Honeywell’s (NYSE: HON) Performance Materials and Technologies business group will invest more than $200 million at its four production facilities in Louisiana, supported by a comprehensive incentive package spearheaded by Louisiana Economic Development that includes both state and local tax incentives.
The investments are part of a long-term investment and tax incentive framework agreement between the company and state. Honeywell is examining the feasibility of an additional $1 billion in investments in its Louisiana operations over the next 10 years for a series of projects ranging from the production of next-generation products to the maintenance and improvement of current production processes. Under the long-term incentive framework, additional tax incentives would only be triggered as Honeywell moves forward with these further investments.
Performance Materials and Technologies' four facilities in Louisiana include fluorine products production operations in Baton Rouge and Geismar; a catalyst production facility in Shreveport; and an adsorbent production facility in Baton Rouge for the UOP business unit of Performance Materials and Technologies. The planned $200 million investment includes $169 million for engineering and new production capacity related to new products and $39 million in investments to support ongoing operations. Those investments are expected to generate more than 500 new direct and indirect jobs in the state.
If implemented in total, the more than $1 billion in potential additional investments would create an estimated 250 additional new jobs at those facilities and support an estimated 2,000 construction and engineering jobs.
In June 2011, Jindal and Kramvis announced a $33 million investment to modernize the company's Baton Rouge fluorine facility to produce new environmentally-preferable products used in insulation, aerosol and refrigerant applications. The company received state tax incentives for that investment, which helped retain 200 jobs at the facility and create new jobs. The company expects to complete that project this year.