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Process Industries

Home to more than 300 process manufacturing facilities, over 150 petrochemical plants and 15 refineries that fuel contemporary life, Louisiana offers considerable strategic advantages for companies in process industries.

Chemicals are the number one producer of direct jobs among manufacturing industries in Louisiana.

Louisiana has more than 24,000 miles of natural gas pipeline, carrying natural gas to all parts of the country.

Louisiana’s 15 oil refineries account for about one-sixth of U.S. refining capacity, able to process roughly 2.9 million barrels of crude oil per day.

Chemicals are the number one producer of direct jobs among manufacturing industries in Louisiana.

Louisiana has more than 24,000 miles of natural gas pipeline, carrying natural gas to all parts of the country.

Louisiana’s 15 oil refineries account for about one-sixth of U.S. refining capacity, able to process roughly 2.9 million barrels of crude oil per day.

Unlocking Opportunities—Louisiana’s Thriving Industrial Landscape

From legacy sectors like chemicals and refining to innovative technologies leveraging low cost feedstock, the state’s abundant talent, infrastructure and natural resources provide unparalleled opportunities. Globally recognized companies such as Dow, ExxonMobil, Honeywell, BASF and Methanex have established or expanded operations in Louisiana, benefiting from the state’s unique advantages.

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Pro-Business Climate for Process Industries

At the core of Louisiana’s competitive advantages is the strength of its business climate. In recent years, the state has enacted reforms to create an atmosphere that Forbes magazine called “America’s new frontier for business opportunity.” 

Louisiana’s low-tax environment offers business operations significant cost savings. According to a 50-state analysis by the Tax Foundation and KPMG:  Location Matters: The State Tax Costs of Doing Business, Louisiana’s tax burden ranks among the top 10 lowest in the nation for new facilities, relocations, and facility expansions for a variety of firm types, including:

  • Labor-intensive manufacturing
  • Capital-intensive manufacturing
  • Research and development facilities
  • Corporate headquarters

Low Industrial Electricity Rates

A location in Louisiana can reduce company costs—2018 rates averaged approximately 19% below the national average.

Highly Competitive Natural Gas Rates

Louisiana’s industrial natural gas rates are also highly competitive, with the state’s 2018 rates approximately 18% below the national average.

Industrial Talent in Full Supply

Louisiana, a right-to-work state with a rich history in process industries, boasts the highest concentration of process industries workers in the nation, supported by private sector projects and additional investments in education and training. The state is strategically investing in higher education to meet the workforce demands of the thriving process industries sector, which offers stable jobs with above-average wages. Research centers and universities across Louisiana are hubs of innovation, producing skilled talent for the process industries while consistently graduating new chemical engineers each semester. Institutions like LSU, Louisiana Tech, Southern University, Tulane University and UL Lafayette have specialized programs and research strengths tailored to this sector’s needs.

To address industry demands, the Louisiana Community and Technical College System (LCTCS) has standardized a process technology (PTEC) curriculum, producing graduates prepared for entry-level roles in the industry. Louisiana’s commitment extends to funding a $20 million manufacturing training facility at SOWELA Technical Community College, which supports specific companies like Sasol while benefiting the broader community.

Business Incentives Designed to Manufacture Success

Louisiana’s highly competitive incentives offer both new and existing process industry operations significant advantages. Louisiana’s wide selection of programs can be combined to create robust, flexible, customized incentives packages for companies.

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A Strategic Location for Streamlined Growth

Louisiana’s location is one of its most valuable assets. Louisiana’s 18 refineries account for 18% of the total U.S. refining capacity. The state also has rich deposits of natural gas, natural salt domes used in the production of PVC plastics chemicals, and plentiful bio-derived commodities from timber and sugar to rice and corn. The state’s superior transportation infrastructure and proximity to abundant natural resources, coupled with a large selection of identified and certified sites make doing business in Louisiana an optimal choice for fuel and chemical processing industry operations.

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