By Adelina Osan, Associate Editor
Formosa Petrochemical Corp. is looking into St. James Parish to find room for an industrial complex worth approximately $9.4 billion. The company plans to build two project phases producing ethylene and a host of downstream chemical products.
The company’s decision to develop the project would affect Louisiana’s economy by creating 1,200 new direct jobs with an average annual salary of $84,500, and an estimated of 8,000 new indirect jobs.
The State of Louisiana offered a competitive incentive package that would include a $12 million performance-based grant to offset infrastructure costs, with the grant to be paid in four equal annual installments beginning in 2018, in order to secure the project.
“Formosa’s desire to develop a new world-scale chemical complex in Louisiana excites us on a number of levels. This tremendous capital investment signals that the many reforms we have installed to improve Louisiana’s business climate are succeeding—from our tax structure to workforce development programs to school choice and governmental ethics. This project also is a testament to Louisiana’s ability to deliver world-class infrastructure and logistics solutions that attract the world’s most important and innovative companies. Most important for our state, this major petrochemical investment will provide high-paying jobs for Louisiana families for generations to come. We look forward to Formosa’s final decision to embark on this game-changing project,” said Governor Jindal in prepared remarks.
If Formosa decides to move forward with the project, construction and development of the initial phase are planned for the beginning of 2016, with hiring starting 2018. Following the completion of the first phase, construction for the second-phase ethane cracker and downstream chemical plants could begin in 2022.
Photo credits: Formosa Petrochemical Corp.