In order to expand product offerings into catalysts, refrigerants and adsorbents while improving the competitiveness of sites in Caddo, East Baton Rouge and Ascension parishes, Honeywell Inc. (IW 1000/35) announced on Tuesday that it will commit $208 million in new capital investment for four projects.
“The investments we are announcing today will support our global operations and allow us to produce many new in-demand products to support refining processes that produce fuels and petrochemicals, as well as advanced materials that are environmentally friendly and energy-efficient,” Honeywell’s CEO Andreas Kramvis said. “The support of the State of Louisiana, as well as local governments, was key in our decision to locate production of key new products at our Louisiana facilities, helping to ensure their future viability.”
Of this total, $169 million will be invested for engineering and new production capacity for new products and $39 million will be invested to support ongoing operations.
The projects in Baton Rouge (two sites), Shreveport and Geismar will retain 698 existing jobs and create 42 new direct jobs. All four projects will result in 148 new indirect jobs, for a total of 190 new jobs in Louisiana. Additionally, Honeywell estimates that construction for the projects will support 469 additional construction jobs.
Specifically, the projects will be at Honeywell Performance Materials and Technologies facilities that include fluorine products production operations in Baton Rouge and Geismar; a catalyst production facility in Shreveport; and an adsorbent production facility in Baton Rouge for the UOP business unit of Performance Materials and Technologies.
Governor Bobby Jindal said the company is examining the feasibility of additional Louisiana projects that would bring the total new capital investment at Louisiana company sites to $1.2 billion over 10 years. At full investment, the four initial projects and later future projects would create a combined 291 new direct jobs and result in an estimated 1,009 new indirect jobs, along with more than 2,400 construction jobs.
“Two years ago, we announced Honeywell’s $33 million investment to manufacture new environmentally preferable products here in Baton Rouge because the company took notice of the work we were doing to improve Louisiana’s business climate,”Jindal said.
The state began working with Honeywell on the latest projects in April 2012. To secure the projects, the state provided a competitive incentives package that includes a performance-based Modernization Tax Credit of up to $15.5 million that will be provided in full if the company makes a total capital investment of at least $690 million and creates at least 175 new direct jobs. addition, the company is expected to utilize Louisiana’s Quality Jobs and Industrial Tax Exemption programs.