Thailand-Based Indorama Ventures Restarts Ethane Cracker Near Lake Charles, Louisiana
Based in Bangkok, Thailand, Indorama Ventures Public Co. Ltd. has through its U.S. subsidiary, Indorama Ventures Olefins, acquired the dormant ethane cracker facility and approximately 250 acres. With the project, IVL will create 125 new direct jobs.
IVL already produces purified ethylene oxide and mono ethylene glycol in the U.S., with ethylene being the primary feedstock. The project in Carlyss will generate a production capacity of 370,000 metric tons of ethylene and 30,000 metric tons of propylene per year, with the facility capable of processing both ethane and propane. IVL currently runs intermediate petrochemical manufacturing sites located in Texas, Alabama, Georgia, North Carolina and South Carolina.
“This acquisition will make us well-placed to receive cost-advantaged ethane and propane feedstock,” Group CEO Aloke Lohia said. “We are targeting a commercial startup before the end of 2017, which will make us the first Thai company to take advantage of the shale gas revolution in the United States and ahead of the greenfield crackers being constructed. We are excited for this opportunity to join the Louisiana business community.”
Louisiana Economic Development began project discussions with Indorama Ventures in April 2015. To secure the project, the State of Louisiana offered the company a competitive incentive package that includes a $1.5 million performance-based grant to offset site infrastructure costs. IVL also will receive the comprehensive workforce solutions of LED FastStart. In addition, the company is expected to utilize Louisiana’s Quality Jobs and Industrial Tax Exemption programs.
Governor Bobby Jindal said, “With our world-scale infrastructure and outstanding workforce talent, Louisiana is leading the industrial renaissance in the U.S., with record levels of new petrochemical, processing and energy projects underway in our state. Increasingly, we are witnessing the arrival of more international investors to our state because they recognize Louisiana offers the perfect blend of workforce, logistics and business climate advantages. Because we have made our state more attractive and competitive, Indorama Ventures and other investors are helping our state create record levels of employment that will benefit Louisiana families for generations to come.”
“This announcement is yet another win for Calcasieu Parish, Southwest Louisiana and the entire state,” said President Nicholas Hunter of the Calcasieu Parish Police Jury. “The continued economic development that we enjoy is a testament to our infrastructure and business climate, but more importantly it is a testament to the citizens and local entities that work together to attract projects that will positively impact our local economy and ensure long-term sustainability.”
“We are pleased to welcome Indorama to Southwest Louisiana,” said President/CEO George Swift of the Southwest Louisiana Economic Development Alliance. “This is another example of an international company investing in our industrial complex. Indorama will renovate a closed plant into a modern state-of-the-art production facility and bring new jobs to our region.”
Supply Chain Bottlenecks Creating New “Logistical Hotspots”
The “Great Resignation” Is Impacting Corporate Relocations
Workforce Q4 2021
Changes in the Incentives Landscape
2020 Top States for Doing Business Showcase Their Pro-Business Environments
2021 Gold & Silver Shovel Awards Recognize State and Local Economic Development Efforts
How an International Business Can Enter the U.S. Market Via M&A