Formosa Petrochemical Corp. has purchased a 2,400-acre site along the west bank of the Mississippi River in St. James Parish to build a $9.4 billion chemical manufacturing complex downriver from the Sunshine Bridge.
State and company officials announced the finalized plans—dubbed “The Sunshine Project”—today, though a feasibility study for the project was launched and made public in 2015.
Formosa will develop the project in two phases over a 10-year period, creating 1,200 new jobs with annual salaries of $84,500, officials say. Louisiana Economic Development estimates the project will result in an additional 8,000 indirect jobs.
Taiwan-based Formosa Plastics Group operates three existing Louisiana facilities with 410 employees in East Baton Rouge and Pointe Coupee parishes.
Construction on the St. James complex—which will produce ethylene, propylene, ethylene glycol and associated polymers—could begin as soon as 2019.
Formosa officials say the company will operate the complex under its subsidiary, FG LA LLC, and it will serve as a single-site ethylene hub, supporting an array of plastic goods ranging from sports equipment to food packaging.
An economic impact study by LSU economist Jim Richardson forecast that Formosa’s 10-year construction timeline will yield $362 million in new state and local tax receipts, with an additional $313 million in new state and local taxes during the initial 10 years of operation, beginning in 2025.
Richardson estimates the project will yield $4.7 billion in new personal earnings and $18.5 billion in new business transactions through 2035, state officials say.
To secure the project, Louisiana offered an incentive package that includes a $12 million performance-based grant to offset infrastructure costs, with Formosa, beginning in 2021, receiving the funds in four annual installments of $3 million.
Formosa also is expected to utilize LED FastStart, the state’s Louisiana’s Quality Jobs and Industrial Tax Exemption programs.
