Formosa Plastics to expand Baton Rouge manufacturing site

Formosa Plastics Corp. Louisiana is investing $332 million to expand its production of polyvinyl chloride resin and add production equipment in two other units at the company’s industrial manufacturing site in Baton Rouge, La.

Formosa Plastics Corp. Louisiana, a subsidiary of Formosa Plastics Corp. USA, is investing $332 million to expand its production of polyvinyl chloride (PVC) resin and add production equipment in two other units at the company’s industrial manufacturing site in Baton Rouge, La., on the east bank of the Mississippi River.

The project will include installation of new machinery and equipment for the expansion of the PVC resin production unit, expected to result in a 20% increase in production capacity and sales; installation of new machinery and equipment for a halogenated acid production unit for internal use in the production of vinyl chloride monomer; and installation of utilities equipment needed for operations, the Louisiana Economic Development (LED) said.

Launch of the new operations is scheduled for late 2021 or early 2022, LED said.

The expansion of the existing PVC unit will result in an additional 300 million lb/year of resin production, said Paul Heurtevant, plant manager of Formosa’s Baton Rouge site.

LED estimates the project will create 15 direct jobs and 66 indirect jobs. Formosa also will retain 230 existing jobs.

The expansion project is slated to create 500 construction jobs beginning in early 2020, LED said.

LED said it began discussing potential expansion plans with Formosa in March, and the company considered a Texas location before committing to Louisiana.

To secure the project, LED offered Formosa a competitive incentive package that includes a performance-based grant of up to $500,000. The company also will have access to the Louisiana’s Quality Jobs and Industrial Tax Exemption programs, LED said.

Formosa’s Baton Rouge site currently includes three operating units to produce PVC, a synthetic plastic polymer with a variety of uses in the construction industry, including as insulation on electrical wires, in flooring for buildings needing a sterile environment, and as piping and siding.

Contact Robert Brelsford at rbrelsford@endeavorb2b.com.

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