In an interview article from Xinhua News with Don Pierson, secretary of Louisiana Economic Development (LED), Pierson points out that collaboration with China on industrial projects including YCI Methanol One’s plant being constructed currently, is on the rise.>
“Louisiana enjoys a positive trade balance with China,” said Don Pierson, secretary of Louisiana Economic Development (LED), detailing the significance of Chinese businesses to his state in a recent interview with Xinhua. The Bayou State, Louisiana, imports 1.3 billion U.S. dollars a year in goods while exporting 7.9 billion dollars in goods to China, mainly including chemicals, fuels and agricultural products, he said.
Pierson further goes on to say:
Pierson spoke highly of the Chinese companies that are represented in his state as they do not only benefit the regional economy by creating jobs and contributing to local communities, but are also responsible participants regarding safety and security around their facilities. “They’re doing a great job and we hope to introduce more Chinese companies to Louisiana,” he said, adding that the state’s strategic location for logistics, rich natural resources as well as low cost of feedstock and electricity can help create a favorable environment for foreign businesses. Shandong Yuhuang Chemical, one of the Chinese companies investing in Lousiana, is constructing a 1.85-billion-dollar methanol production facility in St. James Parish, Louisiana. Also in the same parish, Wanhua Chemical Group from east China’s Shandong Province plans to invest 1.25 billion dollars to develop a methylene diphenyl diisocyanate complex. The project is set to start construction in 2019 and is expected to go into operation in 2021, according to the latest statement by the company. In January, Shandong Yuhuang and LED were presented with the Outstanding FDI Partnership Award by the New York-based Chinese General Chamber of Commerce, the largest and most influential non-profit organization representing Chinese enterprises in the United States, with its members exceeding 1,500.Shandong Yuhuang Chemical is the parent company of YCI Methanol One. Pierson concludes by saying:
… he was optimistic about a potential trade deal between the two countries as it’s not only desirable from the Chinese side, but also “the desire of the U.S. participants to grow the economy of the U.S., and China is such an important part of that.”(Full article located here)
State, company receive Outstanding FDI Partnership Award at China General Chamber of Commerce gala
The State of Louisiana and Shandong Yuhuang Chemical Group jointly received an Outstanding FDI Partnership Award on Monday night, with the annual Foreign Direct Investment honor presented by the China General Chamber of Commerce at its 2019 Annual Gala in New York. Louisiana Economic Development Secretary Don Pierson and company executive Charlie Yao accepted the award.
Yao serves as CEO of Yuhuang Chemical Industries Inc., a subsidiary of China-based Shandong Yuhuang Chemical Group Co. Ltd. After selecting Louisiana for a major methanol production complex, Yuhuang Chemical began building a world-scale methanol facility two years ago as part of a $1.85 billion project that ultimately will include three phases. In addition to creating 200 direct jobs with an average annual salary of $85,000, plus benefits, the Yuhuang Chemical project will result in an estimated 1,250 new indirect jobs and will generate 2,100 construction jobs at peak building activity. YCI Methanol One, being completed with joint venture partner Koch Methanol Investments LLC, is the first phase of the project and will include 100 permanent direct jobs after creating 1,500 construction jobs.
Read more about the announcement.
NEW ORLEANS, the United States, Sept. 3 (Xinhua) — Deep into St. James Parish, southern U.S. state of Louisiana, hundreds of construction workers are busy installing chemical equipment.
Among the vast expanse of sugarcane fields, this site is unique both in its appearance and identity.
Yuhuang Chemical Industries Inc. (YCI), a subsidiary of China’s Shandong Yuhuang Chemical, is constructing a 1.85-billion-dollar methanol production facility here along the Mississippi River.
It is by far the largest Chinese investment in Louisiana’s chemical manufacturing industry.
The YCI began to turn dirt on its 1,300-acre site in January 2017, clearing the way for the first of three construction phases of the methanol plant. The project has entered key phase in construction these days.
“We will gradually place in the majority of the large equipment on foundation, stepping toward assembly stage，” Charlie Yao, CEO of YCI Methanol One, was animated when talking about the recent progress of his venture.
The plant has been hailed by many as a sign of strengthening business ties between China and Louisiana.
“Yuhuang’s methanol project proceeded amid difficulties and challenges. It indicates that China and the United States are highly complementary in economic structure and trade,” said Xu Chen, chairman of the China General Chamber of Commerce-USA (CGCC), which represents more than 1,500 Chinese and U.S. companies. “The project also helps facilitate U.S.-China collaboration.”
The plant is expected to generate approximately 2,000 construction jobs at peak and at least 100 direct permanent jobs during operation.
Ron Gros, a Louisiana local, joined Yuhuang’s methanol project early 2017. With rich working experience in U.S. chemical industry, Gros regarded his debut in the fledging Chinese company as “a good opportunity for his career.”
“It’s been a good working experience to come from the start to watch a chemical plant being built from the ground up,” Gros is also confident about his future advancement.
Yuhuang’s location on the riverfront was “strategic” and “mutually beneficial,” according to Yao, as the facility benefits from the availability of natural gas feedstock and associated infrastructure. Meanwhile, its anchoring brings job opportunities and tax revenues to local communities and helps boost the port industry.
The plant is expected to start commercial production in mid-2020, with a productive capacity of approximately 1.7 million metric tons of methanol per year.
Methanol is used in the manufacturing of countless everyday products, including plywood, carpet, fuels and plastics.
The majority of the methanol produced at the site will be transported by barge and rail to north America, while the rest will be exported to China and Europe by oceangoing vessels, according to the company.
Many foreign companies including those from China are looking to long-term investment in Louisiana and that bodes well for the future of people living in the river parishes, said Paul Aucoin, executive director of the Port of South Louisiana.
Foreign direct investment has become an essential part of economic growth in Louisiana, and China is among the fastest-growing sources of foreign investment in the state, according to local economic development authority.
by John S. Marshall
HOUSTON, Aug. 30 (Xinhua) — As the winds of U.S.-China trade tension
During an economic conference in Houston hosted by the China General Chamber of Commerce (CGCC) on Wednesday, which represents more than 1,500 Chinese and U.S. companies, the chamber’s chairman Xu Chen said in his opening remarks that “China and the U.S. are each other’s most important trading partners.”
Xu, who also serves as the president and chief executive officer of Bank of China USA, said that the escalating trade friction between the two economic giants is already reverberating throughout the economies of both countries and worldwide.
“As you are all well aware, the recent tariff dispute has barely begun, but already has caused significant negative effects across sectors in both economies and world markets,” Xu said at the conference called “Chinese Investment in the U.S. — The Path Forward.”
“Cross-border investments have suffered and the increased costs for U.S. manufacturers will eventually be passed down to consumers,” he said. “Nearly every industry leader and commercial organization has lobbied the U.S. government to revise its strategy on tariffs and seek a greater compromise with the Chinese government.”
The CGCC reported in its 2018 annual survey that Chinese investments have created more than 200,000 U.S. jobs, and CGCC members invested more than 120 billion U.S. dollars in the U.S. economy.
Xu also said that over the last decade, U.S. exports to China have far outpaced exports to the rest of the world, with U.S. goods being shipped to China growing by 86 percent, while the growth rate of goods for other countries across the globe only stands at 21 percent.
“During the recent U.S. Trade Representative hearings on the matter, nearly 360 representatives from American companies voiced their opposition to the current trade war, which suggests that the tariff strategy is both incoherent and causing serious disruption to the global supply chains,” Xu said.
In a separate report by the U.S. Chamber of Commerce (USCC), a non-governmental trade group that lobbies on behalf of U.S. businesses, the USCC also expressed its concerns about the tariffs.
The group said in an Aug. 24 posting on its website that the decision by the Trump administration to impose a 25-percent tariff on Chinese imports prompted China to retaliate by levying its own tariffs on U.S.-made goods.
“It will hit American consumers and businesses — including manufacturers, farmers, and technology companies — with higher costs on commonly used products and materials, and as a result, it stands to slow the United States’ recent economic resurgence,” the USCC warned.
Corporate executives also voiced their Concerns about economic damage from escalating trade tension in the conference.
“We have been concerned over the climate of the current trade dispute with China,” said Bob Harvey, president and CEO of the Greater Houston Partnership.
“It has the potential of very negatively impacting the Houston economy and even impacting our long-term future,” Harvey said.
Charlie Yao, president and CEO of YCI Methanol One, a 5-billion-dollar Chinese petrochemical company in Houston, said the “vast majority” of his company’s employees are based in the United States.
During the conference, Fort Bend County Judge Bob Hebert, who holds office in a county that adjoins Houston’s Harris County, said he and other Fort Bend officials have been working for years trying to attract Chinese companies to his county.
“We have over the years developed a position that says, ‘Fort Bend is open for business.'” Herbert said.
(MENAFN) Yuhuang’s methanol project, the largest green field investment in methanol by a Chinese company in southern US state of Louisiana, has made advancement in its construction.
According to Xinhua, CEO of YCI Methanol One said: “The installation of our first major equipment on foundation this week signified our project has entered above-ground construction phase, a new breakthrough in building our facility here.”
YCI, a fully owned subsidiary of Shandong Yuhuang Chemical Company, is constructing a 1.85-billion-dollar methanol production facility in St. James Parish, Louisiana.
NEW ORLEANS, the United States, Aug. 31 (Xinhua) — Yuhuang’s methanol project, the largest green field investment in methanol by a Chinese company in southern U.S. state of Louisiana, has made breakthrough in its construction, according to Chinese Yuhuang Chemical Industries Inc. (YCI) on Friday.
“The installation of our first major equipment on foundation this week signified our project has entered above-ground construction phase, a new breakthrough in building our facility here,” Charlie Yao, CEO of YCI Methanol One, told Xinhua.
“We will gradually place in the majority of the large equipment on foundation, stepping into the construction assembly stage,” Yao added.
YCI, a wholly owned subsidiary of Shandong Yuhuang Chemical Company, is constructing a 1.85-billion-dollar methanol production facility in St. James Parish, Louisiana.
The methanol production facility began in January 2017, while commercial production of methanol is expected to begin in mid-2020.
It is estimated to provide about 2,000 jobs at the peak of its construction phase, and during the operation phase, the plant is expected to add at least 100 permanent jobs, said Yao.
Koch Methanol, an affiliate of Koch Industries, has agreed to buy into the new facility, according to a joint agreement by Koch Methanol and YCI last week.
As part of its investment, affiliates of Koch Methanol will receive the exclusive methanol offtake rights from the new facility, as well as construct, own and operate the methanol terminal assets for the outbound flow of methanol.
“The progress Yuhuang’s methanol project has made amid challenges these days indicates that China and the United States are highly complementary in economic structure and trade,” said Xu Chen, chairman of the China General Chamber of Commerce-USA (CGCC), which represents more than 1,500 Chinese and U.S. companies.
Yuhuang’s methanol production facility will be capable of producing approximately 1.7 million metric tons of methanol per year.
Methanol is used in the manufacturing of countless everyday products, including plywood, carpet, fuels and plastics.
As part of its investment, affiliates of Koch Methanol will receive the exclusive methanol offtake rights from the new facility, as well as construct, own, and operate the methanol terminal assets for the outbound flow of methanol via marine, rail, and truck logistics. YCI Methanol’s facility will be capable of producing approximately1.7 million metric tons of methanol per year.
“The decision by Koch Methanol to invest in YCI Methanol sends a clear signal to the industry about the strength of this facility,” said Dr. Charlie Yao CEO of YCI. “The new facility is located in a region with convenient access to natural gas, a highly skilled workforce, and world class transportation infrastructure, allowing us to be very competitive in our production and distribution. If viable, there is also sufficient land to add a second and third plant.”
“YCI has developed a strong execution plan for this project and we’ve been impressed with the knowledge and dedication of the team driving it forward,” said Jim Sorlie, senior vice president with Koch Methanol. “Our relationship with YCI will allow Koch Methanol to continue providing our customers with a consistent and low-cost supply of IMPCA quality methanol, both in the U.S. and in foreign markets, for years to come. Koch Methanol seeks to build long-term, mutually beneficial relationships and this investment is a good example of the opportunities we look for and we’re very excited to continue to build and grow this relationship.”
Supported by the syndication loan arranged and led by Bank of China, construction on the new facility began in January 2017, and commercial production of methanol is expected to begin in mid-2020.
“Bank of China is proud to facilitate the bilateral investment and trade cooperation between U.S. and China”, said Mr. Raymond Qiao, executive vice president of Bank of China, New York Branch. “This plant will create 100 permanent jobs while construction of the facilities will result in 1,000 construction jobs.”
YCI is building a methanol complex on more than 1200 acres the Company purchased along River Road, between the Mississippi River and La. 3127, in 2015 and on the former site of the old St. James High School in St. James Parish. Construction of the $1.85 billion complex began in January 2017. Yuhuang Chemical first announced the St. James project in St. James Parish, La. in 2014.
About Koch Methanol, LLC
Koch Methanol, LLC and its affiliates are committed to supplying methanol to a global customer base in a competitive and timely manner. Methanol is used in the manufacturing of countless everyday products, including plywood, carpet, fuels and plastics. Koch Methanol, LLC is a subsidiary of Koch Ag & Energy Solutions, LLC with offices in China, Houston, and Wichita, KS. www.kochmethanol.com