Ashwin Muthiah's firm plans $1-bn US plant.

In what looks like an innovative alliance between an Indian business unit and an Indian-American at the helm of affairs in the US, the Ashwin Muthiah-led AM International is set to make a major investment in Louisiana, with assistance from that state's governor, Bobby Jindal.

AM International, which has a controlling stake in Chennai-based Spic, will set up an ammonia manufacturing plant at an investment of $1 billion. Jindal, born to Indian immigrants in the US and speculated to be the Republican Party's nominee for the 2016 US presidential elections, has offered the company a performance­based $5.6-million grant to offset the project's infrastructure costs.

Muthiah's company will also get the benefits of the state's quality jobs and industrial tax exemption programme, which offers tax incentives for companies to start operations in Louisiana.

According to sources, AM Agrigen Industries, a subsidiary of Muthiah's Singapore-headquartered AM International, which will execute the project, has selected a St Charles Parish site in Louisiana to develop the potential 800-tonne ammonia manufacturing facility. Feasibility studies for the project are underway and the company has secured an option to purchase 650 acres of land for the project. It has also received the requisite environmental permits to operate such facilities.

BS