ExxonMobil announces a new polypropylene production unit is coming to Baton Rouge. This means more than 600 construction jobs and 65 permanent jobs are coming because of this project, according to a news release from the oil giant.
“Growth in feedstock supply along with the increase in global demand for chemical products continues to drive our strategic investments and expansion along the Gulf Coast,” said John Verity, president of ExxonMobil Chemical Company. “We’re well positioned to meet the demand for these high-performance products and investing further in Baton Rouge enhances our facility’s competitiveness.”
Exxon is receiving support for this big step, including from Together Baton Rouge. It is the local organization that was against ExxonMobil in Baton Rouge receiving an industrial tax exemption, recently denied by the East Baton Rouge Parish School Board.
The organization released a statement saying in part:
“We applaud ExxonMobil for this exciting local investment decision,” said Dianne Hanley, a leader with Together Baton Rouge and Together Louisiana. “The polyolefins expansion is precisely the kind application of ITEP that we support: it incentivized new construction, promises to create new, permanent full-time jobs, and most importantly, received the approval of the local governing bodies that would be most impacted by the tax exemption.”
State Senator Bodi White, who has been vocal about his support for Exxon’s expansion, reacted to the news. He released a statement saying in part:
“I want to start by thanking ExxonMobil for not giving up on East Baton Rouge Parish and Louisiana… Represenative Foil and I are working on a bill that will contain corrective language to make ITEP, and other incentives more business-friendly and create an environment of stability and predictability in Louisiana to encourage more growth and economic opportunity for our state,” said Sen. White.
The Baton Rouge Area Chamber and Louisiana Mid-Continent Oil and Gas Association applauded this step for ExxonMobil, but both still believe the ITEP process needs to improve.
“The taxes paid by this project will fund community services for decades. Our sharp critique of the local ITEP process remains. There are more projects like this one today that we can win for Baton Rouge. However, the ITEP needs to be stable and predictable, while having accountability to ensure companies deliver on their promises,” stated BRAC.
“While congratulations are in order, Louisiana needs to focus on the process for incentive programs in Louisiana and the push for further refinement of the rules. We need to continue the conversation to find new ways to improve the process. We need to create a stable, pro-business environment in Louisiana where companies will want to continue to invest,” said LMOGA President Tyler Gray.”
Construction will begin this year and is expected to be complete by 2021. This project is part of Exxon’s Growing the Gulf Initiative, which is expected to create more than 45,000 high-paying jobs across the region, according to the company.