Chinese chemical company to open Louisiana methanol plant

July 23, 2014

A subsidiary of China-based Shandong Yuhuang Chemical Co. Ltd. plans to build a methanol manufacturing facility in Louisiana. It’s estimated the development will create about 400 permanent jobs, Louisiana Economic Development says.

A subsidiary of China-based Shandong Yuhuang Chemical Co. Ltd. plans to build a methanol manufacturing facility in Louisiana. It’s estimated the development will create about 400 permanent jobs, Louisiana Economic Development says.

The $1.85 billion facility, to be located in St. James Parish, will be operated by Yuhuang Chemical, which wants to tap into cheap U.S. feedstock to produce chemicals. The bulk of its production will be exported to China, where the parent company will use it to manufacture downstream chemicals, but about 30 percent of the output is intended for the U.S. market. Construction work at the plant will start in 2016 and first operations are scheduled for 2018. Apart from facility jobs projected, it’s predicted 2,365 new indirect jobs in the area will be created, the LED said.

The methanol manufacturing facility is just the first stage of Yuhuang Chemical's plan for U.S.-based operations. Following construction of the Louisiana plant the company will look to bring its total methanol capacity to 3 million tons annually. At a later stage, a methanol derivatives plant will be added to the complex to produce intermediate chemicals.

According to Yuhuang Chemical CEO Charlie Yao, the methanol facility in Louisiana will be a key step in the company's efforts to enhance its presence in the global petrochemical sector.

Sponsored Recommendations

Choosing The Right Partner for CHIPS Act Investments

As the U.S. looks to invest in the semiconductor research and production using CHIPS Act 2022 funding, it's important to choose the right partner.

EMWD Uses Technology to Meet Sustainability Goals

Eastern Municipal Water District pilots artificial intelligence-enabled control and machine learning to help save energy, reduce costs, and improve quality.

Protein Processing Solutions: Automation & Control

For protein processors looking to address industry challenges, improve efficiency, and stay ahead in a competitive market, Rockwell Automation offers tailored automation, control...

Automotive Manufacturing Innovation: Smart Solutions for a Connected Future

Rockwell Automation provides automation and control systems tailored for the automotive and tire industries, supporting electric vehicle production, tire production, battery production...