Louisiana

Danos Announces $30M Expansion and HQ Relocation in Louisiana

Larose, Louisiana-based Danos, a strategic services and construction partner for oil and gas companies, announced that it will be investing $10 million to relocate their corporate headquarters to Gray, Louisiana, along with another $20 million for building a new manufacturing facility.

Danos jobs

Danos jobs (photo – danos.com)

The exact site for the new fabrication and manufacturing unit has not been finalized, and Danos is evaluating several port locations in Louisiana.

As part of the expansion and new corporate headquarters investment, Danos will create 426 new jobs over the next five years.

Out of this, 326 will be corporate positions with average annual wages of $75,000, not including benefits. The rest are manufacturing jobs with average annual wages of $65,000,also not including benefits.

Louisiana Economic Development (LED) estimates that the investment and direct new jobs will create 871 indirect jobs, making for a total of 1,300 new jobs.

By securing the headquarters relocation and manufacturing plant projects, Louisiana has also managed to retain 400 existing Danos jobs, and another 200 construction jobs that are expected to be created. The company will retain a fabrication unit located at the existing headquarters in Larose.

Before they settled down on the Terrebonne Parish site for their headquarters, Danos’ site selection process included many potential sites across the Gulf Coast, including locations in Texas, Mississippi and Alabama.

CEO Hank Danos said their family business had deep roots in South Louisiana, and the culture and heritage of the region was important to who they were as a company.

In order to secure the project, LED’s Business Expansion and Retention Group worked with Danos and has offered the company a $1.5 million grant under the Economic Development Award Program.

The company will also be eligible for workforce training support and tax incentives under the Quality Jobs and Industrial Tax Exemption program.

Vic Lafont, president and CEO of the South Louisiana Economic Council, said that this is the third generation of the Danos family’s continued service to the community. He said the company had survived both manmade and natural disasters, and has continued to prosper and grow.

Steve Vassallo, CEO of the Terrebonne Economic Development Authority, said it was another indication of how dramatically the economy has improved. He added that creating new jobs makes it that much easier to recruit the next company they go after.

BP to Fund $340M in Restoration Projects in Louisiana

Louisiana Governor Bobby Jindal announced that BP would be funding approximately $340 million for early restoration projects in Louisiana.

Deepwater oil spill NRDA

Deepwater oil spill NRDA (photo – noaa.gov)

Gov. Jindal said the investments would be a part of the $1 billion NRDA early restoration proposal agreed to by BP to provide funding for projects in the Gulf Coast states affected by the Deepwater Horizon oil spill.

This $340 million is the single largest funding announcement approved by BP for restoration. Until now, BP had approved around 10 projects worth $70 million.

Gov. Jindal said that even though three years have passed since the oil spill, Louisiana still has 200 miles of oiled shoreline that is causing increased erosion, reduced production of oysters and drop in the reproduction rates of shrimp and tuna. He said it was critical for BP to live up to its promise to make things right.

Apart from $320 million for four barrier island components involving restoration of beaches, dunes and back-barrier marshes, BP will also provide $22 million to establish Fish Stock Research and Enhancement Centers in Lake Charles and Point a la Hache to keep fisheries informed and help improve their management.

The billion dollar disbursement agreed to be BP is a “down payment” for the Clean Water Act violation fines it will eventually have to pay when the Natural Resource Damage Assessment (NRDA) process is completed.

However, since this process could stretch on for quite some time, the early restoration agreement is a critical breakthrough that allows the affected states and the federal government to get started with restoration projects well ahead of time.

As per the agreement announced last month, Florida, Alabama, Mississippi, Louisiana, and Texas will each get $100 million for selecting and implementing their own restoration projects.

At the federal level, NOAA and the Department of the Interior will each get $100 million to select and implement their own projects. The remaining $300 million will be allocated by NOAA and DOI for projects submitted by state trustees.

Florida has additionally filed a $5.48 billion lawsuit against BP for tax revenue losses to the state caused by the oil spill. BP has so far ignored settlement offers for this lawsuit, but the Florida legislature has already started planning how to spend it.

SB 1024, an economic development bill approved by the Florida Senate Appropriations Committee, includes an amendment to establish an endowment that would control any BP funds the State of Florida gets and disburse them over a 30-year period for recovery projects in the eight counties most affected by the spill.

Florida Senate President Don Gaetz (R-Niceville) said that funds provided by BP need to be treated as an inheritance to be invested with the intent of benefiting the state’s economy and environment.

Methanex to Relocate $550M Methanol Plant to Louisiana

The world’s largest methane producer Methanex Corp. (NASDAQ: MEOH) announced that it is moving yet another plant from Chile to Geismar, Louisiana. Last year, Methanex had announced the relocation of a separate plant from Chile to the same site in Ascension Parish.

Methanex plant in Chile

Methanex plant in Chile (photo – methanex.com)

This latest $550 million plant added to the vast manufacturing complex Methanex is building on the 225-acre site will require the creation of 35 new jobs, along with another estimated 207 indirect jobs.

The earlier methane plant, also a $550 million project, was announced last year in July and will create 130 direct and 996 indirect jobs. The construction of the combined $1.1 billion manufacturing complex will create more than 2,500 construction jobs.

Negotiations between the Vancouver, Canada-based company and the Ascension Economic Development Corp. have been ongoing since Aug 2011. Methanex considered many sites across the U.S. for the first plant before selecting Geismar.

They were attracted by the ready supply of cheap natural gas and other industrial gases required for their operations, in addition to the convenient transportation choices that include rail, barge, and easy road accessibility from the site to the interstates.

To secure the first project, Louisiana Economic Development (LED) offered Methanex $3.8 million in grants for infrastructure improvements, and another $1.5 million for relocation costs. This time around, Methanex is getting a $1.2 million grant for additional site improvements required for the second plant.

Tommy Martinez, president of Ascension Parish, said it was unprecedented that the same company was announcing two $550 million projects in the Parish within a period of 12 months.

Methanex will complete construction of the first plant by late 2014, and expects to start construction of this second plant in 2014 and finish in two years.

It may be a first for Ascension, but Louisiana has had a very similar experience with South African chemicals giant Sasol, which initially started off in 2011 considering a $4.5 billion ethylene cracker plant in Westlake. A year later, they expanded the project to a $16 billion to $21 billion integrated complex for a GTL and ethane cracker plant, which it expects will be operational by 2017.

The close similarities between the initial site selection and subsequent rapid expansions of the Methanex and Sasol projects shows a pattern where international chemical giants are finding a new home that they like very much in Louisiana.

Adam Knapp, president and CEO of the Baton Rouge Area Chamber which worked with Ascension Economic Development Corp to recruit Methanex to the Capital Region last year, said this second plant’s relocation was a testament to the strength of the region and the recruitment team’s international efforts.

IBM to Set up Technology Center in Baton Rouge, Louisiana

IBM Senior Vice President Colleen Arnold and Louisiana Governor Bobby Jindal were on hand for an announcement that the company will set up a technology center in downtown Baton Rouge as part of a public-private riverfront development.

Gov. Jindal at IBM Baton Rouge announcemen

Gov. Jindal at IBM Baton Rouge announcement (photo – Baton Rouge Area Chamber)

The IBM technology center will create 800 direct new jobs and another 542 indirect jobs, and will provide software development and maintenance services to the company’s clients in the U.S.

IBM will partner with Louisiana State University (LSU) and Louisiana Economic Development (LED) to expand higher education programs and employ college graduates and professionals in the computer science and STEM fields.

The State of Louisiana will shell out $14 million over 10 years to help LSU double its faculty for computer science, and triple the number of graduates it produces in the next five years.

IBM will be working with LSU to create coursework more in tune with their needs in terms of technology, software development and application development.

LED has offered IBM a $29.5 million in performance-based grants over 12 years as an incentive package. Baton Rouge chipped in with $1.5 million for workforce training, recruitment and relocation expenses.

The best part is that construction of the building is being financed with state and local funding. The core of the $55 million riverfront development project will be an office building that will house the IBM Services Center, along with a separate residential building.

The IBM office building will require an investment of $30.5 million, with the state providing $14.8 million. Another $3 million will come from the City of Baton Rouge and the Parish of East Baton Rouge. The remaining $12.7 million is being funded through a federal CDBG grant.

The office and residential complex will create another 600 construction jobs.

LSU College of Engineering Dean Richard Koubek said the partnership between LSU, IBM and LED was a “powerful example of the triangulation between industry, government and academia that elevates the state’s role as a national leader in economic development.”

Gov. Jindal said the project was a game-changer that would have a generational impact on Baton Rouge and Louisiana. Baton Rouge Mayor Kip Holden it would have a ripple effect on private investment, and send a message to the next generation about Baton Rouge being a great place to study and work.

Lockheed Martin Plans LNG Project at NASA Facility in New Orleans

Lockheed Martin (NYSE: LMT) will make a $3 million capital investment at NASA’s Michoud Assembly Facility in New Orleans, Louisiana to manufacture cryogenic tanks for liquefied natural gas (LNG).

NASA Michoud Assembly Facility in New Orleans, La.

NASA Michoud Assembly Facility in New Orleans, La. (photo – nasa.gov)

The project will create 166 new jobs with average annual wages of $42,000 a year, plus benefits.

Louisiana Economic Development (LED) estimates the project will result in another 236 new indirect jobs for a total of more than 400 new direct and indirect jobs.

“We know that the Michoud facility is a vital part of this community and our state, and that’s why we set out to bring new jobs here,” said Governor Bobby Jindal. “Lockheed Martin’s investment in Louisiana is proof of that commitment, and demonstrates the confidence they have in our world-class infrastructure, strong business climate and incomparable workforce.”

The Michoud Assembly Facility is a multi-tenant campus with 43 acres of advanced manufacturing space under one roof.

LED began working with Lockheed Martin on potential commercial manufacturing projects in March 2012. To secure the project, the state agreed to provide the company with a payroll rebate of up to 12 percent for eligible jobs in the advanced manufacturing industry.

Lockheed Martin will receive the services of LED’s FastStart workforce training program, and the company is expected to utilize the state’s Industrial Tax Exemption Program.

The LNG tanks, which will initially be used for ship propulsion, are part of Lockheed Martin’s increased emphasis on converting defense technology to commercial applications.

“Our entry into the LNG tank market is a prime example of how Lockheed Martin is leveraging capabilities and technologies developed for government and defense programs to meet the needs of private sector customers who drive the nation’s economy,” said Gerry Fasano, president of Lockheed Martin Information Systems & Global Solutions-Defense.

Long-term plans call for the company to manufacture tanks to meet the needs of shipping by land, rail and sea, as well as for land-based storage of LNG.

“We are very pleased to add Lockheed Martin’s liquefied natural gas tank production to the portfolio of advanced manufacturing work and research under way here,” said Roy Malone, director of Michoud Assembly Facility. “It is gratifying to see the manufacturing processes and capabilities developed to build large space flight structures being put to use in the energy industry here on Earth.”

Apart from the LNG project, Lockheed Martin also plans to develop ocean thermal energy conversion heat exchangers – a maritime sustainable energy project – as part of a slate of new technologies planned at the NASA manufacturing site.

“Lockheed Martin’s decision to both expand and diversify in Greater New Orleans is a double win,” said Michael Hecht, president and CEO of Greater New Orleans Inc. “First, it is another example of the economic development benefit of the natural gas boom in southern Louisiana; second, it represents another significant step in the repurposing of Michoud as a public-private, multi-use manufacturing facility. Lockheed Martin has had a great past at Michoud, and we look forward to an even greater future.”

Bethesda, Maryland-based Lockheed Martin is a global security and aerospace company that employs about 120,000 people worldwide and generated net sales of $47.2 billion last year.

2013 Corporate Investment and Community Impact Awards

Trade & Industry Development magazine announced the recipients of its 8th Annual CiCi (Corporate Investment & Community Impact) Awards.

CiCi Awards

CiCi Awards (photo – tradeandindustrydev.com)

The 30 corporate recipients of the awards have announced plans for economic development projects that will collectively create and retain more than 35,250 jobs, and result in total corporate investment in excess of $16 billion.

“These major investments provide a clear snapshot of where and in which industries growth is occurring today,” said Scott D. Swoger, the magazine’s publisher and president of its parent company Due North Consulting, Inc. “Each of the investments to be made by Trade & Industry Development’s 8th Annual CiCi Award recipients will be transformational for the communities in which the projects will be located.”

The magazine lists the top 15 largest capital investments for development or expansion, and another 15 projects for the positive impact they will have on a community, regardless of the amount of money invested by the corporation.

The largest project in the corporate investment list is Intel’s $3 billion expansion in Hillsboro, Oregon.  The second and third largest projects were both by CF Industries Inc., which announced $2.1 billion and $1.7 billion expansions of their fertilizer plants in Donaldsonville, Louisiana, and Port Neal, Iowa.

South Carolina had two projects in the top 15 largest corporate investments – a $900 million expansion by BMW at its Spartanburg plant, and another one by Michelin in Anderson County.

“It’s great to see two South Carolina companies recognized out of a list of hundreds for their investments in the last year. I congratulate BMW and Michelin and thank them again for their continued investments in our state,” said South Carolina Secretary of Commerce Bobby Hitt.

As for the top 15 community impact projects listed by Trade & Industry Development magazine, the $6 billion project by Sempra Energy in Louisiana was easily the largest one, creating 740 jobs and retaining another 60 jobs.

Apple’s $304 million expansion in Austin, Texas topped the list in terms of the most number of jobs created (3,600). Amazon’s distribution center projects in Indiana and Kentucky also made the list.

You can see details about each project in both the CiCI Award categories here and here. 

CenturyLink Breaks Ground for 800-Job HQ Expansion in Louisiana

CenturyLink CEO and President Glen F. Post III was accompanied by Louisiana Governor Bobby Jindal, Monroe Mayor Jamie Mayo and others for the groundbreaking ceremony for the Fortune 500 company’s new Technology Center of Excellence at CenturyLink’s corporate headquarters in Monroe, La.

CenturyLink

CenturyLink (photo – centurylink.com)

The 250,000-square-foot expansion to the existing 365,000-square-foot corporate headquarters is a huge project, and will create 800 new jobs.

The building is expected to be awarded LEED Silver certification by the U.S. Green Building Council.

Louisiana Economic Development (LED) estimates the headquarters expansion will result in 1,170 new indirect jobs in the greater Monroe area, and the building project will create an additional 350 construction jobs at peak activity.

“CenturyLink is one of Louisiana’s greatest success stories, and we’re proud that they chose to build on that success by capitalizing on our strong business climate and expanding their headquarters here at home,” said Gov. Jindal.

These jobs, combined with a prior 350-job expansion announced in 2009, will contribute $67.7 million in new annual payroll by 2016, pushing CenturyLink’s statewide annual payroll in Louisiana beyond the $200 million mark. The company will then have 2,600 employees in the Monroe area.

“We are very pleased to celebrate the groundbreaking of the CenturyLink Technology Center of Excellence with our employees, our community and our business partners,” Post said. “We look forward to continuing to grow CenturyLink’s presence in Northeastern Louisiana, and to working with individuals and organizations to make the region an even better place to live and work.”

The State of Louisiana will contribute up to $14.9 million toward the headquarters expansion, at a rate of $1 for every $2 spent by CenturyLink. The company, which hasn’t yet established the final project cost, will begin the building construction in May 2013.

“We are extremely proud of CenturyLink for choosing to make this corporate investment,” said Monroe Mayor Jamie Mayo. “The 800 new jobs at the CenturyLink Technology Center of Excellence will help attract and retain intellectual capital and support jobs to our city. This expansion to CenturyLink’s Monroe campus is a sign of their commitment to the economic vitality of our city, parish and region.”

CenturyLink, Inc. (NYSE:CTL) is the nation’s third-largest telecommunications company and a global leader in cloud infrastructure and hosted IT solutions for business customers. It has more than 47,500 employees around the world.

CenturyLink is the top economic driver company in Northeast Louisiana, and one of the top 10 economic drivers in Louisiana’s private sector statewide. Last year, the company generated $18.4 billion in annual revenue and $947 million in net income.

The 2013 Site Selectors Guild Conference

The 2013 Site Selectors Guild Conference is scheduled to be held in New Orleans, Louisiana from Feb 25-27, 2013.

2013 Site Selectors Guild Conference

2013 Site Selectors Guild Conference (photo – siteselectorsguild.com)

The Site Selectors Guild Conference is the largest gathering of site consultants in the world.

Guild members and guest speakers will be sharing knowledge, case studies, and providing programming tailored for an economic development audience.

“Education and information are at the top of our list when it comes to the type of programming we’ve put together,” said Conference Chair Michelle Comerford, who also is managing director at Austin Consulting. “Many of our economic development colleagues will benefit greatly from what these experts have to say and the observations and opinions they offer.”

Guest speakers for the event include Scott Hodge, President, Tax Foundation; Justin Rose, Principal, Boston Consulting Group; and Neils Phaf, Principal, McKinsey & Company.

“Economic development work is a challenging profession and our program is designed to arm our audience with insight and information which will help them make decisions for their organizations and be more competitive in attracting investment to their communities,” said Jerry Szatan, owner of Szatan Associates and president of the Site Selectors Guild.

The Site Selectors Guild was founded in 2010 as a professional association for site selection consultants. The Guild facilitates direct contact between corporations seeking guidance in facility placement and qualified site selection practitioners.

The first annual Site Selectors Guild Conference was held last year in Orlando, Florida. It was apparently such a rousing success that the conference this year is sold out. Organizations interested in event sponsorships may still be able to get invited and gain access to the huge number of site selection consultants attending the conference.

What: 2013 Site Selectors Guild Conference

When: Feb 25-27, 2013

Where: Ritz Carlton Hotel, New Orleans, Louisiana

G2X Energy Plans $1.3B Plant in Louisiana

G2X Energy Inc. is planning to build a $1.3 billion natural gas-to-gasoline facility at The Port of Lake Charles in Southwest Louisiana.

Port of Lake Charles, Louisiana

Port of Lake Charles, Louisiana (photo – portlc.com)

The Calcasieu Parish project would create 243 new direct jobs, averaging $66,500 per year plus benefits.

Louisiana Economic development (LED) estimates the project would also result in 748 new indirect jobs, for a total of nearly 1,000 new permanent jobs in Southwest Louisiana.

“In order to keep our energy industry strong, we have made a serious commitment to aggressively pursue companies that want to invest in Louisiana and create jobs here for our people,” said Louisiana Gov. Bobby Jindal. “G2X’s investment is proof of that commitment, and this project will mark another milestone in Louisiana’s momentum as a leader in oil and gas initiatives that bring innovation and energy independence to Louisiana and the entire country.”

This week, G2X Energy will finalize an option to lease 200 acres in the Industrial Canal at the Port of Lake Charles, where the company will have the flexibility of shipping gasoline by pipeline or sea.

”We are very excited to be working with the State of Louisiana and The Port of Lake Charles on this project,” said G2X Energy president and CEO Timothy Vail. “The Lake Charles location is ideally suited for our plant facilities, and Governor Jindal’s teams have been very proactive in working with us to ensure a successful project.”

The state began formal discussions concerning the project with G2X Energy Inc. in late 2012. To secure the project, LED offered the company a $5 million performance-based grant for infrastructure improvements at the port, including an access road, utilities and a dock facility. In addition, G2X Energy is expected to utilize the state’s Quality Jobs and Industrial Tax Exemption program incentives.

“Once again the Calcasieu River Ship Channel has proven to be a valuable asset to our region’s growth and success,” said Port of Lake Charles executive director Bill Rase. “We are pleased that G2X has chosen to bring its innovative conversion technology to Southwest Louisiana’s energy corridor, and the Port’s board of commissioners welcomes its newest corporate citizen.”

G2X Energy will use natural gas to produce methanol, then convert methanol to final gasoline for 90 percent of its production. About 10 percent of the output will be liquefied petroleum gas or propane.

Subject to additional feasibility analysis, Houston, Texas-based G2X Energy expects to make a final investment decision by the end of 2013, upon obtaining facility permits.  Construction would begin in 2014 followed by estimated completion of the project in early 2017. Hiring of the plant management team will take place in mid- to late 2014, with most of the hiring for the facility to be completed by the end of 2015.

“We thank G2X Energy Inc. for bringing this venture to Southwest Louisiana,” said George Swift, president and CEO of the Southwest Louisiana Economic Development Alliance. “This project by G2X Energy further makes a statement that Louisiana and the Southwest Region, in particular, are leading in the future energy production for our nation and world markets.”

Elio Motors Purchases Shreveport GM Plant – $100M Investment, 1500 Jobs

Elio Motors Inc. announced that it plans to invest $100 million to set up an automobile plant in the former General Motors factory in Shreveport, Louisiana to assemble enclosed three-wheeled vehicles.

Elio Motors

Photo – Elio Motors

The new Elio Motors plant will create 1,500 new direct jobs by late 2015 paying an average annual salary of $47,700, plus benefits.

Elio Motors is purchasing the GM plant from the Revitalizing Auto Communities Environmental Response Trust, known as the RACER Trust.

RACER is an independent trust created by a U.S. Bankruptcy Court settlement agreement to redevelop former GM locations.

“This is a watershed moment for the people of Northwest Louisiana, for Elio Motors and for the RACER Trust,” said RACER trustee Elliott P. Laws. “Our mission with the RACER Trust includes helping to bring renewed, locally supported economic vitality to former GM sites, and we’re very pleased to have taken this major step toward achieving that goal here in Caddo Parish.”

The Elio Motors manufacturing facility will occupy approximately a million sq ft of the more than three million sq ft available in the former GM site. Stuart Lichter, who has acquired other former GM sites, will buy the 530-acre Shreveport site in conjunction with Elio Motors and lease portions of the site to other tenants.

“The real value in some of these distressed, abandoned properties that we’re seeing corporate America and various governments discard is exactly what makes GM Shreveport so appealing for Paul, and myself,” said Lichter, founder and president of the Los Angeles-based Industrial Realty Group.

To secure the project, Louisiana Economic Development (LED) offered Elio Motors an incentive package that includes the new Competitive Projects Payroll Incentive and access to the LED FastStart state workforce development program.

The Competitive Projects Payroll Incentive will provide annual, performance-based payroll rebates of 13 percent for each qualifying job for the first 10 years of operations. In addition, the company is expected to utilize Louisiana’s Industrial Tax Exemption Program incentive. The Caddo Parish Commission also is negotiating potential incentives to support Elio’s redevelopment of the former GM site.

“We are extremely pleased and excited to be part of the Shreveport community, and we feel that Shreveport will be the perfect home for Elio Motors,” said Elio Motors president and CEO Paul Elio. “We purchased the plant in Shreveport because of the business-friendly economic environment, the quality of the local, experienced workforce, and our unwavering commitment to build Elio vehicles in America, with American workers. We can’t wait to begin our journey in Louisiana.”

Elio Motors expects to begin commercial vehicle production in Louisiana in mid-2014, with significant hiring at the Shreveport facility to begin by the second quarter 2014 and full employment to be reached in late 2015.

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