Methanex is spending up to $1.4 billion to construct a third methanol facility in Geismar.
The project will create 62 new direct jobs with average salaries of $80,000 plus benefits, according to a news release from Louisiana Economic Development. LED estimates another 301 indirect jobs.
The three Methanex plants in Geismar will represent one of the largest methanol complexes in the world, according to the announcement. They bring 230 total direct jobs and another 1,500 indirect jobs to the region. The new plant is expected to generate over 1,000 construction jobs.
“Louisiana is a very attractive location for methanol production and the state’s investment attraction programs provide an excellent backdrop for this additional investment,” Mark Allard, Methanex vice president for North America, said in the statement.
The third plant will generate up to 1.8 million metric tons of methanol per year, LED says. It will be built on a 156-acre site.
The state offered the Vancouver-based company a $3 million performance-based grant to offset infrastructure costs. Methanex is also expected to utilize Louisiana’s Industrial Tax Exemption and Quality Jobs programs.
Methanol is an ingredient found in everything from windshield washer fluid to recyclable plastic bottles, plywood floors, paint silicone sealants and synthetic fibers. It is also used in the energy industry for blending in gasoline and other fuels.
Methanex considered other locations in North America before selecting the Louisiana location. Earlier this decade, Methanex reassembled two methanol plants in Geismar with components from methanol units that were decommissioned in Chile and shipped to Ascension Parish. Methanol production began in Geismar in 2015. Methanol production began in Geismar in 2015.
This story was originally published in 10/12 Industry Report. For a weekly rundown on news along the south Louisiana industrial corridor, subscribe to the free 10/12 Industry Weekly e-newsletter by clicking here.