Ground was broken today on a $3 billion chemical manufacturing project in Lake Charles. The project—LACC LLC— is a joint venture of South Korea’s Lotte Chemical and Atlanta-based Axiall, which has existing manufacturing plants in Calcasieu Parish.
The project will include a $1.9 billion ethane cracker complex and a $1.1 billion monoethylene glycol plant constructed adjacent to the ethane cracker.
Both plants are expected to begin operating in 2019.
Louisiana Commissioner of Administration Jay Dardenne and Louisiana Economic Development Don Pierson joined Korean ambassador Ahn Ho-Young, Lotte Group Chairman Shin Dong-Bin and Axiall CEO Tim Mann for the groundbreaking ceremony.
“Among Korean petrochemical companies, Lotte Chemical is the first to locate a project in the United States; as such, this project represents a significant investment by Lotte Chemical,” Lotte Chemical President and CEO Soo Young Huh said in a statement.
Axiall will use its portion of the ethylene output to make vinyl chloride monomer, a precursor to plastics, and other products, such as caustic soda, chlorine and ethylene dichloride, LED said. Lotte Chemical will make monoethylene glycol, commonly called MEG, which is an important ingredient in the making of paper, textile fibers, latex paints, asphalt, resins, antifreeze, coolants and adhesives. It is expected to be the largest MEG plant in the U.S.
Axiall and Lotte Chemical announced the joint investment in December 2013. According to LED, Lotte Chemical will be the sole owner of the MEG plant. Once completed, the plant will produce 700,000 tons per year of MEG for export to customers abroad.
The ethanol cracker is designed to have an annual capacity of 1 million tons, which will be shared between the two companies.
The project is expected to create 215 new direct jobs. The ethane cracker is projected to create 135 possible new indirect jobs; the monoethylene glycol facility, 80 new direct jobs.
LED estimates the combined projects will result in 1,892 new indirect jobs, for a total of more than 2,100 new jobs in Southwest Louisiana.
With its project, Axiall will retain 1,600 existing workers in the Lake Charles area.
