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Dow Chemical to Invest 1 Billion in Two New Plants in Louisiana

Dow Chemical to Invest $1 Billion in Two New Plants in Louisiana

New synthetic rubber, plastics plants and upgraded ethylene capacity to result in more than 540 new jobs.

In an effort to boost the producion of ethylene, Dow Chemical  (IW 500/25) announced yesterday it will invest $1.06 billion in two new polyolefins plants.

One plant will produce next-generation synthetic rubber and another will produce high-performance polyethylene at its 3,300-acre site in Plaquemine.

The project will retain 1,380 existing workers and create 71 new direct jobs. The Louisiana Economic Development  office estimates an additional 470 new indirect jobs will be created for a total of 541 new jobs. The project will create 1,200 construction jobs as well as 150 contractor jobs to support the new facilities.

“The Dow Louisiana Operations here in Plaquemine were the very first investment by The Dow Chemical Co. our state 57 years ago, and we’re continuing to see the fruits of billions of dollars in chemical manufacturing investments that are continuing to help drive our economy,” said Gov. Bobby Jindal.  

The new plants will increase the supply of chemicals for Dow’s Performance Plastics unit, with applications in adhesives, sporting goods, diaper components, automotive interiors and exteriors, carpeting, home furnishings and personal care products that are part of a $450 billion global market.

This investment is part of Dow’s U.S. Gulf Coast investment strategy. In December, the company restarted an ethane cracker in Hahnville, La., that had been idle since early 2009. That project included more than 2,000 construction jobs and created or retained 80 jobs.

To secure the project, Louisiana will provide Dow with a $2.84 million Modernization Tax Credit, to be claimed over five years, and the comprehensive solutions of LED FastStart workforce development program. In addition, Dow is expected to utilize the state’s Quality Jobs and Industrial Tax Exemption programs

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