this ASX release by Incitec today.I think it is relevant,...

this ASX release by Incitec today.

I think it is relevant, because Incitec was to build a new ammonia plant in Qld, but abandoned it and has chosen the US because of low gas prices, better regulatory regime and labour costs.

I suspect that Aust has lost a big opportunity here, and that it will be just the start.
We have read previously that many US businesses are looking at returning their overseas manufacturing operations back to the US, because of the low gas/energy prices, and back to an environment they know.

Below is excerpts from the IPT release.

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Incitec Pivot Limited
Construction of Ammonia Plant in Louisiana, USA

Incitec Pivot Limited (ASX: IPL) today announced that it has approved US$850 million
of capital expenditure for the construction of a world scale 800,000 metric tonne per
annum ammonia manufacturing plant.

IPL’s Managing Director & CEO, James Fazzino, said the project met IPL’s strict
investment hurdles with compelling financial metrics, with a payback of less than five
years and a 15% Internal Rate of Return.

“Two years ago, IPL identified the unique opportunity to capitalise on a potential
investment in the US through a brownfield site, competitively-priced energy, labour
productivity and responsive regulatory environment.

“The Plant will sit in the bottom quartile of the global cost curve and takes our US
business, and potential future ammonium nitrate expansions, back to US gas
economics.”
“This is a unique set of factors that allows IPL to grow its international business and
strengthens our presence in one of the world’s largest economies.”
Office of the Company Secretary
ABN 42 004 080 264
Registered Office:
Level 8, 28 Freshwater Place
Southbank Victoria 3006
Tel: (61 3) 8695 4400
Fax: (61 3) 8695 4419
www.incitecpivot.com.au
Mr Fazzino said that the project was a good strategic fit for IPL and leverages the Group’s core manufacturing competence. This project brings to seven the number of ammonia plants operated by IPL globally.
“The confidence to proceed with the project was underpinned by support from the State of Louisiana, Jefferson Parish and community. The US Federal Administration’s energy policy platform and commitment to manufacturing was also a major factor” he said.