Blessed with a unique and commercially advantageous topography, coupled with a thorough, unrivaled infrastructure that promotes cost-effective and energy-efficient intermodal transit, greater New Orleans has enjoyed a welcomed wave of “Foreign Direct Investment” (FDI) over the past 12 months.
Be it new construction or the expansion of their existing U.S. facilities along the Mississippi River, international heavyweights such as Birdon, UBE, Copenhagen Infrastructure Partners and Industrial Fuel Groups, and Spain’s Life For Tyres, have made eight, nine, even ten-figure commitments to south Louisiana since 2023. These are expansive projects that bring with them high-salaried permanent careers and help sustain indirect jobs.
“FDI is critical to the long-term success of our region, it creates well-paying jobs, diversifies the economy, and encourages innovation,” said Harrison Crabtree, director of World Trade Center New Orleans. “People around the world know and love New Orleans and the attraction of world class businesses continues to enhance our brand as a global city.”
Crabtree said these “wins” showcase that the region is not a “one-trick pony.”
“We are able to successfully attract companies for a diverse set of industries across different regions in the world,” Crabtree said.
Despite its modest population for a metropolitan area, greater New Orleans thrives as an industrial expansion destination for international companies for several reasons – both naturally-occurring and manmade.
Nestled near the mouth of the Mississippi River, New Orleans serves as the gateway to the Gulf of Mexico – a key artery for global connectivity – AND the entry point for imports seeking to reach most regions within the United States. Wisely, over the years, civic leaders and economic advocacy groups have fortified New Orleans’ natural geographic benefits by building up a second-to-none intermodal infrastructure for commerce.
Home to the world’s largest Port system – 6 deep-water draft ports, in total – New Orleans has emerged as not only a vital hub for maritime commerce, but a place where any type of product can be sent pretty much anywhere thanks to the 6 Class I railroads that converge with deep-water port access. To aid on-site manufacturing along the Mississippi River, industries benefit from 5,000 miles of pipeline, affording access to a variety of affordable and readily available fuel sources.
Lastly, understanding the multi-layered positive social and economic impact that comes with luring billion-dollar investments to the region, the state of Louisiana continues to expand and refine its extensive catalog of incentives for companies that reach certain job-creation thresholds.
“There’s no one incentive that’s tied to just FDI…but the same business incentives brought forth by the State of Louisiana that appeal to domestic investors also appeal to global investors, as well,” said Paige Carter, LED’s Chief Business Development Officer. “So you look at our ‘Industrial Tax Exemption Program,’ or ‘Quality Jobs Program,’ and the ‘LED FastStart Program,’ which is one of the top workforce training programs in the country…those types of business-friendly job-creating incentives coupled with the unique, beneficial logistics of the area help New Orleans standout in a climate that’s more and more competitive each year when it comes to landing FDI.”
In March 2024, investors from Denmark and officials at the Port of South Louisiana announced that construction would begin this year on a $4.6 billion St. Charles Clean Fuels blue ammonia facility – an ambitious project that aligns with the Port’s mission to diversify its clientele within the Port District and promote environmentally-friendly practice. At St. Charles Clean Fuels, the carbon emitted during the production process for the blue ammonia is captured and buried underground, thus substantially lessening the amount of CO2 released into the atmosphere. Once operational, St. Charles Clean Fuels will be responsible for more than 200 new full-time positions.
One month earlier, Japanese chemical producer UBE announced plans to open its first U.S. facility for a pair of critical ingredients found in EV Lithium Ion Batteries – dimethyl carbonate and ethyl methyl carbonate. The $500 million plant, located in Jefferson Parish, will employ approximately 50 workers and calls for 300 construction specialists at the apex of the building process.
Last year, Life For Tyres from Spain dedicated $46 million to expand its operations to the U.S. with a facility in the River Parishes. The international “upcycling” leader transforms discarded rubber from old car and truck tires into top-of-the-line alloy steel, advanced biofuels and black recovered carbon through environmentally sustainable methods. The 10-acre facility will lead to 46 direct jobs and 151 indirect jobs, according to LED.
“I look at (FDI) as wealth generation: ‘How can we attract new wealth generated for the state of Louisiana originating outside of our borders?’” Carter said. “This is organically taking funding and money from outside and bringing it into the walls, into the state. When we talk about wealth generation and how to bring new positivity and innovation into the area, that influx of external funding is substantially important.”
Beyond its gifts from Mother Nature (namely the Mississippi River) and its advanced infrastructure, greater New Orleans continues to set itself apart from other municipalities seeking FDI thanks to its rapid advancements in workforce development. With government officials, vocational schools, and traditional colleges and universities all aligned to nurture south Louisiana’s workforce ecosystem, resources have been maximized and integrated in a way that’s been productive and catalytic for the state’s future workforce – giving them the tools and skills needed to succeed in a rapidly-evolving energy and manufacturing sector.
For Carter, in order to sustain success, the key is to promote and reinforce their message to potential outside investors.
“Louisiana is a place where you can come and have unmatched levels of commitment in terms of infrastructure and connectivity, a business-friendly environment, coupled with a world-class workforce and workforce solutions,” Carter said. “That is our advantage. And that’s why Louisiana stands apart as an unparalleled investment opportunity for international companies, no matter where they originate.”
