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Honeywell to invest up to $1.2 billion in Louisiana

Staff writer |
Honeywell Performance Materials announced that Honeywell will invest $208 million in new manufacturing projects at four production sites in Louisiana.

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The projects in Baton Rouge (two sites), Shreveport and Geismar will retain 698 existing jobs and create 42 new direct jobs with an average salary of $68,300, plus benefits. LED estimates 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.

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. Our partnership continues today through an additional round of projects in Ascension, Caddo and East Baton Rouge parishes," said Governor Jindal.

The four initial projects that Honeywell is committing $208 million in new capital investment for will expand product offerings into catalysts, refrigerants and adsorbents while improving the competitiveness of sites in Caddo, East Baton Rouge and Ascension parishes. 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 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.

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.

The company must meet the following targets: a minimum of $400 million in capital investment and 75 new direct jobs in Ascension Parish; $200 million and 75 new direct jobs in Caddo Parish; and $90 million and 25 new direct jobs in East Baton Rouge Parish. In addition, the company is expected to utilize Louisiana's Quality Jobs and Industrial Tax Exemption programs.

Each of the initial Honeywell projects will be under way by the fourth quarter of 2013, and hiring will take place as the upgrades are completed and new products come online.


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