Consultants Forum Advertise
Subscribe
Close

  • Free for qualified executives and consultants to industry

  • Receive quarterly issues of Area Development Magazine and special market report and directory issues

Subscribe Now
Renew

Area Development - Site Selection, Facility Planning and Workforce Development

Eastman Expands Chemical Plant in St. Gabriel, Louisiana

06/27/2019
A global specialty materials company that produces a broad range of products, Eastman will make a $70 million capital investment over the next three years to expand and modernize its manufacturing operations in St. Gabriel, Louisiana. The project will include a new Chemical Intermediates production facility.

According to Louisiana Economic Development, the St. Gabriel site produces a wide range of amines, or ammonia-derived compounds, that are used in feed, food, personal care and agricultural markets. In addition to a new unit and laboratory, the company’s investment will result in upgrades to the plant’s control and reliability capabilities over the next three years.

The St. Gabriel site is owned and operated by Taminco US LLC, a subsidiary of Eastman. Headquartered in Kingsport, Tennessee, Eastman acquired Taminco Corp. in December 2014. Taminco’s former Specialty Amines and Crop Protection businesses were incorporated into Eastman’s Additives and Functional Products operating segment, while the Taminco Functional Amines operations were incorporated into Eastman’s Chemical Intermediates segment.

“We’ve been a part of this community for over 40 years and for us, this is home,” said Eastman Site Manager Tim Harris, who oversees the St. Gabriel facilities. “We will be better-positioned to win with our customers through additional capacity, improvements in reliability, and new resources to innovate. Eastman has choices about where to invest, and this makes it easier to choose here. That’s a great testament to the plant and the region, and it would put us in a good position to compete for future projects within Eastman.”

LED began discussions with Eastman on a potential facility expansion in May 2018. Louisiana faced competition from other locations for the new investment, including sites in Florida, Texas and Belgium. The state provided a competitive incentive package for the project, including a $250,000 Modernization Tax Credit. Additionally, the company is expected to utilize Louisiana’s Enterprise Zone and Industrial Tax Exemption programs.

“Eastman has proven to be a great community partner,” said St. Gabriel Mayor Lionel Johnson Jr. “This $70 million investment is an opportunity to upgrade equipment and operations, which is a positive thing for the company and the community. We look forward to a sustained community-partner relationship as this initiative moves forward.”

“Eastman’s investment in its St. Gabriel facility affirms the company’s commitment to Louisiana and its people, especially our highly skilled, specialty chemicals workforce,” Governor John Bel Edwards said. “Louisiana is known throughout the world for our high-performance industrial sector and our strong transportation infrastructure. We are proud that Eastman recognizes these strengths and is upgrading its facility to ensure its presence in our state for years to come.”

“When a company such as Eastman decides to expand its footprint here in Iberville Parish, that is exciting news,” said Iberville Parish President Mitchell Ourso. “The Iberville Parish Council congratulates Eastman on their announcement and says thank-you for making the investment in their future right here in Iberville Parish.”

“Our team has been happy to work in close collaboration with partners in Iberville Parish to assist Eastman with this expansion,” said President & CEO Adam Knapp of the Baton Rouge Area Chamber. “This project is the first to pass through Iberville Parish under the new ITEP regulations, and we are grateful to stakeholders in Iberville for recognizing the incredible importance of supporting local industry.”

Share

Exclusive Research