1012 Industry Report: Ascension Parish eyed for potential $350M manufacturing facility
Article written by Daniel Jacobs - originally publshed on 1012industryreport.com
A Chinese-owned producer of materials for rechargeable batteries is considering building a $350 million manufacturing plant in Ascension Parish, state and company officials announced last week.
The project would create the largest facility of its kind in the United States and support the growth of domestic lithium-ion battery and electric vehicle supply chains, officials say.
Capchem Technology USA, a subsidiary of Shenzhen Capchem Technology Co., says the project would create 95 direct new jobs with an estimated average annual salary of $71,000.
“If the project comes to fruition, Capchem would bring cutting-edge technology to Ascension Parish, create high-paying jobs for our skilled manufacturing workforce and reinforce our state’s standing as a global hub of energy innovation and investment,” says Gov. John Bel Edwards in a prepared statement.
The facility would have the capacity to produce 200,000 tons of solvent and 100,000 tons of electrolyte annually, using ethylene oxide and carbon dioxide as feedstock.
Capchem board chair Johnson Qin says the project would help the company serve its customers in the U.S. battery manufacturing industry and promote localization of the lithium-ion battery supply chain in North America.
“Capchem USA is a U.S. company and will become a proactive corporate citizen of Louisiana,” he says.
The state has offered Capchem an incentives package that includes the workforce solutions of LED FastStart and a $2 million performance-based grant for infrastructure expenses contingent on meeting investment and employment targets. The company is also expected to participate in the state’s Industrial Tax Exemption and Quality Jobs programs.
The parent company, founded in China in 1996, established its U.S. base in 2018. The company estimates construction on its integrated Louisiana facilities would begin in 2025 and conclude in 2028, pending the completion of commercial agreements and regulatory approvals.