Wanhua Chemical has selected Convent in St. James Parish for its $1.25 billion chemical manufacturing complex, a project the company said will create 170 new direct jobs, the press release reported.
Last year the company said it would build a $1.12 billion facility somewhere in Louisiana, but did not specify a site. Earlier this year, the firm said it was "reevaluating" the project amid worries of increased costs from tariffs between China and the U.S.
In a news release posted last week it will begin construction on the project in 2019 and will put the Convent plant into operation in 2021. The project is expected to support 1,000 construction jobs at peak activity.
The plant will produce methylene diphenyl diisocyanate, or MDI, used in making polyurethanes, a component in products like car seats, furniture, foam insulation and footwear.
The long-planned project's jobs will pay $80,000. Wanhua picked a 250-acre site at the northwest corner of La. 3125 and La. 3214 on the east bank of the Mississippi River in an area with heavy industrial activity. The site has river and rail access.
Weiqi Hua, CEO of Wanhua Chemical U.S. Operations LLC, and Gov. John Bel Edwards announced the site Friday.
“Our LED team, joining other state agencies and regional and local partners, has worked diligently with Wanhua to attract this next-generation MDI project,” Edwards said in a statement.
“Louisiana, and specifically St. James Parish, provides Wanhua with everything we were looking for,” Hua said. “More than anything, successful operations are about people, and we know that Louisiana’s workforce is among the most productive in the world.”
The state offered Wanhua several million dollars’ worth of incentives, including a $4.3 million grant to offset site infrastructure costs as well as access to the workforce development program LED FastStart. The company is also expected to use the state’s Quality Jobs program and Industrial Tax Exemption Program.
Louisiana State has worked diligently with Wanhua for this next-generation MDI project.Gov. Edwards said, “Louisiana offers world-class manufacturing sites, the most productive manufacturing workforce in the U.S., and LED FastStart®, the nation’s top state workforce training program. Our infrastructure assets enable us to compete for the leading economic development projects in the world. We welcome Wanhua to Louisiana and look forward to the company’s contribution to our workforce and economy.”
"The investment in Louisiana has strategic significance to Wanhua’s position as a global supplier for the polyurethane industry,” said Dr. Hua. “It helps us to further strengthen our focus on markets in the Americas. Our goal is to ensure our supply security and flexibility as well as higher-level services that the customers expect from us. We strive to achieve our goal of becoming North American customers’ preferred local isocyanates provider, starting from local production.”