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Dongsung FineTec Plans Cyrogenic Manufacturing Facility In Calcasieu Parish, Louisiana

12/03/2015
South Korea-based Dongsung FineTec Co. Ltd. will create 250 new direct jobs and make a $5 million capital investment in a cryogenic insulation manufacturing facility in Lake Charles, Louisiana.

The company, which provides specialized high-performance insulation to liquefied natural gas plants and other industrial sites around the world, will lease an 11-acre site at the Port of Lake Charles’ Industrial Park East for its manufacturing complex. The site includes the former Spartech plastics compounding plant. The 59,000-square-foot building will be renovated for specialized insulation production.

“We are very excited to be expanding our activities to the U.S.,” Senior Vice President James Choi said. “The help and assistance of the Port of Lake Charles has been central to our decision. Clearly, the U.S. and Southwest Louisiana are becoming significant players in the LNG industry. We have made a commitment to continue supporting our existing international customers here in the United States.”

“We feel confident that our world-class insulation technology can add value to all manner of projects within the U.S. We feel the market, even in these times of low oil prices, has a bright future in relation to the developing natural gas industry. Through technology-transfer and providing local long-term opportunities for residents in Lake Charles, we will be able to offer a positive long-term impression on the community. Our plans are for the long-term broader U.S. and Americas markets. We are not specific project-driven: We are here for the long haul,” he added.

Louisiana Economic Development began discussing a potential project with the company in February 2015. To secure the project, the state offered a competitive incentive package that includes the comprehensive solutions of LED FastStart - the top-ranked state workforce development program in the nation. The company also is expected to utilize Louisiana’s Quality Jobs and Industrial Tax Exemption programs.

Governor Bobby Jindal said, “We have seen several multibillion-dollar investment announcements in Southwest Louisiana with the region’s development as an international center for liquefied natural gas exports. Building on that foundation, this project represents the next tier of success – major investments by support industries that will help the LNG industry reach its full potential here. Dongsung FineTec and companies like them are being drawn to Louisiana by our world-class energy infrastructure, skilled workforce and strong business climate, and these attributes will continue to encourage major investments in Louisiana as we continue to grow. As a result, our state will be well-positioned as a leader to meet global energy needs for decades to come, while continuing to create great jobs for Louisiana families.”

According to LED, the Lake Charles project is the company’s first manufacturing investment in the U.S., with the site expected to be fully operational by May 2016. Dongsung FineTec is the world’s largest maker of cryogenic insulation for the LNG industry. Its cryogenic insulation panels are designed to keep liquefied natural gas cold at minus-163 degrees Celsius to facilitate storage and transport. The company also manufactures urethane foam insulation storage tanks and other insulation products for industrial applications. Dongsung FineTec has developed fuel tank and insulation solutions for smaller and midscale LNG operations as well as large-scale plants.

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