BATON ROUGE (AP) — Momentive Specialty Chemicals Inc. plans to spend $66 million to build a new chemical production facility in St. Charles Parish and upgrade its plant in Ascension Parish.
The expansions will increase Momentive's production of formaldehyde for use by nearby chemical plants in the manufacture of other products.
The New Orleans Advocate reports the plant announcements were made Thursday by Momentive Executive Vice President Dale Plante and Gov. Bobby Jindal.
The projects will retain 55 existing jobs at the Geismar plant, while creating 13 new direct jobs — eight in Luling and five in Geismar — with an average annual salary of $82,300.
The Geismar plant expansion should come online in the fourth quarter of 2015. It will have a direct pipeline delivery system into the adjacent manufacturing sites of BASF Corp. and Huntsman Corp.
"We are delighted to learn of Momentive's plans to increase their employment and investment at their Geismar site," Ascension Parish President Tommy Martinez said.
The Luling plant is expected to begin operations in the first quarter of 2016. It will serve an adjacent Monsanto Co. chemical plant by providing formaldehyde through a direct pipeline into the Monsanto complex.
"By utilizing space at an existing facility, this project will add economic opportunities, tax revenue and long-term viability for the Monsanto site without encroaching on surrounding residents and businesses," said St. Charles Parish President V.J. St. Pierre Jr.
When completed, the plants will have the capacity to produce more than 400,000 metric tons of formaldehyde per year.
Plante, who is also president of Momentive's forest products division, said the additional capacity will help the company meet anticipated growth in the Gulf Coast region for several significant and longtime customers.
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