As Formosa Plastics Group seeks permits to build a $9.4 billion industrial complex in St. James Parish more than a year after first announcing plans for the project, the state’s economic development chief says incentives offered to the company in 2015 are still on the table.
In a statement, Louisiana Economic Development Secretary Don Pierson says LED has been “fully engaged” with Formosa, and there have been no delays on the state’s part to bring the project to fruition.
“The late 2015 announcement of the project occurred while plans were still in the feasibility phase,” Pierson says. “Many milestones must be reached in a project of this magnitude, and the company has been working at its appropriate pace.”
Formosa officials are waiting on the state to approve the project’s construction permits, according to Bloomberg. A spokesperson for the Louisiana Department of Environmental Quality says the state has received Formosa’s permit application. The company, however, has indicated that it intends to make changes to the application, which will not be reviewed until the edits are made.
Formosa officials and former Gov. Bobby Jindal first unveiled the Taiwan-based company’s plans to build new petrochemical facilities in Louisiana in September 2015. The facilities would produce ethylene and other chemical products.
At the time, Louisiana offered Formosa an incentive package that includes a $12 million performance-based grant to offset infrastructure costs. The incentives are contingent on the company’s investment in Louisiana, completion of the project and the hiring of Louisiana workers for jobs. The project, LED estimated, would create 1,200 new direct jobs with an average annual salary of $84,500, plus benefits. Business Facilities even hailed the project as one of the top three deals of 2015, and a final decision on whether to move forward with the project was expected in mid-2016.
“The $9.4 billion project would create one of the largest ethylene production complexes in the world. Louisiana is proud that Formosa is focusing on St. James Parish for this landmark project,” Pierson says.
And the state, he says, will play its part.
“Louisiana is prepared to execute its roles in the project, including permit approvals, in a responsive and responsible manner,” says Pierson. “There have been no undue delays on the state’s part.”
—Alexandria Burris
