ST. PAUL, Minn., April 23, 2014 /PRNewswire/ -- CHS Inc. (NASDAQ: CHSCP, CHSCO, CHSCN), the nation's leading farmer-owned cooperative and a global energy, grains and foods company, and Fessenden Cooperative Association, Fessenden, N.D., announced today they have formed a 50-50 joint venture company to construct and operate a fertilizer warehouse at Hamberg, N.D. The facility will have 28,000 tons of nitrogen, potassium, sulfate, phosphorus and micronutrients storage capacity and product blending capabilities.
The new warehouse at Hamberg will primarily serve farmer-owners of Fessenden Cooperative Association retail business, and CHS will also serve its nearby wholesale customers from this location.
"Future market forces and trends for our region indicate we can expect more corn acres, CRP acres coming back into production, and overall increased fertilizer use to ensure healthy, profitable yields," said Mark Hovland, general manager, Fessenden Cooperative. "Our new, larger and more efficient facility will give area growers better overall fertilizer service and options."
Hovland said the fertilizer warehouse is the second major partnership with CHS. Last year, Fessenden Cooperative and CHS built a greenfield grain shuttle loading facility on the Burlington Northern rail line at Hamberg. "Long-range plans for improved fertilizer capacity and service have long been part of our growth strategy, and we look to CHS to provide global access to a wide array of markets as well as valuable marketing insights and expertise," he said.
"CHS is focused on expanding its crop nutrients business to continue to provide its retail customers with an assured, timely supply of crop nutrients vital to profitable crop production," said Cheryl Schmura, CHS vice president, Crop Nutrients, marketing and sales. "Our partnership with Fessenden Cooperative adds critical storage capacity in a key geography."
Plant construction will begin this summer and is expected to be completed by fall of 2015. When the plant is operational, Hovland said three additional employees will be hired.
About Fessenden Cooperative
Formed in 1943, Fessenden Cooperative is a farmer-owned grain and agronomy cooperative located in central North Dakota. Sixty employees serve about 700 customers from six locations in four counties. Products and services include grain marketing, crop nutrients, crop protection products, and seed sales along with custom application, crop scouting, and soil testing.
About CHS Inc.
CHS Inc. (www.chsinc.com) is a leading global agribusiness owned by farmers, ranchers and cooperatives across the United States. Diversified in energy, grains and foods, CHS is committed to helping its customers, farmer-owners and other stakeholders grow their businesses through its domestic and global operations. CHS, a Fortune 100 company, supplies energy, crop nutrients, grain marketing services, animal feed, food and food ingredients, along with business solutions including insurance, financial and risk management services. The company operates petroleum refineries/pipelines and manufactures, markets and distributes Cenex® brand refined fuels, lubricants, propane and renewable energy products.
This document contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 that are based on management's current expectations and assumptions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. The company undertakes no obligations to publicly revise any forward-looking statements to reflect future events or circumstances. For a discussion of additional factors that may materially affect management's estimates and predictions, please view the CHS Inc. annual report filed on Form 10-K for the year ended Aug. 31, 2013, which can be found on the Securities and Exchange Commission web site (www.sec.gov) or on the CHS web site www.chsinc.com.
SOURCE CHS Inc.