Yuhuang Chemical - Yuhuang Chemical

INDUSTRY: Chemical/Petrochemical

Services: Site Selection

Location: St. James Parish, Louisiana

Capital Investment

New Jobs

Shandong Yuhuang Chemical is a China-based petrochemical group that produces and markets a range of chemicals, including propylene, isobutene, butadiene, isoprene, Styrene, Toluene, and others. Yuhuang Chemical Inc., the US subsidiary of Shandong Yuhuang Chemical Co. Ltd., was established in 1986 and is headquartered in Houston Texas.

Global Location Strategies was commissioned by Yuhuang Chemical, a US subsidiary of a Chinese petrochemical group, to identify a location for a large methanol complex, the company’s first facility outside of mainland China.

Considering Yuhuang Chemical’s project requirements, GLS provided preliminary financial screening and qualitative evaluations for three greenfields in Lousiana previously identified by Yuhuang. After a review of the analysis, the company ultimately selected one of the sites.

In 2014, YCI Methanol One LLC, a venture company between Yuhuang Chemical Industries Inc. and Koch Methanol Investments LLC, announced the selection of St. James Parish, Louisiana for its $1.85 billion methanol production facility.

In 2017, Koch Methanol St. James opened. The world-scale facility has the potential to produce about 1.8 million metric tons per year of International Methanol Producers and Consumers Association (IMPCA)-quality methanol.

In 2020, Koch Methanol acquired full interest in joint venture. The facility is now operational and has over 100 permanent employees for operations and additional contract employees for maintenance and non-regular activities. The company contributes yearly to Louisiana’s economy with approximately 300 jobs per year, $25 million in labor income, $46 million in Gross State Product (GSP), and $3 million in state and local taxes.

In 2023, the St. James Parish Council unanimously approved a $150 million expansion for the Koch Methanol complex. The expansion plans to achieve a 25% increase of the facility design production rate from approximately 4,950 to 6,200 metric tons per day of refined methanol, primarily by further optimizing existing plant equipment.

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