Monsanto expands, increasing worldwide Roundup production

Monsanto has completed a nearly $200 million expansion that has increased the company’s Roundup production at the Luling site by 20 percent.

Gov. Bobby Jindal joined Monsanto Co. Chairman, President and CEO Hugh Grant at the grand opening of the company’s new expansion. Monsanto’s expansion creates 26 new jobs, represents $196 million in capital investment and will generate 166 indirect jobs. Currently, the plant employs 690 individuals at an average annual salary of $88,000, plus benefits, and an additional 200 full-time contractors.

“Monsanto’s expansion builds on the positive economic momentum that is sweeping across our state,” Jindal said. “In the midst of a difficult national recession, we are improving our business climate so companies like Monsanto can expand, prosper and create more jobs for our people.”

Monsanto’s expansion will increase production of Roundup agricultural herbicide by 20 percent and improve the reliability of supply through infrastructure improvements.

The facility will also deliver substantial energy savings and carbon emission reductions through the use of hydrogen gas as a fuel in the newly installed, dual fuel steam boiler. The company estimates this reduction equals the carbon footprint of 9,000 airplane trips around the world annually.

For this expansion, Monsanto intends to use the state’s Quality Jobs and Industrial Tax Exemption programs. The Quality Jobs program provides a 5 or 6 percent cash rebate of annual gross payroll for new direct jobs for up to 10 years. The Industrial Tax Exemption program includes a property tax exemption for investment, including all land improvements, buildings, machinery, equipment and any other property that is part of the manufacturing process and kept on site.

“Louisiana provides a number of benefits with the largest factor for me being the pool of great employees with the skills needed to run a site like this and the creative insight to keep us innovating,” said Grant. “These skills have been invaluable as farmers increased adoption of conservation tillage and biotechnology, and we have increased production of Roundup. It is exciting to see what our team here is doing and the growth we are achieving.” 

In October 2009, Air Products, a leading global hydrogen provider, signed a long-term supply contract with Monsanto to build a new world-scale hydrogen production plant to be located at the Luling facility. This new hydrogen plant will further reduce natural gas usage by recovering hydrogen and is scheduled to be on-stream in January 2012.