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Occidental Chemical Plans $145 Million Expansion At Geismar, Louisiana, Manufacturing Plant

04/18/2016
Occidental Chemical Corp., a wholly owned subsidiary of Occidental Petroleum Corporation, plans a $145 million expansion of the company’s manufacturing plant in Geismar, Louisiana. The project includes adding equipment for producing a new raw material to be used in making next-generation, climate-friendly refrigerants.

Based on patented research and development by OxyChem, the new product would enable the efficient production of next-generation refrigerants, which have low global-warming potential and ozone depletion potential, according to Louisiana Economic Development.

In Louisiana, OxyChem manufactures and distributes chlorine, caustic soda (sodium hydroxide), hydrogen, chlorinated organics, ethylene dichloride and potassium hydroxide. In addition to Geismar, OxyChem has facilities in Convent, Luling and Hahnville, where it also generates surplus electricity. OxyChem’s operations in Louisiana account for approximately 1,000 jobs, including employees and contractors.

“OxyChem is proud to be celebrating its 50th year as a part of the Louisiana business community, and this project further demonstrates our commitment to growing our opportunities in the state,” Occidental Chemical Corp. President Rob Peterson said. “OxyChem intends to utilize its leading-edge technology to produce world-scale quantities of next-generation raw materials to meet the growing demand for climate-friendly refrigerants.”

Construction work for the expansion will begin in May 2016 with completion anticipated in late 2017. As an incentive, OxyChem is expected to utilize Louisiana’s Quality Jobs and Industrial Tax Exemption incentive programs.

“We’re proud to see great employers like Occidental Chemical continue to make new investments in Louisiana,” Governor Jon Bel Edwards said. “This expansion testifies to the productivity of our highly skilled, Louisiana-grown talent, and we commend OxyChem for their dedication to our state. With many decades of operation here, OxyChem is unfolding a new chapter of success in Louisiana while retaining existing jobs and adding great new career opportunities.”

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