Occidental Chemical Corp. announced this morning plans to spend $145 million to expand its Geismar manufacturing plant, including adding equipment to produce a new raw material used in making climate-friendly refrigerants.
The company, also known as OxyChem, plans to begin work on the expansion next month and complete the project late next year. The company manufactures chlorine, caustic soda, hydrogen, chlorinated organics, ethylene dichloride and potassium hydroxide in Louisiana. Aside from its Geismar plant, it has facilities in Convent, Luling and Hanville, where it also generates surplus electricity.
The company’s operations account for about 1,000 jobs in the state, with approximately 400 working at the Geismar plant. Louisiana Economic Development estimates the expansion at the Geismar plant will create an additional 12 new direct jobs, and another 37 new indirect jobs in the area.
OxyChem’s new product will enable next-generation refrigerants to be efficiently produced and are expected to to have low global warming and ozone depletion potential, according to a news release issued this morning.
OxyChem President Rob Peterson notes the expansion plans are being announced as the Dallas-based company—a wholly owned subsidiary of Occidental Petroleum Corporation—marks 50 years of doing business in Louisiana.
“This project further demonstrates our commitment to growing our opportunities in the state,” he says in a prepared statement. “OxyChem intends to utilize its leading-edge technology to produce world-scale quantities of next-generation raw materials to meet the growing demand for climate-friendly refrigerants.”
