BASF Geismar plans for its fourth major expansion in Louisiana, with the building of a new $42.6 million polyurethanes blending plant in Geismar, Louisiana
, creating 22 jobs.
The blending facility will create greater efficiency and shorten its supply chain to customers. Polyurethanes produced by BASF are supplied to other manufacturers who fashion them into leading automotive, furniture and construction industry goods.
The new project brings the company’s total capital investment in Louisiana to more than $350 million since 2009. The new polyurethanes blending facility follows a surfactants plant scheduled to begin production next year, a formic acid plant announced in 2012 and a methylamines plant completed in 2011. The new employees will join more than 2,000 existing BASF direct employees and contract workers who work in Geismar.
Gov. Bobby Jindal said, “Today’s announcement is great news for Ascension Parish and our entire state. BASF continues to be one of the largest economic drivers in Louisiana, investing more than $350 million in projects since 2009. The continued success of this Geismar chemical complex led to today’s latest expansion, which will allow BASF’s polyurethane blending to take place right here in Louisiana rather than being shipped out-of-state. Once again, our strong business climate, world-class infrastructure and incomparable workforce are bringing new business investment to Louisiana.”
“This project demonstrates our commitment to the future growth in this region and market,” said Senior Vice President Tom Yura Geismar, who is also general manager of the Geismar site. “The project also further strengthens our position as a leading supplier of chemistry for sustainable solutions.”
To secure the project, LED’s Business Expansion and Retention Group, provided a custom incentives package that includes a $1.2 million Modernization Tax Credit, to be claimed over five years. In addition, the company is expected to utilize the state’s Quality Jobs and Industrial Tax Exemption programs. Construction of the blending facility will begin this month and be completed in the second quarter of 2015, with hiring of the new positions also taking place in 2015.
“BRAC congratulates BASF on their continued growth in the Capital Region. Through their work with the regional economic development partners, their investments have created critical jobs in the Baton Rouge area,” said Adam Knapp, President and CEO of the Baton Rouge Area Chamber. “BASF sets a great example by strengthening and building their company utilizing the assets of our region.”