Yuhuang Chemical to invest $1.85bn in methanol complex

18 Jul '14

5 min read

“Building a new world-scale methanol unit in Louisiana is Shandong Yuhuang’s first major step in becoming a global player in the petrochemical industry,” Yao said. “While the company has long been highly regarded in China as one of its primary contributors to the industry in Asia, this Louisiana operation represents the company’s commitment to significance on the world petrochemical platform.

"Louisiana was the right choice for our company to locate our first operation in the United States. This facility’s location fits well with our strategy to leverage the advantage that natural gas feedstock provides. Our goal is to maximize technology innovation and develop our company into a petrochemical and fine chemical world leader, with an equally important reputation for being a resource-efficient and environmentally friendly global enterprise.”

Yuhuang Chemical has selected China Huanqiu Contracting & Engineering Corp., known as HQC, to complete engineering work for the project. The company has licensed methanol technology from Air Liquide Global E&C Solutions. Hiring will begin in 2015, with employment reaching 200 by 2017 and 400 six years later.

LED began discussing the potential project with Yuhuang Chemical in February 2014. 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, ranked the No. 1 state workforce training program in the country, and Yuhuang Chemical also is expected to utilize the state’s Quality Jobs and Industrial Tax Exemption programs.

“On behalf of all of St James Parish, we are excited about this announcement of Yuhuang Chemical Inc.,” St. James Parish President Timmy Roussel said. “We welcome them to our diverse business and industrial family. This project should aid in bringing our unemployment levels even lower than the reductions already realized and also work well with improving our present economic situation. I would like to thank Yuhuang Chemical for considering St. James Parish and the River Region as their place to do business. I look forward to a healthy relationship.”

“We are happy to welcome Yuhuang Chemical to the Port of South Louisiana, St. James Parish and the River Region,” said Executive Director Paul Aucoin of the Port of South Louisiana. “With expected methanol exports of up to 3 million metric tons annually, the company will not only create 400 well-paying jobs within our district, but also enhance the Port of South Louisiana’s standing in foreign trade and maintain our standing as the largest energy transfer port in the United States.”

Louisiana Government

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