Fertiliser Major IFFCO today said it has singed an agreement with Canada-based La Coop federee to set up a urea plant in Quebec province with an investment of $ 1.2 billion (about Rs 6,350 crore) in the next 2 years.
The plant will be established at Becancour city in Quebec province in Canada. La Coop federee, an agri cooperative, is the biggest agri-food enterprise in Quebec.
“Indian Farmers Fertiliser Cooperative (IFFCO) and La Coop federee yesterday announced an agreement of intent to establish a urea production nitrogen fertiliser plant in Becancour (in Quebec province in Canada),” India’s biggest farmer cooperative said in a statement.
This is a $ 1.2-billion investment, which will allow production and marketing of urea fertiliser in the form of nitrogenous crop nutrients, it added.
“The plant’s construction is scheduled to begin in 2014, once the various permits have been approved and the urea marketing is targeted to begin in 2017, once the various approvals are obtained,” it said.
IFFCO chose the Becancour Industrial Park site due to its strategic location, access to a port and railway and the ease of supplying it with natural gas pipeline, it added.
IFFCO Managing Director U S Awasthi said the investment allows two large agricultural cooperatives from two large agricultural economies, to play a central role in a rapidly-changing agricultural industry.
“We must rely on prosperous regions offering quality jobs. This is why the Government du Quebec is proud to support this industry, which ultimately will allow the creation of more than 200-300 quality jobs in Becancour,” Minister for Industrial Policy and the Banque de development economique du Quebec, Elaine Zakaib said.
La Coop federee will act as co-investor and will distribute the product from this urea plant in its vast network of more than 175 stores of several regions of Canada.
IFFCO, which produces and markets fertilisers, operates 5 fertiliser production plants in India and holds participating interest in plants in Oman, Jordan and Senegal.
La Coop federee is the biggest agri-food enterprise in Quebec and ranks among the 100 biggest cooperatives and mutuals in the world, all sectors combined.