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August 29, 2019 10:35 AM

Formosa to increase PVC capacity in Louisiana

Frank Esposito
Senior Staff Reporter
Plastics News Staff
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    Formosa Plastics Corp. will invest $332 million to expand production capacity for PVC resin at its plant in Baton Rouge, La.

    In an Aug. 28 news release, Formosa officials said the expansion will create 15 new jobs. Work on the expansion is set to begin early next year. Formosa also will add production equipment in two other units in Baton Rouge, where the firm has operated since 1981.

    Formosa currently employs 230 in Baton Rouge. The expansion is expected to create 500 temporary construction jobs.

    The project will result in a 20 percent increase — equaling almost 300 million pounds — in annual PVC production capacity. New machinery also will be installed for a halogenated acid production unit for internal use in the production of vinyl chloride monomer feedstock, which is used to make PVC.

    Utilities equipment needed for the expanded production will also be installed. The expansion work is set to finish in late 2021 or early 2022.

    The Louisiana Economic Development (LED) office began discussing the expansion with Formosa in March, officials said in the release. The firm considered a Texas location before committing to Louisiana. To secure the project, LED offered Formosa an incentive package that includes a performance-based grant of up to $500,000. Formosa is also expected to use the state's Quality Jobs and Industrial Tax Exemption programs for the expansion.

    "Louisiana is one of only a few areas uniquely qualified with the resources and infrastructure to support our industry, allowing us to diversify our production across our locations, further adding to the reliability of supply for our customers," plant manager Paul Heurtevant said in the release.

    Louisiana Gov. John Bel Edwards added in the release that Formosa "has operated in Louisiana for decades, and we are happy to see its continued success result in this significant capital investment in Baton Rouge."

    Formosa Plastics Corp. Louisiana is a unit of Livingston, N.J.-based Formosa Plastics Corp. USA, which also operates a major plastics and petrochemicals site in Point Comfort, Texas. Formosa Plastics Corp. USA is a unit of plastics and petrochemicals giant Formosa Plastics Corp. of Taiwan.

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