Editorial roundup

April 12

The Advocate of Baton Rouge

China’s La. investment

After a presidential campaign that cast a dark view of global trade, Louisiana residents got a fresh reminder this week of how connected our economy is with the rest of the world.

A mainland Chinese company, Wanhua Chemical, plans to develop a $1.12 billion petrochemical manufacturing complex somewhere in Louisiana. The company plans to reveal the facility site later this year. The decision to build is made, although the location in Louisiana is still a company secret.

Even if there is that little bit of intrigue, the announcement of the new complex was made official by Wanhua Chairman and chief executive Zengtai Liao and Gov. John Bel Edwards.

Wanhua will produce methylene diphenyl diisocyanate, or MDI, at the complex. MDI is used in making polyurethanes, a key component in a number of products, including car seats, furniture, adhesives and insulation.

Wanhua will invest $954 million in the facility and its project partners will put up $166 million. The names of the partners were not disclosed Monday.

Louisiana’s economic development agency said the project will create 170 new direct jobs with an average annual salary of

$70,440, plus benefits. Another

945 indirect jobs are projected. Louisiana is providing a performance-based grant of $4.3 million to offset site infrastructure costs, but good-paying jobs are also eligible for other tax benefits, and the complex will benefit from the industrial tax exemption from local property taxes.

Those are real costs, but the benefits remain substantial from an industrial facility likely to be working for decades. Obviously, it will be important for the plant to obtain permits that ensure that environmental standards are maintained.

Several major industrial expansions are underway in Louisiana today, creating a substantial and continuing demand over years for jobs in industrial construction in particular.

Our state has significant advantages in petrochemical manufacturing, including the deepwater transportation provided by the Mississippi River, but also by market forces: The price of natural gas is low, providing an essential feedstock for chemical plants.

Wherever they light, we welcome Wanhua to Louisiana. Our state’s river corridor between Baton Rouge and New Orleans is one of the world’s most important concentrations of petrochemical manufacturing.