Monsanto Matches Agricultural Market Momentum with Big Investment Plans

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Researched by Industrial Info Resources (Sugar Land, Texas)--As demand for corn remains high to meet the needs of ethanol and consumers alike, Monsanto Company (NYSE: MON) (Saint Louis, Missouri) continues to invest in this market with an estimated $500 million in capital and maintenance spending identified by Industrial Info over the next year. This investment is comprised of more than 20 projects identified as part of Industrial Info's North American Project Database, with the majority of this spending proposed in seed processing or seed production plants. As ethanol became the standard replacement for MTBE and similar fuel oxygenates over the past five or more years, farmers have struggled to plant or harvest enough corn to keep up with demand.

More than $300 million in corn seed processing investments are planned over the next year including two grassroot seed plants in the cornbelt region of the United States. The first of these new plants is at a site located in York, Nebraska that will encompass a 145 acre site and produce an estimated 1,200 bags per hour of corn seed when completed in the summer of 2009. The second grassroot plant is expected to be of similar size and is tentatively to be located in Independence, Iowa with construction beginning early next year.

Earlier this year, Monsanto announced plans to spend significantly on its glyphosphate chemicals located in Luling, Louisiana. A series of investments planned to increase the plant's capacity of its Round-Up herbicide product as well as energy reduction and environmental compliance driven projects will be implemented over the next year or more totaling nearly $200 million.

Another significant portion of future investments will be in Monsanto's phosphate plant located in Soda Springs, Idaho. A plan for a new thermal oxidizer unit that was identified over six years appears to be gaining some momentum with the potential for construction starting later this year. A number of smaller investments are planned at the site in the coming year supporting the plants estimated 1.1 million tons per year phosphate plant.

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Industrial Info Resources (IIR) is a marketing information service specializing in industrial process, energy and financial related markets with products and services ranging from industry news, analytics, forecasting, plant and project databases, as well as multimedia services.