Shell Chemical plans to invest $717 million at its Geismar plant to develop a new linear alpha olefins manufacturing unit, the company announced this morning.
The manufacturing unit will produce alpha olefins, chemicals that are used to produce a variety of consumer and industrial products including plastics, synthetic lubricants, drilling fluids and household detergents. Shell says its linear alpha olefins unit will generate 425 kilotons per year, making its Geismar plant the largest alpha olefins production site in the world. Construction will begin during the first quarter of next year, with the unit is expected to begin operations in 2018.
The project is expected to create 20 new direct jobs at the Geismar plant, which employs about 650 people total and has been in operation since 1967. The new jobs will pay an average salary of $104,000, plus benefits.
Louisiana Economic Development estimates the project will also result in an additional 93 new direct jobs in the Capital Region, and the company expects construction will require 1,000 workers at peak building activity.
The alpha olefins unit will be the fourth at Shell’s Geismar plant, which is located on roughly 800 acres at River Road and La. 3251 on the east bank of the Mississippi River.
The state is providing Shell an incentive package that includes workforce development assistance via LED’s FastStart program. The company is also expected to benefit from the state’s Enterprise Zone and Industrial Tax Exemption programs. The former provides for a one-time $2,500 tax credit for each new job created, as well as a 4% rebate of sales taxes paid on materials, machinery, furniture and equipment, and a 1.5% refund on the total capital investment. The later provides for a full abatement of property taxes for a decade on new capital investment.
