'Major construction' of $9.4B Formosa plastics plant in St. James delayed until virus vax
According to The Advocate, a Formosa Plastics affiliate planning a $9.4 billion petrochemical complex in St. James Parish will defer "major construction" of the facility until the coronavirus has subsided or "an effective vaccine is widely available," a company spokeswoman said.
The global pandemic's widespread impacts, "including the challenge it creates in evaluating construction costs and the restrictions it has placed on international travel, are being felt across all industries and businesses," Janile Parks, spokeswoman for FG LA LLC, said in a statement.
Despite the setback for FG LA, site work is expected to continue through the second half of 2020 on the company's nearly 2,400-acre property in northwestern St. James, just down the Mississippi River from the Sunshine Bridge.
The complex, which would be built in two phases along the Mississippi, has been seen as a big economic development win for the state, bringing 1,200 permanent jobs, thousands more temporary construction jobs and millions of dollars in sales and property tax revenue for local and state governments.
Gov. John Bel Edwards and parish government officials in St. James hailed the plant's arrival at the time it was announced in April 2018.
FG LA is a member of Formosa Plastics Group.
Several coronavirus vaccines are in clinical trials that can take months to complete to determine their effectiveness and any harmful side effects.
Dr. Robert Redfield, director of the U.S. Centers for Disease Control and Prevention, told Congress late last month that he expected it would take until March or April to get 700 million vaccine doses but until midsummer to vaccinate enough people around the country to return to normal.
Parks, in her statement, did not pin down how much the virus would have to subside, absent a vaccine, before the company would resume work.
Virus positivity rates have been dropping in St. James Parish and across much of the Baton Rouge region as mask mandates and social distancing measures have helped slow the virus's spread. But many health experts say they fear a new wave of cases in the fall and winter as people head back indoors and virus fatigue lingers.
The FG LA announcement represents another of the virus's uneven blows to the economy, which has simultaneously boosted demand for things like personal protective equipment — a boon to petrochemical manufacturers — but also devastated other sectors, like tourism, travel, dining and entertainment.
Once finished, the facility would generate the building-block chemicals — ethylene glycol, polyethylene and polypropylene — used in a variety of plastic products, from playground equipment to protective masks.
But the plant has faced stiff opposition from residents who would live near the complex and an array of local and national environmental groups concerned about the plant's future air emissions and rainfall runoff discharges.
Known as the Sunshine Project, the proposal has also crossed into the persistent environmental justice questions that hover around major new industrial complexes in the river corridor between Baton Rouge and New Orleans.
Parish zoning changes adopted in the mid-2010s had helped steer FG and other new plants into small and predominantly poor Black communities surrounded by large tracts of old farming land in western St. James.
Federal and state permitting agencies have said, however, the project has met the mark in their environmental justice analyses.
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