Iowa Fertilizer plant nears the finish

WEVER - Iowa Fertilizer Co. finally is nearing the starting line for production at its Wever plant - over its original budget and more than a year behind schedule.

'We're looking for production in the first quarter (of 2017),” said Larry Holley, IFC president.

Since the facility's announcement, the Iowa Economic Development Authority Board has approved $107.5 million in state tax credits for the plant. Orascom Construction, parent of the Iowa Fertilizer Co., will not receive any of the tax credits until the plant begins operations.

In addition to the state financial incentives, the company was given local breaks from Lee County, including $133 million in tax abatements over a 20-year period. It also qualified for federal tax-exempt bonds worth an estimated $300 million.

In the fall of 2012, when ground was broken on the site south of Wever, the plant was expected to cost $1.8 billion and be running by fall 2015. A tough first winter got the project off to a slow start, plus the firing of URS, a San Francisco-based engineering and construction management company, in April 2015 also threw a wrench in the progress of production.

'Everybody wishes we were further along,” Holley said.

Holley said the cost of construction of the IFC plant exceeds $2 billion.

'No one likes to spend more money than they want,” Holley said.

Total construction of the plant has reached 99 percent complete.

'This is certainly a milestone in the agriculture sector,” Holley said of the Wever plant.

The utilities at the plant have been in full operation for months. In recent months subdivisions of the plant have undergone testing.

'A test run (of the whole plant) will be early in the new year,” Holley said. 'We are at that phase of building up. Our people are working on all phases before the commissioning.”

The IFC plant will produce ammonia, urea and UAN, a liquid fertilizer.

Holley said IFC plans to have product available for its Iowa and Illinois customers for the spring planting season.