Kris Turner

kris.turner@indystar.com

Some of Indiana’s top political brass is pushing for the new agricultural headquarters of the merged Dow Chemical and DuPont to be located in Indianapolis.

Indiana's U.S. Sens. Dan Coats and Joe Donnelly spoke with DuPont Chief Executive Officer Edward Breen last week to push for the ag division to call Indianapolis home.

The ag company represents an opportunity for major job growth and economic development and is expected to do $18 billion a year in business, possibly growing larger than industry leader Monsanto.

Donnelly told Breen about the advantages of operating the ag operation in Indiana and pledged to be a resource in the coming weeks as a final decision is made.

Coats was optimistic about Breen's impression of Indiana, spokesman Matt Lahr said.

"Senator Coats sensed that the executives are impressed with Indiana’s business climate, low taxes, convenient air travel and the quality of life Indianapolis offers," Lahr said. "Senator Coats is pleased to support all efforts to retain and hopefully increase the presence of Dow AgroSciences in Indiana."

Gov. Mike Pence and Indianapolis Mayor Joe Hogsett met with representatives from Dow and DuPont earlier this month while they were in the city to tour Dow AgroSciences, which is located in northern Indianapolis. Dow AgroSciences captured $1.2 billion in sales in the third quarter of 2015 and employs about 1,500 people.

The new agricultural business is one of three publicly traded global divisions that are being created as a result of the Dow/DuPont merger. The other companies will focus on material sciences and specialty products. Midland, Mich., which is where Dow is headquartered, will be the home of the materials division.

Indianapolis is competing against in Johnston, Iowa, and Wilmington, Del., for the ag division. DuPont’s Pioneer seed company is based in Johnston, and DuPont is headquartered in Wilmington.

Sen. Chuck Grassley, R-Iowa, said he spoke Thursday with DuPont’s Breen and Dow CEO Andrew Liveris and an unnamed executive to push for Iowa as the headquarters of the new ag division.

The Iowa Republican, who is a farmer in Butler County, came away from the meetings believing the headquarters will likely end up in Iowa, where seed giant DuPont Pioneer has its agriculture operations in Johnston, or Indianapolis, home of Dow AgroSciences' ag chemical and seed operations.

“Where the corporate headquarters is is still up in the air, but I have a feeling that it’s very competitive for Iowa,” Grassley said in an interview Friday.

At one point Grassley said he asked the expected head of the agricultural unit where his office would be located, but the senator didn’t get an answer. "That tells me he didn't want to give me any bad news," he said.

DuPont’s Breen told analysts Tuesday that while the two companies haven’t decided where the headquarters for the new company’s agriculture operations will be located, he expected an announcement in the next few weeks.

“It’s something we want to get out there, by the way for a whole bunch of reasons, but the No. 1 reason in my mind is for our employees so they understand and have some clarity on that,” Breen said. “We’re moving as fast as we can to get that announcement.”

Iowa and Indiana are both expected to offer lucrative financial incentives in an effort to sway Dow and DuPont to pick their state. Officials have been tight-lipped on details of the negotiations and what they have offered to woo the new company.

DuPont Pioneer employs about 2,840 workers in Iowa, mostly in Johnston.

If Indianapolis is not chosen as the headquarters of the ag division, it’s possible that Dow could cut jobs in the area.

The Des Moines Register contributed to this report.

Call IndyStar reporter Kris Turner at (317) 444-6047. Follow him on Twitter: @krisnturner.