April 23, 2018
The Times-Picayune (NOLA.com)
St. James Parish chosen for $9.4 billion Formosa ethylene plant
Formosa Petrochemical Corp. plans to build a $9.4 billion industrial complex near the Sunshine Bridge in St. James Parish, state officials announced Monday (April 23). The ethylene production complex would generate 1,200 new direct jobs with an average annual salary of $84,500, according to the state's Economic Development department.
The Taiwan company, which has been studying potential sites for several years, has purchased a 2,400-acre site on the parish's west bank along the Mississippi River.
"Given the history of St. James Parish, this will be the largest industry ever welcomed," Parish President Timmy Roussel said in a news release. "This plant alone will almost double the present tax base. Assisting our unemployed and underemployed residents of the community is a priority in St. James Parish. Thus, a company like Formosa, of this magnitude, surely can help to remedy a lot of our community's needs."
State officials said an economic impact study completed by LSU economist James Richardson forecasts that construction of the complex would generate $362 million in new state and local tax revenue and an additional $313 million in tax revenue during the first decade in operation starting in 2020, according to state news release about the project.
The project, which still has to gain state and local permits, would be built in two phases over the next 10 years. Pending the completion and approval of permits for the site, construction could begin in 2019.
The industrial complex would produce ethylene, propylene, polymer and ethylene glycol that are used to make products that includes car casings, plastic bottles, grocery bags, drainage pipes, ropes, artificial turf, polyester clothing, antifreeze and playground equipment, according to the company's website.
Formosa plans to operate the complex under its subsidiary and Louisiana registered company, FG LA LLC, according to a news release.
Formosa Plastics Group operates three existing Louisiana facilities with 410 employees in East Baton Rouge and Pointe Coupee parishes.
To secure the project, dubbed The Sunshine Project, the state offered the company a $12 million performance-based grant to be paid in four installments, starting in 2021, the year hiring for permanent jobs would begin.
Under the agreement, Formosa would also receive workforce training assistance from the state and payroll and industrial tax breaks.