On December 8, Louisiana Governor John Bel Edwards announced that Tokyo-based Mitsubishi Chemical Corporation is studying the feasibility of building a $1 billion methyl methacrylate (MMA) manufacturing plant in Geismar.
The governor said that the proposed project will create 125 new direct jobs with an average annual salary of $100,000, plus benefits.
The Louisiana Department of Economic Development estimates that the project will bring 669 new indirect jobs to Baton Rouge and its surrounding areas, for a total of nearly 800 new jobs.
Geismar is one of the most advanced chemical manufacturing communities in the world. "As we continue to strengthen Louisiana's world-class infrastructure, as proposed by Mitsubishi Chemical. We look forward to working with Mitsubishi Chemical to attract this permanent investment and the quality jobs that follow."
Methyl methacrylate (MMA) is an important part of acrylic polymers. MMA is used in coatings, adhesives, glazes, lighting displays, architectural panels, bathroom fixtures, flat-panel displays, and transparent acrylic barriers against viruses in retail and manufacturing environments. It can also be used to improve the strength, durability, transparency and scratch resistance of other products.
image
Hitoshi Sasaki, chief operating officer of Mitsubishi Chemical’s global methyl methacrylate business, said: “The Geisma project will be the third and largest commercial application of Mitsubishi Chemical’s proprietary Alpha technology, which was first deployed in 2008.”
"This technology and plant design are perfectly matched to American shale gas-based raw materials and strengthen our global leadership in the MMA commercial market. We look forward to working with the people of Louisiana and Ascension."
Since 2000, the Louisiana Economic Development Agency and its partners have attracted more than US$8 billion in foreign direct investment from Japan in economic development projects and provided more than 5,300 new jobs for Louisiana residents.
Clint Cointment, President of the Diocese of Ascension, said: “In the Diocese of Ascension, we are proud of our global business community and the local employees they hire because they are vital to the sustainable development of our economy and provide residents with a higher Quality of life. Mitsubishi Chemical will make a great contribution to the further development of our economic foundation."
Officials from the Louisiana Department of Economic Development stated that they began discussions with Mitsubishi Chemicals about a potential MMA plant in 2016. To ensure the smooth implementation of the project, the State of Louisiana provided Mitsubishi Chemical with competitive incentives, including the integrated workforce solution of the number one state workforce program in the United States (LED FastStart). And a performance-based grant of US$4 million to offset infrastructure costs, which will be paid in two installments in 2024 and 2025 to ensure capital expenditures. In addition, Mitsubishi Chemical is expected to take advantage of the state’s "Quality Work and Industrial Tax Exemption Program."
Kate MacArthur, President and CEO of Ascension Diocese Economic Development Corporation, said: “As the world’s largest MMA producer and technology leader, Mitsubishi Chemical will be a fish in the water in Ascension Diocese. By combining our strategic position with our world-class workforce Together, we look forward to making the final location decision easier."
Mitsubishi Chemical is developing the world's largest and most modern MMA plant with an estimated annual production capacity of 350,000 tons. The company will build on 67 acres of undeveloped land it acquired from synthetic rubber manufacturer Lion Elastomers. According to the final investment decision, Mitsubishi Chemical will start construction activities and conduct preliminary operations in 2025.
