Honeywell Plans $208 Million Expansion At Its Four Louisiana Production Plants
Area Development Online News Desk (07/15/2013)
Honeywell will invest $208 million in new manufacturing projects at its four production sites in Louisiana. The projects in Baton Rouge, Shreveport and Geismar, Louisiana will retain 698 existing jobs and create 42 new jobs.
The projects will be completed at Honeywell Performance Materials and Technologies facilities that include fluorine products production operations in Baton Rouge and Geismar; a catalyst production facility in Shreveport; and an adsorbent production facility in Baton Rouge for the UOP business unit of Performance Materials and Technologies.
Honeywell will expand product offerings into catalysts, refrigerants and adsorbents while improving the competitiveness of sites in Caddo, East Baton Rouge and Ascension parishes. Of this total, $169 million will be invested for engineering and new production capacity for new products and $39 million will be invested to support ongoing operations.
“The investments we are announcing today will support our global operations and allow us to produce many new in-demand products to support refining processes that produce fuels and petrochemicals, as well as advanced materials that are environmentally friendly and energy-efficient,” Honeywell’s Performance Materials and Technologies President and CEO Andreas Kramvis said. “The support of the State of Louisiana, as well as local governments, was key in our decision to locate production of key new products at our Louisiana facilities, helping to ensure their future viability.”
Gov. Bobby Jindal also said the company is examining the feasibility of additional Louisiana projects that would bring the total new capital investment at Louisiana company sites to $1.2 billion over 10 years. At full investment, the four projects and later future projects would create a combined 291 new direct jobs and result in an estimated 1,009 new indirect jobs, along with more than 2,400 construction jobs.
“Two years ago, we announced Honeywell’s $33 million investment to manufacture new environmentally preferable products here in Baton Rouge because the company took notice of the work we were doing to improve Louisiana’s business climate. Our partnership continues today through an additional round of projects in Ascension, Caddo and East Baton Rouge parishes. We are proud that a global technology leader like Honeywell is choosing to expand its Louisiana manufacturing sites, create more jobs and deliver more performance technologies throughout the world from right here in our state,” Jindal said.
To secure the projects, the state provided a competitive incentives package that includes a performance-based Modernization Tax Credit of up to $15.5 million that will be provided in full if the company makes a total capital investment of at least $690 million and creates at least 175 new direct jobs. Additionally, the company must meet the following targets: a minimum of $400 million in capital investment and 75 new direct jobs in Ascension Parish; $200 million and 75 new direct jobs in Caddo Parish; and $90 million and 25 new direct jobs in East Baton Rouge Parish. In addition, the company is expected to utilize Louisiana’s Quality Jobs and Industrial Tax Exemption programs.