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Dow Agro plans $340M expansion, 577 new jobs

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Dow AgroSciences on Thursday morning announced plans for a $340 million expansion of its Indianapolis headquarters that is expected to create 577 high-paying jobs over the next five years.

The huge investment will greatly expand the company's research and development capacity and is a major win for the Indiana life sciences industry.

The company expects most of the positions to pay between $65,000 and $95,000 annually.

Dow AgroSciences, a subsidiary of Midland, Mich.-based giant Dow Chemical Co., produces agricultural products, such as seeds and pesticides. In recent years, it has moved heavily into biotechnology, and plans to roll out five products by 2012 that could generate $800 million annually in new sales.

The first phase of Dow AgroSciences’ expansion will be the addition of a 14,000-square-foot greenhouse and a 175,000-square-foot research and development facility at its corporate campus on the city’s northwest side. The greenhouse should be finished by year’s end, according to the company, while the R&D facility slated to open in early 2012.

The Indiana Economic Development Corp. gave Dow AgroSciences $12.5 million in performance-based tax credits and another $205,000 in training grants to encourage the company’s expansion. The city of Indianapolis will kick in another $500,000 from its Industrial Development Grant Fund to help pay for road, sewer and water improvements related to the project.

Indianapolis has also committed to establish a property tax increment financing, or TIF, district to help Dow AgroSciences defer $20 million in project costs. The TIF district must still be approved by city and state officials.

Gov. Mitch Daniels and Mayor Greg Ballard joined Dow AgroSciences CEO Antonio Galindez on Thursday morning to announce the expansion.

“R&D leadership in the life sciences is a dream of every state in the union,” Daniels said in a press release. “Here in Indiana, it’s not a dream, but a vibrant reality, and Dow AgroSciences’ steady growth is a major reason why. This expansion makes Indiana a true world capital of agricultural science.”

Today’s Dow AgroSciences announcement comes on the heels of two expansions last year. In July, the company signed a 15-year lease spurring construction of an 80,000-square-foot R&D building adjacent to its headquarters. In September, Dow AgroSciences revealed it will expand its presence in Purdue University’s West Lafayette Research Park, adding up to 30 jobs there.

Dow AgroSciences was originally formed in 1989 as a 50-50 joint venture between the Elanco Plant Sciences business of locally-based Eli Lilly and Co. and Dow’s agricultural products division. Dow acquired complete ownership in 1997. Dow AgroSciences now employs 5,400 people globally, with 1,200 at its local headquarters.

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  • Poor Jeff
    Jeff, I feel your pain, and read your sarcasm from the get go ... ouch, some people have such harsh things to say ... kind of like that "Let It Out" section in the Indy Star ... watch out for the guy on the grassy knoll!
  • Jobs
    Daniels does nothing different than any of the other previous administrations with respect to jobs announcements.
  • No way! Really?
    I really thought that my reponse was far enough over the top that everybody would recognize the sarcasm aimed at WTHR's ridiculous fluff piece. Oh well.
  • Jeff C.
    Uh Jeff, Mitch can't get re-elected, he is in his second term. Try using your brain. Oh wait, left wing dingbats don't have brains do they?
  • Wink wink
    Jeff C you are thankfully misinformed. Dow expansion is very real and great for this state.
  • Don't believe it!
    If you saw WTHR's attack piece on Mitch Daniels, then you would realize that all of the people at the announcement were probaly paid actors standing there with Mitch and that there is no "Dow Agro". It's all just a ploy to make him look good and get him re-elected.

    Wink, wink, nod, nod, know what I mean, know what I mean.
  • WOW
    Fantastic economic news! DowAgro has become a very important player in the corporate environment of Indianapolis.

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  1. How can any company that has the cash and other assets be allowed to simply foreclose and not pay the debt? Simon, pay the debt and sell the property yourself. Don't just stiff the bank with the loan and require them to find a buyer.

  2. If you only knew....

  3. The proposal is structured in such a way that a private company (who has competitors in the marketplace) has struck a deal to get "financing" through utility ratepayers via IPL. Competitors to BlueIndy are at disadvantage now. The story isn't "how green can we be" but how creative "financing" through captive ratepayers benefits a company whose proposal should sink or float in the competitive marketplace without customer funding. If it was a great idea there would be financing available. IBJ needs to be doing a story on the utility ratemaking piece of this (which is pretty complicated) but instead it suggests that folks are whining about paying for being green.

  4. The facts contained in your post make your position so much more credible than those based on sheer emotion. Thanks for enlightening us.

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