A\u00a0Chinese chemical company has agreed to build a $1.12 billion chemical manufacturing plant in Louisiana after the state’s economic development arm\u00a0promised it a $4.3 million infrastructure grant.<\/p>\n
The agreement between Wanhua Chemical Group and Gov. John Bel Edwards’\u00a0administration caps more than three years of negotiations and marks the second-largest Chinese investment in Louisiana’s chemical manufacturing industry. Yuhuang Chemical is developing a $1.85 billion methanol complex in St. James Parish.<\/p>\n
Louisiana Economic Development, or LED, estimates the Wanhua project will create 170 direct jobs\u00a0and 945 indirect ones.<\/p>\n
The company is still mulling where to build. Once operational, its\u00a0complex will manufacture methylene biphenyl diisocyanate, or MDI, a major chemical in most insulation foam for refrigerators and freezers. It’s also used for rollers, packing materials, furniture, footwear and synthetic leather.<\/p>\n
As part of the deal, Wanhua will tap state tax exemption programs. The Industry Tax Exemption Program exempts a company from property taxes on its new complex for 10 years. The Quality Jobs Rebate program grants a 6 percent rebate for 10 years for up to 80 percent of a company’s payroll for new direct jobs. In July 2018, the company’s Louisiana payroll will be eligible, according to the LED.<\/p>\n
Wanhua is expected to use the $4.3 million state grant to offset some of its infrastructure costs. Wanhua itself will pump $954 million into building the complex. Project partners plan to deliver the remaining $166 million in construction costs, according to the project’s announcement.<\/p>\n
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