Formosa Plastics to expand PVC output in Louisiana

Formosa Plastics plans to spend $332m to expand vinyl production at its site in Baton Rouge, Louisiana, the company said on Wednesday.

The expansion project should increase production of polyvinyl chloride (PVC) by nearly 300m lb/year (136,000 tonnes/year), the company said in a statement released in conjunction with Louisiana's economic development department. Production should start in late 2021 or early 2022.

The project will include the installation of new machinery and equipment to expand the  PVC production unit, leading to a 20% increase in production and sales, Formosa said. The company will also install new machinery and equipment for a halogenated acid plant that Formosa will use internally to make vinyl chloride monomer (VCM).

The project will also install utilities equipment needed for the expansion, Formosa said.

Louisiana Economic Development and Formosa began discussions in March 2019. Plans for the expansion date back even earlier, to at least 2017.

Formosa had considered Texas before choosing Louisiana.

To lure the company to Louisiana, the state offered Formosa a performance grant worth up to $500,000. Formosa can also use the state's other tax and incentive programmes.