Axiall chooses Louisiana for $3-billion cracker and derivatives project
23:50 PM | December 19, 2013 | Clay Boswell
has chosen Louisiana as the location of a possible world-scale ethylene plant and associated derivatives plant, the company announced on 19 December. Axiall expects the capital investment to total $3 billion, with Axiall putting up $1 billion, and a “soon-to-be-named” partner contributing $2 billion.
“As part of Axiall’s long-term growth strategy, we believe it is important we have further integration with cost-based economics on 50% of our current annual ethylene requirements,” says president and CEO Paul Carrico. “While we are still considering a number of options and potential partners for the project, and we have not yet received final investment approval from our board of directors, we have narrowed our siting choices to Louisiana.”
Carrico says Axiall will begin the permitting process and certain front-end engineering design activities while it selects a final site for the cracker project. The company says that the plant could begin operation in 2018.
A major vinyls and chlor-alkali producer, Axiall already has three major manufacturing facilities in Louisiana, two in the Lake Charles area and another in Plaquemine.