8/23/2010

SNF Flopam Inc. Officials Break Ground On Major New Specialty Chemicals Facility In Plaquemine

PLAQUEMINE, La. -- Today, Gov. Bobby Jindal joined SNF Holding Co. President Peter Nichols, Iberville Parish President Mitchell Ourso, Iberville Parish Chamber of Commerce Executive Director Hank Grace, Sen. Rob Marionneaux Jr., Rep. Karen St. Germain and Rep. Elton Aubert to break ground on SNF's new water-soluble polymers manufacturing facility. The facility in Iberville Parish will operate under the name Flopam Inc.

"Since day one, we have aggressively pursued new business development prospects so that we can create good paying jobs for our people," said Gov. Jindal. "Flopam's decision to invest in the Capital Region is a major economic development win for Louisiana. The company could have gone anywhere in the country, but they recognized that we are creating a new frontier for business opportunity in Louisiana. Most importantly, this new investment by Flopam means that we're continuing to create more opportunity for our people so they can pursue their dreams right here at home. We've made incredible progress in just the past two years, but we will not rest until we can create a better Louisiana for our children."

Trade & Industry Development magazine named this project by SNF among the Top 15 new Corporate Investment projects announced in the U.S. for 2009.

Once completed, the facility will represent a capital investment of approximately $350 million, and will be built in phases over the next five years with the first unit expected to begin operating by late 2011. Once it is fully operational, Flopam's facility will create more than 500 new, direct jobs, at an average salary of at least $57,400, plus benefits, and employ 100 permanent contractors. During the five-year construction period, Flopam also expects to create 250 construction-related jobs, and make significant expenditures with local and state vendors.

"This facility is the largest, single, greenfield investment in the history of our company," said Nichols. "We've reached this significant point in our project with the tremendous support from the state of Louisiana and so many individuals in Iberville Parish. We look forward to executing our construction plans over the next few years and having a lasting impact on the parish and state."

Flopam will produce acrylamide monomer and polyacrylamide powders packaged in bags or supersacks at its Plaquemine facility. Polyacrylamide is a water-soluble polymer that is commonly used to assist in removing impurities from water and in wastewater treatment applications. It is also used in oil and natural gas drilling and has achieved success in enhanced oil recovery.

An economic-impact analysis conducted by LSU in 2009 determined the facility will provide an injection of more than $3.7 billion in new, state economic output from 2010 to 2025. According to the analysis, the new, direct jobs will create approximately 900 new, indirect jobs for a total of 1,400 permanent, new jobs in Louisiana, making Flopam one of Louisiana's top 125 economic driver firms based on direct and indirect job impact.

"This project was one of the largest corporate investments announced in the U.S. in 2009, and we are going to continue aggressively attracting new business investment to our state so that we can position Louisiana to outperform the South and the U.S. on a regular basis," said Louisiana Economic Development Secretary Stephen Moret. "We look forward to continuing to support SNF as they complete development of this huge project."

During the company's site selection process, state and local officials developed a customized incentive package to help secure the project. If all performance requirements are met, Flopam will receive a state incentive package worth approximately $39.1 million, including performance-based financial assistance of $26.3 million for a rail spur and other site infrastructure, as well as performance-based incentive payments of $1.28 million per year for the first 10 years of the project. Iberville Parish is contributing $1 million to fund public infrastructure, including an access road. SNF also is expected to take advantage of LED's Quality Jobs program.

LSU also estimated this project will result in $107 million in new, state tax revenue, as well as $29.9 million in new, local tax revenue, from 2010 to 2025, which is the contract term for the associated cooperative endeavor agreement. These estimates exclude property taxes and corporate income taxes. SNF selected Iberville Parish as the winning plant site in 2009 after an extensive and competitive, multistate evaluation of potential candidates. Prior to selecting Louisiana, SNF considered sites located in three other states.

About SNF
SNF Holding Co. is the American subsidiary of the French company SNF Floerger. SNF is one of the world's leading manufacturers of water-soluble polymers and specializes in serving the municipal, industrial and wastewater treatment industries as well as a wide array of specialty applications. Water-soluble polymers from SNF are in use in municipal waste, industrial waste and wastewater treatment facilities around the world.