Traveling from St. Louis east to Indiana along Interstate 64 or I-70 and one sees thousands of farms. It is a wonderfully rich site. Those farmers are also customers who will need fertilizers improving their crop yield. Real estate agents always mention the importance of “location, location.” It is important to be near one’s customers.
Paraphrasing a recent Internet announcement: “Midwest Fertilizer Company, LLC has entered into an agreement with ThyssenKrupp Industrial Solutions (USA), Inc. to design and build a state-of-the-art nitrogen fertilizer manufacturing facility in Posey County, Ind. (10 miles from Illinois) at an agreed aggregate price in excess of $2 billion.
“This plant allows us to move forward with the next phases of this world-class project in southwest Indiana. Midwest Fertilizer Company’s facility will produce ammonia, urea, urea ammonium nitrate (UAN) and diesel exhaust fluid. UAN is the preeminent liquid fertilizer used in the Midwest.
“Thanks to Posey County’s business friendly environment, we are on the path to provide farmers in Indiana and the Midwest a reliable local source of high-quality nitrogen fertilizer.
“The fertilizer plant is expected to generate more than 2,500 construction jobs over a three- to four-year period and approximately 200 permanent employment opportunities. Once completed, the fertilizer plant will provide local production for the farmers in the Eastern Corn Belt.”
Why would a firm wish to be located just outside their customers’ boundaries? Did our Springfield Legislature miss this data point? Another lesson learned?
Ray Catlett, Collinsville