EDDYVILLE — The Iowa Department of Economic Development says a chemical distributor will build a $68 million manufacturing plant adjacent to Cargill’s Eddyville operation.

According to a release from Cargill on Monday, the deal with Midwest Chlor-Alkali, LLC is contingent on completion of “lease negotiations.”

Midwest will make sodium hydroxide, hydrochloric acid and bleach on about 10 acres at the Cargill Eddyville complex, also known as the Iowa Bioprocessing Center.

They will supply Cargill corn-milling plants as well as other customers. Cargill uses some of the chemicals in their processes.

Cargill spokesman Bill Brady told the Courier that besides the workers needed to build the site, there would be a range of jobs at the plant.

“We think the number will be 15 to 20 permanent employees,” he said, adding that the jobs would average “a shade under $30 [an hour].”

Midwest is a subsidiary of Harris and Ford of Indianapolis, a chemical distributor with sales of more than $100 million per year. Its president, Tim Harris, will also serve as president of Midwest.

“With this project, our company moves beyond distribution into manufacturing,” Harris said. “It’s a major expansion in scope for us, and we couldn’t ask for a more respected partner than Cargill to help us take this step.”

As with other companies co-located at the Iowa Bioprocessing Center, Midwest will receive its water supply and wastewater treatment from Cargill, which will also invest in pipelines to connect the companies.

“We’re delighted at this opportunity to deepen a relationship with one of our valued suppliers,” said Cargill Corn Milling President Pat Bowe. “This project will increase Cargill Corn Milling’s spending with diverse suppliers by almost 40 percent.”

Timothy Thomas, Cargill’s director of supplier diversity, praised the “outside the box” thinking that went into the establishment of Midwest and the long-term supplier agreement with Cargill.

“This is a great example of how Cargill can help create business development opportunities for diverse suppliers in parts of the supply chain where few such suppliers operate,” he said. “It creates strategic benefits for both the suppliers and for Cargill.”

For example, said Brady, transportation costs to Eddyville are virtually nonexistent.

Brady said Midwest expects to break ground later this month, with the first product expected to “roll off the lines” early in 2009.