Taiwan-based Formosa Petrochemical has selected St James Parish in Louisiana, US, to establish a $9.4bn chemical manufacturing complex for which the company has purchased a 2,400-acre site along the west bank of the Mississippi river.
The complex, which will be built in two phases near the Sunshine Bridge, will produce ethylene, propylene, ethylene glycol and associated polymers.
Formosa intends to operate the complex under its subsidiary and Louisiana-registered company, FG LA, and is branding the site as ‘The Sunshine Project’.
FG is expected to begin construction as early as 2019 subject to the completion and approval of permits for the site. The 10-year building and development process will be taken up in two phases.
The Sunshine Project is expected to create 1,200 new direct jobs. According to Louisiana Economic Development, the project is also expected to create 8,000 new indirect jobs, for a total of more than 9,000 jobs in the River Parishes and surrounding regions of Louisiana.
Formosa Plastics Group, the parent company of Formosa Petrochemical, operates three Louisiana facilities with 410 employees in East Baton Rouge and Pointe Coupee parishes.
The St James Parish complex will create one of the single-site ethylene hubs and the production will support plastic goods ranging from sports equipment and food packaging to clothing and healthcare and technology products.
For the project, the state of Louisiana offered an incentive package, which includes a $12m performance-based grant to offset infrastructure costs.
Based on the performance of the company in building the complex, FG will receive the grant in four annual installments of $3m beginning in 2021, the first year for hiring permanent jobs.
In addition to receiving the services of state workforce development programme LED FastStart, FG also expects to utilise Louisiana’s Quality Jobs and Industrial Tax Exemption programmes.
By developing the site within the Port of South Louisiana District, FG is set to join the largest port, in terms of tonnage, in the Western Hemisphere.
The port district covers 54 miles between Baton Rouge and New Orleans and falls within the 10-parish economic development region of Greater New Orleans.