and Chief Executive Officer of Investissement Québec. 

With over 50 million members through 40 000 member cooperative societies, Indian Farmers Fertiliser Cooperative (IFFCO) is one of the biggest fertilizer cooperatives in the world with a turnover in excess of USD 5 billion. It supplies quality fertilizers and provides services to farmers. The cooperative operates five fertilizer production plants in India and holds participating interest in plants in the Sultanate of Oman, Jordan and Senegal, in addition to investing in Australia, Peru and Argentina. 

Source: Investissement Québec