Today, Monsanto Company’s (NYSE: MON) Board of Directors gave final approval for a capital expenditure to expand the company’s Luling, La., manufacturing site. The expansion, a $975 million capital investment, is expected to be operational in three years and enable the company to deliver a strong dicamba formulation pipeline to growers and further strengthen its integrated solutions platform.
Monsanto is investing in dicamba manufacturing at the site to support the launch of its Roundup Ready® Xtend Crop System. Upon anticipated completion of the construction in mid-2019, the Luling facility is expected to supply 25 to 35 percent of the fully mature demand for the dicamba product, a key component of the Roundup Ready Xtend Crop System.
“With more than 60 years of commitment to the Luling community, we are proud to move forward with this facility expansion and play a role in the economic well-being of Southern Louisiana,” said Brett Begemann, Monsanto President and Chief Operating Officer. “Our Luling facility’s unique geographic location within our manufacturing network will help provide our farmer customers across the Americas with better access to a critical weed management tool.”
Weeds represent a key pest to agriculture operations around the world and limit crops of much-needed nutrients, sunlight and access to available water resources. Farmers continue to express a need for these critical technologies to help manage tough-to-control weeds and have better harvests. There is no single solution when it comes to crop protection and dicamba is one tool farmers can use to complement other plant protection practices.
During the next decade, the Roundup Ready Xtend Crop System is expected to launch across the United States, Brazil, Latin America South and other world areas. Ensuring an adequate and cost-effective supply of dicamba chemistry is critical to successfully meeting growing customer demand, which could represent 250 million acres of farmland opportunity across the Americas.
The additions to the Luling facility are expected to add about 100 full-time employees and 20 contractors to the site. The Louisiana Economic Development also estimates the project will result in an additional 450 new indirect jobs in the state, for a total of about 550 new jobs.
“Agribusiness and chemistry represent two of the most important business sectors in our state, and this major manufacturing investment by Monsanto strengthens each of these key industries,” Gov. John Bel Edwards said. “We’re encouraged by Monsanto’s vote of confidence in Louisiana as a great place to do business and a vital part of its manufacturing operations. Above all, we’re delighted that hundreds of existing jobs will be secured by this expansion, and that we will grow the workforce of Monsanto with new career opportunities for more Louisiana families. Along the way, we will be supporting farmers across the state and our nation with products made here in St. Charles Parish.”
About Monsanto Company
Monsanto is committed to bringing a broad range of solutions to help nourish our growing world. We produce seeds for fruits, vegetables and key crops – such as corn, soybeans, and cotton – that help farmers have better harvests while using water and other important resources more efficiently. We work to find sustainable solutions for soil health, help farmers use data to improve farming practices and conserve natural resources, and provide crop protection products to minimize damage from pests and disease. Through programs and partnerships, we collaborate with farmers, researchers, nonprofit organizations, universities and others to help tackle some of the world’s biggest challenges. To learn more about Monsanto, our commitments and our more than 20,000 dedicated employees, please visit: discover.monsanto.com and monsanto.com. Follow our business on Twitter® at twitter.com/MonsantoCo, on the company blog, Beyond the Rows® at monsantoblog.com or subscribe to our News Release RSS Feed.
Cautionary Statements Regarding Forward-Looking Information:
Certain statements contained in this release are "forward-looking statements," such as statements concerning the company's anticipated financial results, current and future product performance, regulatory approvals, business and financial plans and other non-historical facts. These statements are based on current expectations and currently available information. However, since these statements are based on factors that involve risks and uncertainties, the company's actual performance and results may differ materially from those described or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, among others: continued competition in seeds, traits and agricultural chemicals; the company's exposure to various contingencies, including those related to intellectual property protection, regulatory compliance and the speed with which approvals are received, and public understanding and acceptance of our biotechnology and other agricultural products; the success of the company's research and development activities; the outcomes of major lawsuits; developments related to foreign currencies and economies; pursuit of acquisitions or other transactions; fluctuations in commodity prices; compliance with regulations affecting our manufacturing; the accuracy of the company's estimates related to distribution inventory levels; the recent increases in and expected higher levels of indebtedness; the company's ability to fund its short-term financing needs and to obtain payment for the products that it sells; the effect of weather conditions, natural disasters, accidents, and security breaches, including cybersecurity incidents, on the agriculture business or the company's facilities; and other risks and factors detailed in the company's most recent periodic report to the SEC. Undue reliance should not be placed on these forward-looking statements, which are current only as of the date of this release. The company disclaims any current intention or obligation to update any forward-looking statements or any of the factors that may affect actual results.
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Contacts:
Lindsey Dario, 314-694-6141
