Mitsubishi Walks Away from $1.3 Billion Chemical Plant Planned for Louisiana

The company behind a $1.3 billion petrochemical plant planned for Ascension Parish has chosen not to follow through with the project, citing a drop in demand for the products it would make.

The decision from Japanese conglomerate Mitsubishi comes after an independent report last summer determined the facility was not economically feasible and would result in the unnecessary release of greenhouse gases.

The new methyl methacrylate (MMA) monomer plant in Geismar would have made materials used in products ranging from automobile headlights to aquariums. Plans called for 125 employees, according to Mitsubishi. When the project was announced in December 2020, Louisiana Economic Development predicted it would create another 669 indirect jobs. 

In a statement to investors Monday, Mitsubishi said it will be able to meet demand for MMA products from its plant in Tennessee and other locations.