Last Tuesday, Louisiana Gov. John Bel Edwards and Shell Chemical LP officials highlighted the beginning of construction for the companys $717 million linear alpha olefins manufacturing plant in Geismar in a groundbreaking ceremony at the companys Ashland Belle-Helene reception center.
The project will make Shell Chemicals Geismar location the largest single-site producer of alpha olefins in the world. The three-year project will culminate with Shell Chemical beginning operation of the new manufacturing plant in early 2018. At peak building activity, the project is expected to generate 1,500 construction jobs.
Were excited to be formally breaking ground for the AO-4 expansion, a project that will reinforce Shell Geismars position as a key contributor to the economic vitality of our region and our state, said Rhoman Hardy, Shell Geismar general manager. Wed like to express our appreciation to the Louisiana Department of Economic Development for their invaluable assistance in making the AO-4 project a reality.
The new manufacturing plant will produce intermediate chemicals that are crucial for a variety of consumer and industrial products, including packaging plastics, synthetic lubricants, drilling fluids and household detergents. 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. The new capacity brings the total AO production at Shells Geismar site to more than 1.3 million tonnes per year.
The Shell Chemical project will retain 650 existing jobs in Geismar; create 20 new direct jobs with an average annual salary of $104,000, plus benefits; and result in an estimated 93 new indirect jobs, for a total of more than 110 new jobs in the Capital Region and surrounding areas.
In addition to Geismar, Shell produces AO at Stanlow in the UK, operated by Essar Oil (UK) Ltd on Shells behalf as part of an integrated oil refinery and petrochemicals site.
