More than a dozen industrial facilities in the Capital Region are owned by foreign companies either directly or through their United States affiliates.
The large petrochemical presence helps insulate the area from the whims of the national economy. When there’s a downturn, durable goods take the hit first, while the chemical sector is a bit more stable.
The petrochemical industry also carries a strong multiplier effect. For every job at a chemical plant, roughly five jobs outside the plant are created. That can include lawyers, suppliers, utility workers, and the woman who runs the register at the convenience store down the street.
“There are a bunch of companies in our state that are supported by the fact that there are these foreign companies here that are making that initial splash in the economy,” economist Loren Scott says.
Adam Knapp, CEO of the Baton Rouge Area Chamber, also says global companies help insulate this area during times of instability in the domestic economy, although he says their importance derives less from foreign ownership and more from the broad markets they serve. U.S.-based companies with large-scale exporting businesses can thrive as well, with similar impact on the local economy.
That said, Knapp believes there could be more opportunities for foreign investment in the local market, given the weak status of the dollar.
The Mississippi River is obviously a big reason these companies are here; they use it to cool their plants and ship their products. The late Gov. John McKeithen pushed hard in the 1960s and 1970s to expand Louisiana’s industrial base, which included personal recruiting trips overseas to encourage foreign investment.
Cheap land and natural resources, and a large skilled work force, were big draws as well, although those advantages aren’t what they used to be. The cluster of petrochemical plants creates synergy, as the companies can easily ship products to each other.
But just because these companies have concrete on the ground and pipes in the air doesn’t mean they’ll be here forever, says Dan Borné, who speaks for the Louisiana Chemical Association. These plants need all the help they can get to stay competitive, including reasonable taxes and a business-friendly legal climate, he argues.
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“Any state that takes for granted the chemical investment will soon find that that investment will wither away,” Borné says.
Air Liquide
Home country: France
2007 revenue: About $18.2 billion
Local facilities: Addis, Baton Rouge, Donaldsonville, Geismar, Plaquemine, Port Allen
Local employees: 208
Primary product[s]: Oxygen, nitrogen, argon, carbon dioxide, helium, hydrogen, acetylene, nitrous oxide, steam and specialty gases
Applications: Heat treating, medical, fabrication, chemical processing, refining, analysis, food, glass production, extrusion and foundrie
Source: Air Liquide
BASF
Home country: Germany
2007 revenue: $85.4 billion
Local facility: Geismar
Local employees: 800 [company], 300 [contractors]
Primary product[s]: Plastics materials and resins, more than 15 chemicals in all
Applications: Furniture, bedding, crop protection, water treatment, etc.
Source: BASF
BP Lubricants
Home country: U.S., subsidiary of Great Britain-based Castrol
2007 revenue: $108 million
Local facility: Port Allen
Local employees: NA
Primary product[s]: Lubricating oils and greases
Applications: Castrol products
Source: Public information
Formosa Plastics Corp.
Home country: U.S.; part of Formosa Plastics Group, Taiwan
2007 revenue: More than $4 billion
Local facility: Baton Rouge
Local employees: 206 [company], 77 [contractors]
Primary product[s]: Suspension PVC resin, vinyl chloride monomer
Applications: Construction, infrastructure, packaging, medical
Source: Formosa Plastics Corp.
Ineos Fluor
Home country: Great Britain
2007 revenue: NA
Local facility: St. Gabriel
Local employees: 120
Primary product[s]: Fluorinated chemicals and intermediates
Applications: Includes refrigerants, air conditioning, pharmaceuticals
Source: Public information
Ineos Oxide
Home country: Great Britain
2007 revenue: NA
Local facility: Plaquemine
Local employees: NA
Primary product[s]: Ethylene- and propane-based chemicals
Applications: Includes lubricants, solvents, polyester
Source: Public information
Nan Ya Plastics
Home country: Taiwan
2007 revenue: NA
Local facility: Batchelor
Local employees: NA
Primary product[s]: NA
Applications: NA
Source: Public information
Rhodia
Home country: France
2007 revenue: About $5 billion
Local facility: Baton Rouge
Local employees: 225
Primary product[s]: Industrial inorganic and specialty chemicals
Applications: Refining, fragrances and flavors [synthetic vanilla]
Source: Rhodia
Shell Chemical
Home country: The Netherlands
2007 revenue: $355.8 billion [includes parent company Royal Dutch Shell]
Local facility: Geismar
Local employees: 540 [company], 360 [contractors]
Primary product[s]: Ethylene glycol, ethoxylates, linear alpha-olefins, detergent alcohols
Applications: Includes laundry detergents, soaps, industrial cleaners, plastics
Source: Shell Chemical
Shintech
Home country: U.S.; subsidiary of Shin-Etsu, Japan
2007 revenue: Shintech, $2 billion; Shin-Etsu, $12.7 billion
Local facility: Addis, Plaquemine
Local employees: 71,213 [includes full-time contractors]
Primary product[s]: Polyvinyl chloride [PVC], caustic soda [Plaquemine site only]
Applications: Construction, medical, credit cards [PVC], water treatment, soaps [caustic soda]
Source: Public information
Syngenta Crop Protection
Home country: Switzerland
2007 revenue: $9.2 billion
Local facility: St. Gabriel
Local employees: About 300 [company], 300 [contractors]
Primary product[s]: Herbicides and insecticides
Applications: Herbicides and insecticides
Source: Syngenta Crop Protection
Taminco
Home country: Belgium
2007 revenue: $930 million
Local facility: St. Gabriel
Local employees: 51
Primary product[s]: Higher amines
Applications: Herbicides and pharmaceuticals
Source: Taminco
Total Petrochemicals USA
Home country: U.S.; subsidiary of Total S.A., France; plant co-owned by Saudi Basic Industries Corporation
2007 revenue: $10.2 billion
Local facility: Carville
Local employees: 246 [company], 149 [contractors] for two Carville plants
Primary product[s]: Styrene Monomer
Applications: Polystyrene
Source: Total Petrochemicals USA
Total Petrochemicals
Home country: U.S.; subsidiary of Total S.A., France
2007 revenue: $10.2 billion
Local facility: Carville
Local employees: 246 [company], 149 [contractors] for two Carville plants
Primary products: Polystyrene
Applications: Toys, food containers, household insulation, etc.
Source: Total Petrochemicals
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