IBJNews

Indiana withdraws support for fertilizer plant

Back to TopCommentsE-mailPrintBookmark and Share

State officials have withdrawn economic incentives they had offered for a southwest Indiana fertilizer plant over concerns about whether its Pakistan-based owners are doing enough at their overseas operations to keep the potentially explosive material from being used against U.S. troops.

Gov. Mike Pence announced the move concerning Midwest Fertilizer Corp. on Friday. He put the Posey County project on hold in January pending an investigation.

The Indiana Finance Authority issued $1.3 billion in bonds in December for a nitrogen fertilizer plant that Midwest Fertilizer plans to build at the Port of Mount Vernon in southwestern Indiana's Posey County. Midwest Fertilizer Corp. is part of Lahore, Pakistan-based Fatima Group.

Fatima said it has a reformulated product that is less explosive, but U.S. officials have not yet tested it.

The IFA learned Jan. 14 about concerns that Fatima might not be cooperating with U.S. officials worried that fertilizer made in Pakistan ends up in improvised explosive devices in Afghanistan that have killed American troops.

Midwest Fertilizer said it'll continue with the project despite the withdrawal of state incentives. The company issued a statement Friday that said the Fatima Group has begun tracking its product and suspended sales of a chemical used in both fertilizer and explosives in some Pakistani provinces.

Midwest said it's still exploring options with local economic development officials. The plant is expected to create 300 permanent jobs, Midwest said.

 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
ADVERTISEMENT