ST. PAUL, Minn., Jan. 21, 2015 /PRNewswire/ -- CHS Inc. (NASDAQ: CHSCP, CHSCO, CHSCN, CHSCM, CHSCL), North America's leading farmer-owned cooperative and a global energy, grains and foods company, and Northern Partners Cooperative, Mendota, Ill., announced today that CHS will build a 47,000 ton capacity fertilizer warehouse with product blending capabilities that will be operated by Northern Partners Cooperative. In addition, the two companies will form a joint venture to build and operate a grain barge loading facility that will handle corn, soybeans and wheat for export through the CHS terminal at Myrtle Grove, La.
Northern Partners Cooperative will use the terminals at Peru primarily to serve farmer-owners of its retail business with nitrogen, phosphorus and potassium fertilizers and to facilitate grain handling. CHS will serve its nearby cooperative wholesale fertilizer and grain customers from these facilities.
"These new assets will give our member-owners direct access and ownership in the supply and distribution chain, bringing them a step closer to world markets," said Eric Anderson, general manager, Northern Partners Cooperative. "These new state-of-the-art facilities will help provide a more stable, dependable source of crop nutrients, as well as a cooperative presence in the grain export market which will add value to our member-owners' farming operations."
"We are pleased to partner with CHS, the nation's leading cooperative in this venture. While we are very different in size, our core values are very similar. Both companies work to provide relevant, valuable products and services to member-owners," Anderson said.
Anderson also expressed gratitude to local government officials for their support and expertise. "We look forward to working with Mayor Scott Harl and the City of Peru to bring jobs and economic development to benefit the Illinois Valley, and we appreciate their many efforts to help us establish this new venture," Anderson said.
"CHS is always looking for strategic investments and partnerships that create additional growth opportunities for its farmer-owners and this agreement with Northern Partners Cooperative does just that," said Rick Dusek, CHS vice president, Ag Business. "It allows CHS to expand its grain origination with direct Illinois River access and it enables further growth of our fertilizer business by adding infrastructure that is critical to timely and reliable fertilizer supply and delivery."
Construction will begin early in 2015 and is expected to be completed in the spring of 2016. When the plant is operational, Anderson said approximately eight new employees will be hired.
About Northern Partners
Formed in 2009 through the merger of four area cooperatives, Northern Partners Cooperative (www.northernpartners.net) is a progressive farmer-owned grain, agronomy and energy cooperative located in North Central Illinois. Its 70 employees serve more than 900 customers from eight locations in four counties.
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, 2014, 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.