A Chinese firm has announced that it will develop a $1.12 billion chemical manufacturing complex in Louisiana, with plans to select the site for the project later this year.
Gov. John Bel Edwards and Wanhua Chemical Chairman and CEO Zengtai Liao announced plans for the complex today.
The project is second only to the $1.85 billion methanol complex along the Mississippi River in St. James Parish that Yuhuang Chemical is developing in terms of Chinese investment in Louisiana manufacturing.
Wanhua Chemical’s Louisiana complex will produce methylene diphenyl diisocyanate, which is used in polyurethane foams and elastomers, with applications in areas like appliances, electronics, furniture, textiles and footwear, a Louisiana Economic Development news release says. MDI is commonly used in the development of rollers, packing, vibration insulators and synthetic leather. LED adds MDI is among the fastest-growing categories of chemical production.
Wanhua’s will invest $954 million in the project, with its partners adding another $166 million to the project’s capital costs. LED says the firm selected Louisiana for its new project because of the state’s immediate access to an abundant supply of natural gas and other feedstocks. Deepwater transportation via the Mississippi River also made Louisiana a natural fit, LED says.
“Wanhua Chemical carefully executed its long-term MDI strategy and selected Louisiana as the best place in the world for its investment in this fast-growing category of chemicals,” LED Secretary Don Pierson says in a statement. “Not only is Louisiana home to an existing $68 billion chemical manufacturing sector that supports more than 135,000 jobs, we are attracting next-generation investments that assure our leadership in the 21st century.”
LED expects the project to create 170 new direct jobs with an average annual salary of $70,440, plus benefits and another 945 new indirect jobs.
State officials began discussing a potential project with Wanhua in December 2013. LED says it has offered the firm an incentive package that includes LED FastStart, a performance-based grant of $4.3 million to offset site infrastructure costs, and use of the state’s Quality Jobs and Industrial Tax Exemption programs.
Wanhua’s Louisiana facility will be a major component of the firm’s global development of MDI.
“Wanhua looks forward to being part of the Louisiana business community and the local community where we will build our operations,” Liao says in a statement. “Our desire to be a good industry neighbor will be evident in our focus on workforce development, local hiring and our commitment to safe and environmentally responsible operations. Our employees will be fully engaged in the local community and we will communicate regularly and openly.”
