CHS Inc. and Watertown Cooperative Elevator Association, Watertown, S.D., have formed a partnership for the construction and operation of a fertilizer hub plant.

The warehouse at Watertown will have capacity to handle 39,000 tons of dry nitrogen, phosphorus and potash. The co-owned hub plant with blending capability will serve CHS Crop Nutrients wholesale customers and Watertown Cooperative Elevator customers in the region.

"CHS has always been a strong, trusted business partner with us on both our inputs and grain business," says Ralph Nelson, Watertown Cooperative Elevator Association general manager. "This new plant will be more cost- effective because it replaces four older facilities and will enable us to better serve growers."

Construction has started with completion expected in August, 2012.