Nufarm will establish a new manufacturing facility in Chicago to support growth in the fungicides, insecticides and seed treatment segments.

The new facility, which will open in 2013, will also accommodate Nufarm's North American headquarters and the global head office for the group's seed technologies business, Nuseed. The project involves a capital investment of approximately $9 million.

When fully commissioned, the new plant will manufacture most of Nufarm's expanding range of fungicides, insecticides, growth regulators and seed treatments and will support the growth of these segments within the North American market. The provision of 'in-house' capacity will provide additional flexibility to meet changing market needs and demand; will reduce inventory costs; and will capture an increased, integrated margin.

Nufarm's Managing Director, Doug Rathbone, said Nufarm is targeting increased growth in these higher value market segments.

"These facilities will enable us to more closely collaborate with customers to create innovative products and meet their customised supply requirements."

The location of the new plant, in the same general area as Nufarm's Chicago Heights herbicide manufacturing facility, will allow the company to leverage combined purchasing power for packaging materials and other supplies and strategically places the company's production within a one day transit of a large majority of key U.S. customers.

Manufacturing operations in the new plant are expected to commence in early 2013, with the relocation of Nufarm's North American office at nearby Burr Ridge scheduled for later in the year.