Shell Chemical LP has announced in a press release its final investment decision to increase the production of Alpha Olefins (AO) at its chemical plant in Geismar, Louisiana.
The increase in production makes the plant the largest producer of AO in the world.
Shell said in the press release that they plan to construct a fourth AO unit that will add a 425,000 tonnes capacity.
AO is used in the production of stronger and lighter polyethylene plastic for packaging and bottles, as well as engine and industrial oils and drilling fluids.
Graham van't Hoff, the executive vice president for Royal Dutch Shell plc's global chemical business, said in the press release that investment demonstrates the company's "ongoing commitment to the growth potential in chemicals."
"With the investment in new, profitable facilities, Shell Chemicals is well placed to respond to increased global customer demand for linear alpha olefins," he said.
The Sacramento Bee said that the development of the new linear AO manufacturing unit at Shell's Ascension Parish complex will include a $717 million capital investment and add 20 new jobs.
The new jobs will have an average annual salary of $104,000 plus benefits.
The Sacramento Bee adds that Shell estimates the project will generate 1,000 construction jobs during peak building activity.
Shell said in the press release that the construction of the new unit is expected to begin in the first quarter of 2016.
The added capacity will bring Shell's total AO production at Geismar site to more than 1.3 million tonnes per annum.
Rhoman Hardy, the general manager at Shell Geismar, told The Sacramento Bee that they expect the unit to begin operations in 2018.
Shell adds in the press release that aside from AO, the Geismar site also produces alcohols, ethoxylates, ethylene oxide and ethylene glycols.
The company said that its Geismar site has a strong track record of reliable and safe performance.
