DES MOINES, Iowa — Two newly proposed fertilizer plants are slated for construction this year in southeastern and west-central Iowa, one of which is owned by one of the world’s largest fertilizer companies, according to state officials.

The Iowa Economic Development Authority (IEDA) Board on Feb. 17 approved direct financial assistance and tax incentives for a proposed plan to build Iowa Fertilizer Co., a $1.3 billion large-scale nitrogen fertilizer plant on 300 acres near Wever in Lee County.

“I am very excited to announce that with action today from the Iowa Economic Development Board, Iowa is one step closer to landing the largest capital investment project in the history of the state of Iowa,” said Gov. Terry Branstad.

In addition to the significant investment Iowa Fertilizer Co.’s proposed project would make in southeastern Iowa, Lt. Gov. Kim Reynolds added “it will also bring good, high-paying jobs to an area of our state that has had its share of challenges.”

A subsidiary of Orascom Construction Industries in Cairo, Egypt, which is one of the world’s largest fertilizer producers, Iowa Fertilizer Co. will supply ammonia and other nitrogen fertilizers to farmers in the Midwest. The product made at Iowa Fertilizer Co. will replace imported nitrogen fertilizer and other products for markets in Iowa, Illinois and Wisconsin.

The new plant will receive an incentive package of $37 million, which includes tax credits, as well as $1.6 million in loans. When it becomes fully operational by 2014, Iowa Fertilizer Co. will fill 165 permanent jobs, with employees receiving at least $20.82 an hour. It will also create 1,500-2,000 construction-related jobs.

Moreover, Iowa Fertilizer Co. is expected to receive local financial assistance from Lee County, and the Iowa Department of Transportation (IDOT) board will consider kicking in $2 million for road and other infrastructure improvements. Although Orascom will provide nearly $101 million for the project, as well as nearly $1.2 billion in low-cost financing through a Midwest disaster bond program, it’s seeking an $805,000 loan and an $805,000 forgivable loan from the state of Iowa and requesting $1.4 million in tax credits for job training.

Debi Durham, IEDA director, said the proposed project could have a huge impact on the entire state “that will benefit residents for years to come,” especially since Lee County will give Orascom key access to the Corn Belt. “Economic development takes many forms, but is best achieved when the assets of the location align perfectly with the strengths of the company making the investment,” she said. “That is exactly why it is essential we have the right tools to continue to compete for global projects of this magnitude.”

In addition, GROWMARK, Inc., based in Bloomington, Ill., will construct a dry fertilizer storage facility at Stuart, Iowa, which will be overseen by local retailer AGRILAND FS, Inc., which will conduct the day-to-day operational activities at the facility. The west-central dry plant food facility will have a storage capacity of 15,500 tons of fertilizer and will complement the acquisition of CF terminals made by GROWMARK in 2011.

“The location of the Stuart facility is a good fit for AGRILAND FS, and will save the cost of replacing a dry fertilizer building in Winterset,” said John Knobloch, AGRILAND FS general manager.

Construction will begin this spring and completion is expected later this fall, with the facility getting rail-receiving capability from the Iowa Interstate Rail System.

“Iowa Interstate Railroad looks forward to this new venture,” said Carrie Evans, vice president of sales and marketing. “Our connections with all Class One rail carriers at multiple locations, along with access to the Mississippi and Illinois rivers, will help provide an enhanced alternative for transportation to this region.”