ExxonMobil is set to make a $100 million investment in its Baton Rouge Complex to enhance the production of high-purity isopropyl alcohol, a necessary component in semiconductor manufacturing. As reported by Opportunity Louisiana, the project aims to address the growing demand within the tech industry and is slated for completion by 2027.
The Baton Rouge facility has been in the business of isopropyl alcohol for over eight decades but is now set to quickly adapt to meet the specific requirements of the tech sector. This form of isopropyl needs to be 99.999% pure for semiconductor applications. In a move that’s expected to retain existing jobs and create about 45 new construction jobs, ExxonMobil’s plant upgrade is a significant nod to Louisiana’s growing stature in the tech supply chain.
Louisiana Economic Development Secretary Susan B. Bourgeois commented, “ExxonMobil has a storied history in Louisiana that goes far beyond its refining capabilities and reflects the company’s commitment to growth, innovation and impact,” and further emphasized, “Through the strengthening of the domestic supply chain, this upgrade is yet another example of how Louisiana is at the forefront of the American manufacturing renaissance.”
State incentives seem to have played a crucial role in cementing this deal as well. ExxonMobil will be making use of a competitive incentive package offered by the state of Louisiana, including participation in the Retention and Modernization Program, which gives up to a 4% refundable tax credit on qualified expenses. The industrial juggernaut is also expected to apply to the state’s Industrial Tax Exemption Program, which further underscores the state’s commitment to encourage and facilitate such expansive corporate endeavors.
Lori Melancon, President & CEO of the Baton Rouge Area Chamber, told Opportunity Louisiana, “We’re delighted ExxonMobil is expanding its Baton Rouge operations by enhancing its isopropyl alcohol production.” She added that with the planned upgrades, the region is set to play a crucial role in the production of U.S.-manufactured microchips. Baton Rouge’s contributions thus extend globally, affecting daily tech use everywhere.
ExxonMobil’s Baton Rouge Complex Chemical Plant Manager Kate Lightfoot shared her thoughts on the facility’s enduring legacy. “We’ve been producing isopropyl alcohol at our Baton Rouge facility for more than 80 years,” she said. “With this investment, we’re enhancing one of our legacy chemical products to meet growing demand in the tech industry.” This expansion signifies a convergence of tradition and innovation, leveraging Louisiana’s industrial history to forge a new chapter in high-tech manufacturing.
