China-Based Shandong Yuhuang Chemical Begins Construction Of $1.85 Billion Methanol Plant In St. James Parish, Louisiana
“Yuhuang Chemical Inc. selected Louisiana for our project for a number of reasons: Outstanding selection of greenfields for large development; working with the team at Louisiana Economic Development and the incentives the state offered; the supportive community in St. James Parish; and a business-friendly environment ultimately made our decision straightforward,” Yuhuang Chemical Inc. President/CEO Charlie Yao said. “The establishment of relationships in the communities in which we operate is important to myself and the YCI team. We want to be a good corporate citizen, a good neighbor, and a partner in the community. Our groundbreaking ceremony today is an important milestone for our company and the St. James community. YCI is committed to the development of a world-scale manufacturing complex in St. James Parish, and we look forward to a long business relationship with both the parish and the State of Louisiana.”
The company announced the project in July 2014, after which it purchased more than 1,300 acres next to the Plains All-American Pipeline terminal and finalized plans for the three-phase project. After the first methanol plant is completed, the company will execute its multiphase strategy and develop two additional manufacturing projects on the property over the next 10 years. The company projects 50 percent of the methanol produced by the first phase will be sold to North American customers. The remaining 50 percent will be exported globally, where approximately 15 percent to 25 percent could be used by Shandong Yuhuang Chemical Co. Ltd. in China.
To secure the project, Louisiana offered the company a competitive incentive package that includes two performance-based grants: $9.5 million to be paid over five years beginning in 2017 to offset infrastructure costs of the project and $1.75 million to be paid over 10 years to partially defray the costs of necessary riverfront access and development. In addition, the company will receive the comprehensive workforce solutions of LED FastStart. Yuhuang Chemical also is expected to utilize the state’s Quality Jobs and Industrial Tax Exemption program.
“More than ever before, Louisiana represents a state of true economic opportunity. We are proud of the policies we have implemented and the hard work we’ve performed to make Louisiana’s business climate one of the best in the U.S. and the world. Our reforms to the state’s workforce development system, governmental ethics laws, tax structure, education system and other arenas have produced a Louisiana we can truly be proud of, a more competitive state that has benefited our existing employers and workforce first and now is attracting global investment to our state in record numbers. We welcome Shandong Yuhuang Chemical and Yuhuang Chemical Inc. to our state, as we recognize that our joint efforts in St. James Parish will produce extraordinary economic benefits and a better way of life for Louisiana families for many generations to come”, said Governor Bobby Jindal.
“The Port of South Louisiana, the largest tonnage port in the United States, welcomes Yuhuang Chemical to the port and the River Parishes,” said Port of South Louisiana Executive Director Paul Aucoin. “The port is pleased to have played a role in having Yuhuang choose St. James Parish. We look forward to working with Chairman Jinshu Wang and CEO Charlie Yao and assisting the company in any way we can. We are fortunate to have a company that will bring to our area 400 new direct jobs with an average salary of $85,000. The port congratulates Yuhuang for breaking ground on this $1.85 billion project.”
“Greater New Orleans Inc. is thrilled to help commemorate the initiation of Yuhuang Chemical’s world-class development in St. James Parish,” GNO Inc. President/CEO Michael Hecht said. “This project will provide over 2,700 total jobs to the region, and marks the first major investment by a mainland Chinese company in the history of Louisiana. We look forward to working with the outstanding Yuhuang Chemical team for years to come.”
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