Yuhuang Chemical Inc., a subsidiary of Shandong Yuhuang Chemical Co. Ltd., will make a $1.85 billion capital investment in a world-scale methanol manufacturing complex on the Mississippi River in St. James Parish, LA. Shandong Yuhuang Chemical recorded more than $4 billion in 2013 sales and employs more than 5,600 people worldwide.
The newly formed Yuhuang Chemical subsidiary will make its first major U.S. investment in Louisiana, where it has secured an option to purchase more than 1,100 acres for a three-phase project next to the Plains All-American Pipeline terminal. After the first methanol plant is completed, the company will build a second methanol plant and reach an annual capacity of 3 million metric tons per annum of methanol. A third phase will include a methanol derivatives plant that will produce intermediate chemicals. Most of the project’s methanol will be exported by oceangoing vessels for use in the parent company’s production of downstream chemicals in China, with approximately 20-30% of the methanol to be shipped by barge and rail and sold to North American customers.