Officials celebrated the start of construction on Shell Chemical LP’s new $717 million linear alpha olefins manufacturing plant in Geismar on Feb. 16.
According to the company, this project will make Shell Chemical’s Geismar location the largest single-site producer of alpha olefins in the world.
The plant is expected to begin operations in early 2018. Shell Chemical selected Baton Rouge-based Turner Industries as its general construction contractor. At peak building activity, the project is expected to generate 1,500 construction jobs, according to Louisiana Economic Development (LED).
Shell reports that the capacity of the linear alpha olefins unit will be 425 kilotons per year, and the new plant will be the fourth alpha olefins production plant on the 800-acre site, where Shell Chemical has operated since 1967.
LED began discussing a potential project with Shell in November 2013. To secure the project, the state of Louisiana offered a competitive incentive package that includes the comprehensive solutions of LED FastStart, a workforce development program. Shell is also expected to utilize Louisiana’s Enterprise Zone and Industrial Tax Exemption programs, according to LED.