Formosa Plastics Corporation announced today that it’s planning a $332 million expansion of its Baton Rouge PVC production plant.
The project, according to Plant Manager Paul Heurtevant and state and local economic development officials, will create 15 new direct jobs with an average annual salary of $77,667, plus benefits. Louisiana Economic Development estimates the project will result in 66 new indirect jobs, for a total of 81 new jobs in East Baton Rouge Parish and the Capital Region. Formosa Plastics also will retain 230 existing jobs. The expansion work is expected to create 500 construction jobs beginning in early 2020.
The Formosa Plastics Baton Rouge facility, opened in 1981, consists of three operating units to produce PVC used in the construction industry, flooring, piping and siding.
“Louisiana is one of only a few areas uniquely qualified with the resources and infrastructure to support our industry, allowing us to diversify our production across our locations, further adding to the reliability of supply for our customers,” Heurtevant said in a press release.
The project will include the installation of new machinery and equipment for the expansion of the PVC resin production unit, expected to result in a 20% increase in production capacity and sales.
BRAC and LED began discussing potential expansion plans with FPC in March 2019, and the company considered a Texas location before committing to Louisiana. To secure the project, LED offered Formosa Plastics an incentive package that includes a performance-based grant of up to $500,000. The company also is expected to utilize the state’s Quality Jobs and Industrial Tax Exemption programs. Read the full announcement.