Lion Elastomers

Lion Elastomers, a synthetic rubber manufacturer, is investing $22 million on a new production building at its Geismar facility, Louisiana Economic Development announced Tuesday.

Mitsubishi Chemical Corp., a subsidiary of Japanese automaker Mitsubishi Motors, filed paperwork with the state economic development agency for its proposed $1 billion methyl methacrylate plant in Ascension Parish. 

In December, Mitsubishi Chemical subsidiary MCC Methacrylates Americas Inc. acquired a 67-acre site in Geismar from Lion Elastomers, a synthetic rubber manufacturer. The project is in the early engineering stage of the planning process, according to the company.

A final investment decision for the plant is expected by mid-2022.

Methyl methacrylate is considered a building block for acrylic-based polymers and used in manufacturing of paint, adhesives, glazes, flat-screen computer monitors, acrylic barriers and lighting displays.

Demand for protective clear plastic barriers in retail stores and restaurants has increased as businesses look to adapt during the coronavirus pandemic.

The proposed manufacturing site would be the largest of its kind for that chemical, with the ability to produce up to 350,000 tons each year by 2025. The company looks to purchase reactors, distillation columns, cooling towers, heaters, turbines, compressors, pumps, valves, piping and control equipment. 

Construction is expected to begin in April 2022, supporting 1,500 jobs until December 2025, according to the advance notification on file with the Louisiana Economic Development department. 

The company anticipates hiring 100 workers with an average annual salary of $100,000, plus benefits and 25 new contractor positions. 

In exchange for the capital investment, the state offered a $4 million performance-based grant to offset the cost of infrastructure. The company expects to apply for the Quality Jobs program, a cash rebate to companies up to 6% for no more than 10 years in addition to state sales and use tax rebate on capital expenditures. It could also be approved for property tax abatement up to 80%, if the sheriff, school board and local council vote in favor of the project through the Industrial Tax Exemption Program. It is also expected to use the state's FastStart workforce development program.

Japanese chemical maker eyes Ascension Parish for new $1 billion plant
Lion Copolymer buying Ashland’s elastomers business

Email Kristen Mosbrucker at kmosbrucker@theadvocate.com.