Vinson & Elkins partner Kaam Sahely advised and continues to advise Dyno Nobel Inc., a subsidiary of Incitec Pivot Ltd. (IPL), on all aspects of the development of an $850 million anhydrous ammonia plant in Louisiana. The 800,000 metric ton per annum ammonia manufacturing plant will be situated on a brownfield site, which is part of Cornerstone Chemicals Company’s chemical complex in Waggaman, LA, situated on the industrial corridor along the Mississippi River.
IPL, through its subsidiary Dyno Nobel Louisiana Ammonia LLC, has entered into a contract with KBR Inc., a global engineering, construction and services company with world leading ammonia technology. This contract is for the engineering, procurement and construction of the plant and will include a license of KBR’s ammonia technology. Production is planned to commence in the Third Quarter of 2016. The plant is sold out from day one of production commencing with 300,000 tons to the group’s own plants in the U.S. The balance is committed to offtake agreements with Transammonia Inc. and Cornerstone Chemicals Company. The Group’s U.S. business, Dyno Nobel, is the largest manufacturer of industrial explosives in North America having nine major manufacturing sites.
The project will be funded by debt facilities and internally-generated cash flows.
Other V&E attorneys assisting on the matter include partners Peter Mims (intellectual property), Larry Nettles (environmental), Lewis Sutherland (environmental) and Sean Becker (employment, labor and OSHA), counsel Jim Penny (tax), and Scot Dixon (real estate), and associates Alan Alexander, John Slaybaugh, JT Carpenter, Sarah Hurt, and Corinne Snow.
