Calgary-based Inter Pipeline will get $408 million from the Alberta government for its Heartland Petrochemical Complex in Strathcona County, it announced Monday.

The grant is the first approved under the Alberta Petrochemicals Incentive Program (APIP), announced in July. It amounts to just over 10 per cent of the total $4-billion price tag, to be paid out over three years once the propane-to-polypropylene plastic facility is up and running.

The complex has faced construction delays and a cost overrun but is scheduled to be operational in early 2022, producing plastic used in the manufacturing of a wide range of consumer products from car components to medical supplies.

Christian Bayle, president and CEO of Inter Pipeline, applauded the grant program and said it sends a message to the international investment community that future large-scale petrochemical investments are welcome in Alberta.

“In total we expect that roughly $3 billion, or three quarters, of the project construction spend will be invested directly into materials and services provided by Alberta businesses,” he said in a company news release.

The announcement comes after Inter Pipeline’s board of directors urged shareholders to reject a hostile takeover bid from Brookfield Infrastructure Partners LP, noting Brookfield’s bid of $16.50 per share undervalued the business. Inter Pipeline shares were trading above $18 on the TSX Monday.

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