China-based Wanhua Chemical Group Eyes $1.25 Billion Chemical Complex in Convent, Louisiana
20 November 2018
China-based Wanhua Chemical Group Co. Ltd., a company that engages in the research, production and sale of MDI and petrochemical products worldwide, will develop a $1.25 billion chemical manufacturing complex in the St. James Parish community of Convent, Louisiana.
The 250-acre manufacturing site will be developed at the northwest corner of the intersection of Louisiana Highways 3125 and 3214, on the east bank of the Mississippi River with deep-draft river access and available rail service.The project will create 170 new direct jobs.
According to Louisiana Economic Development, Wanhua will leverage its $1.25 billion capital investment to produce MDI, or methylene diphenyl diisocyanate. MDI is commonly used for polyurethane automotive parts, foams and elastomers, with applications in such consumer areas as appliances, electronics, spray-foam insulation, furniture, textiles and footwear.
Wanhua plans to start construction in 2019, with the project generating 1,000 construction jobs at peak activity. The company anticipates construction will be substantially complete by the end of 2021.
“Louisiana, and specifically St. James Parish, provides Wanhua with everything we were looking for,” said CEO Weiqi Hua of Wanhua Chemical U.S. Operations LLC. Hua also serves as Executive Vice President & Chief Technology Officer of parent firm Wanhua Chemical Group. “More than anything, successful operations are about people, and we know that Louisiana’s workforce is among the most productive in the world. Wanhua looks forward to being part of the Louisiana business community and the local community. Our desire to be a good industry neighbor will be evident in our focus on workforce development, local hiring, and our commitment to safe and environmentally responsible operations. Our employees will be fully engaged in the local community and we will communicate regularly and openly.”
To secure Wanhua’s investment, the State of Louisiana offered the company a competitive incentive package that includes the comprehensive workforce solutions of LED FastStart, the No. 1 state workforce training program for the past nine years in a row. The state also offered the company a performance-based grant of $4.3 million to offset site infrastructure costs, and Wanhua is expected to use Louisiana’s Quality Jobs and Industrial Tax Exemption programs.
“This $1.25 billion investment will generate economic growth in our community in the form of high-paying job opportunities for local residents and procurement opportunities for local, small businesses,” said St. James Parish President Timmy Roussel. “I, along with the taxing authorities of St. James Parish, while following our land-use plan, want to see Wanhua become successful in St. James Parish, delivering new benefits to our residents. St. James Parish government works together with community, business, industry, and agriculture to provide resources and services to improve quality of life. We want our St. James Parish industries to continue to be a large part of our community, because St. James Parish is a great place to live, work, play and grow.”
In early 2017, LED Secretary Don Pierson led a Louisiana contingent to Wanhua Chemical’s global headquarters in China, where he, company Chairman Liao and other officials completed plans to move the project forward. The company’s investment will add to a Louisiana chemical industry that generates $80 billion in annual sales, supports more than 267,000 direct and indirect jobs, and benefits from an extensive infrastructure of ports, pipelines, rail and interstate highways.
“Our great integration with existing petrochemical producers and pipelines, and our outstanding universities all play a part in positioning Louisiana as a next-generation leader in the chemical industry,” Pierson said. “Louisiana has leveraged our strengths to capture billions in new investment. We continue to work hard every day to create a business climate and quality of life that are second to none.”
“Our LED team, joining other state agencies and regional and local partners, has worked diligently with Wanhua to attract this next-generation MDI project,” Governor John Bel 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.”