Taiwan-based Formosa Petrochemical Corp. is studying the feasibility of building a $9.4 billion industrial complex in St. James Parish to produce ethylene and other chemical products, company officials and Gov. Bobby Jindal announced this afternoon.
A final investment decision is expected in mid-2016. If Formosa decides the investment makes financial sense, it would move forward with construction on the first phase of the project in late 2016, with hiring to begin in 2018. The project would create 1,200 new direct jobs paying an average annual salary of $84,500, plus benefits, Louisiana Economic Development estimates.
The state is offering Formosa an incentive package that includes a $12 million performance-based grant to offset infrastructure costs, with the grant to be paid in four equal annual installments beginning in 2018.
Formosa also would receive workforce development assistance via LED’s FastStart program, and it would benefit from Louisiana’s Quality Jobs and Industrial Tax Exemption programs. The former program provides a cash rebate of up to 6% of the company’s payroll for up to a decade for new jobs created, while the latter offers a full abatement of local property taxes for up to a decade on new capital investments.
The $9.4 billion project would be built in two phases on the west bank of the Mississippi River near the Gramercy bridge and would represent one of the largest single-site ethylene production complexes in the world.
Formosa operates Taiwan’s only privately owned oil refinery and naphtha cracking complex, serving global industrial activities that include oil refining, petrochemicals, plastic raw materials, secondary processing of plastics, electronic materials, machinery and transportation. Formosa has had a presence in Louisiana since 1981, with three plastics manufacturing locations in East Baton Rouge and Pointe Coupee parishes.
LED has more details on today’s announcement.