The Iowa Fertilizer Co., a subsidiary of one of the world’ s largest fertilizer producers, Orascom Construction Industries (OCI), announced Wednesday that it will build a $1.4 billion fertilizer plant in Lee County. The project is the single-largest capital investment project in the state’s history, Gov. Terry Branstad’s office said in a release.

OCI also announced today that it will acquire Des Moines-based Weitz Co., the second oldest commercial general contractor in the United States. (Click here for the full story)

The project is expected to create 165 permanent jobs and more than 2,000 construction-related jobs. The Iowa Economic Development Authority (IEDA) board on Wednesday approved $26 million in tax credits for the project, adding to a $1.6 million direct financial assistance award it had approved earlier this year.

The IEDA board in February had awarded the company incentives to locate in Lee County, but “due to some unforeseen challenges with the original site,” the company resumed its search for a suitable location and was pursued by other states to locate outside of Iowa, according to Branstad’s office..

An amendment to the financial incentive award approved Wednesday included an increase to the investment tax credit portion of the High Quality Jobs award, increasing the total tax credits to $57.5 million. The IEDA board will also be asked to consider future amendments in the next two fiscal years to increase investment tax credit portion of the award by $25 million in each of those years. If the board passes those amendments, the final award to Iowa Fertilizer Co. would amount to $100 million of tax credits.

Branstad said in a release that Iowa had to offer incentives to overcome its current corporate income tax structure, and said the project illustrates why tax reform is necessary.

“If our income tax structure was more competitive, we would be better able to compete for job and capital investment creation projects like this one,” he said. “It also will level the playing field for our existing Iowa companies, allowing them to grow and create even more jobs,” said Branstad.