US-based agribusiness company Monsanto has announced to invest $975m over the next three years to expand its manufacturing site in Luling, Louisiana.
The investment will also support the launch of Roundup Ready Xtend Crop System, a seed technology system, at the site.
Roundup Ready Xtend Crop System is a genetically-engineered seed which is resistant to glyphosate and dicamba.
The construction on the Luling facility is expected to be completed in mid-2019.
After the facility becomes operational, it is expected to supply 25 to 35% of fully mature demand for the dicamba product, which is a key element in the functioning of Roundup Ready Xtend Crop System.
Monsanto president and COO Brett Begemann said: "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.
"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 are considered to be a natural menace to agricultural operations as they limit crops from gaining the much-required nutrients, sunlight and access to available water resources.
Farmers continue to seek technologies that help manage weed control and aid better harvests. Dicamba is a tool designed for farmers to support other plant protection practices.
In the next 10 years, the Roundup Ready Xtend Crop System is slated to be launched in the US, Brazil, Latin America South and other world regions.
Among the additions to the Luling facility are 100 new full-time employees and 20 contractors to the site.
According to the Louisiana Economic Development estimates, the project will result in another 450 new indirect jobs in Louisiana, thereby bringing the total number of new jobs to 550.
For the project, Louisiana state will provide Monsanto a performance-based modernization tax credit of $3.75m, along with a $1.7m Economic Development Award Program performance-based grant to compensate rail and electrical infrastructure costs associated with the project.
The company will also receive comprehensive solutions of LED FastStart, a state workforce development program.
Louisiana state governor John Bel Edwards said: "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.
"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."
Image: Monsanto invests in seed technology system at its Luling facility. Photo: Courtesy of Rawich/FreeDigitalPhotos.net.
