The Quebec government will support the Becancour region with an investment in a $1.2 billion fertilizer production facility in the form of government grants, government loans, and government funding.
The Coop fédérée and
IFFCO will be partners in the project. These large agricultural cooperatives
are included in the $1.2 billion investment.
Established in 1975, IFFCO is a United
Arab Emirates based business, which manufactures and markets agricultural
value-added goods. IFFCO operates under the following business segments: Fast
Moving Consumer Goods (FMCG), Commodities, Oils and Fats, Frozen Foods, and
Institutional Services. IFFCO also provides related derivatives and
intermediates associated with these business segments.
IFFCO is set to invest between $100
million to $200 million in the project.
U.S. Awasthi, managing director and
CEO for IFFCO, said that after examining 50 potential sites, Becancour was
chosen because of the accessibility of natural gas needed in the production of
urea, the essential product used in nitrogen fertilizer. He added that Becancour,
located in central Quebec’s agricultural heartland, also provides the proximity
of a port on the St. Lawrence River. It also offers access to railway and major
road transportation networks to facilitate distribution of the fertilizer in
Quebec, eastern Canada and the northeastern United States.
Founded in 1922, La
Coop fédérée is the biggest
agri-food enterprise in Quebec and ranks among the 100 biggest cooperatives and
mutual in the world. It is owned by its’ more than 90,000 members grouped in
103 cooperatives spread through several provinces of Canada. The Coop federee
is present throughout the agri-food chain and, as a wholesaler, provides
agricultural producers with the goods and services necessary to operate their
farm businesses.
According to CBC news, The Coop federee
will act as co-investor in this transaction and will distribute the product in
its vast network of more than 175 stores across several regions of Canada. "We are very proud that IFFCO has chosen
to call on the Coop federee'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 Quebec
and Canada to consolidate even further their
role as leaders in agriculture and foodstuff production," added Denis Richard, President of the Coop federee.
“The new factory will produce urea, a
necessary composite for fertilizer.”
“Urea requires a large quantity of
natural gas to be produced and Becancour is located near a pipeline.”
This Government supported program will
demonstrate that government grants and government loans can be used to partner
with private businesses and achieve success that will have a broad impact on
local and regional economies.
More than 500 workers will be hired to
help build the factory. With the completion of the factory, the facility will
employ 200 people.
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