Taiwan’s Formosa plans to build $9.4bn petrochemical complex in Louisiana, US
Taiwan-based Formosa Petrochemical is planning to build a $9.4bn petrochemical complex in St James Parish in the US state of Louisiana.
Planned to be built in two phases on the west bank of the Mississippi River, the complex will feature an ethane cracker and downstream plants to convert ethane to ethylene and then produce polyethylene.
The facility will produce low and high-density polyethylene, ethylene glycol, polypropylene and other derivatives.
Following completion of two phases of the project, the complex will become one of the largest-of-its-kind ethylene production sites worldwide.
Formosa is studying the feasibility of the project, and is expected to make a final investment decision by mid-2016.
While construction and development of the initial phase would begin in 2016, the second-phase project work is planned to start in 2022.
The project would support the region with 1,200 direct jobs, and 8,000 indirect jobs, Louisiana Economic Development said.
Louisiana Governor Bobby Jindal said: "This tremendous capital investment signals that the many reforms we have installed to improve Louisiana's business climate are succeeding, from our tax structure to workforce development programmes to school choice and governmental ethics.
"This project also is a testament to Louisiana's ability to deliver world-class infrastructure and logistics solutions that attract the world's most important and innovative companies."
The Louisiana state has agreed to offer an incentive package to Formosa for the project, including a $12m performance-based grant beginning in 2018.