Two South Korean manufacturing giants are making a significant move into Louisiana’s industrial landscape, bringing a $59 million investment and dozens of new jobs to West Baton Rouge Parish. This development represents more than just another factory—it’s a testament to the growing internationalization of America’s manufacturing heartland.
The joint venture between Lotte Chemical and Lotte Fine Chemical will establish a manufacturing facility expected to create 45 direct jobs with an average annual salary of $84,700 plus benefits. State economic officials estimate the project will generate an additional 83 indirect jobs, creating substantial economic ripples throughout the Capital Region.
Construction is slated to begin in the first quarter of 2024, with commercial operations expected to launch by mid-2025. The facility will produce phosgene derivatives, essential components used in various pharmaceutical, agricultural, and industrial applications.
“This investment demonstrates Louisiana’s continued appeal to international manufacturers seeking strategic advantages in the American market,” Governor John Bel Edwards said in a statement. “The project strengthens our growing economic ties with South Korea while creating quality jobs for Louisiana workers.”
The announcement comes as part of a broader trend of foreign direct investment in U.S. manufacturing, particularly in the chemical sector. According to data from the U.S. Bureau of Economic Analysis, foreign direct investment in American chemical manufacturing reached nearly $380 billion in 2022, reflecting growing international confidence in U.S. production capabilities.
For context, Lotte Chemical is already established in Louisiana with its $3.6 billion petrochemical complex in Lake Charles, which began operations in 2019. This expansion represents a deepening commitment to the state’s industrial ecosystem.
Louisiana offered the companies a competitive incentive package that includes the comprehensive workforce development program LED FastStart and a $1 million performance-based grant. The companies will also be eligible for the state’s Quality Jobs and Industrial Tax Exemption programs.
“This project aligns perfectly with our economic development strategy of attracting advanced manufacturing that leverages our existing industrial infrastructure,” said Don Pierson, secretary of Louisiana Economic Development. “South Korean companies have been increasingly important partners in our state’s economic growth.”
West Baton Rouge Parish President Riley Berthelot welcomed the announcement, noting that the facility will strengthen the parish’s industrial base while providing high-paying jobs for local residents. “This investment demonstrates that our community can compete globally for sophisticated manufacturing operations,” Berthelot said.
The new facility will be located along the Mississippi River industrial corridor, positioning it strategically within America’s chemical manufacturing hub. This location offers critical advantages including access to raw materials, shipping infrastructure, and proximity to other chemical producers in what industry insiders often call “Chemical Alley.”
Lotte’s expansion reflects broader economic trends reshaping global manufacturing. With ongoing supply chain realignments, many international companies are pursuing “nearshoring” strategies—establishing production closer to end markets to reduce logistical vulnerabilities.
“We’re seeing a fundamental shift in how global manufacturers approach their production footprint,” explained Richard Thompson, an industrial economist at Mercer University. “Companies are prioritizing regional production hubs that offer both security and efficiency. Louisiana’s established chemical industry makes it particularly attractive for this kind of investment.”
The announcement also underscores Louisiana’s competitive position in attracting international chemical manufacturers. The state ranks second nationally in chemical production, with more than 200 chemical facilities employing approximately 29,000 workers, according to the Louisiana Chemical Association.
For West Baton Rouge Parish, with its population of roughly 27,000, the addition of 45 high-paying direct jobs represents a meaningful economic boost. The expected average salary of $84,700 significantly exceeds the parish’s median household income of approximately $60,000.
Lotte Chemical America President and CEO Jung Heeyong emphasized the strategic importance of the investment: “This new facility will enhance our ability to serve North American customers while leveraging Louisiana’s world-class chemical manufacturing infrastructure.”
As construction begins next year, local officials are already preparing for the economic ripple effects. From construction jobs to increased business for local suppliers, the project promises broad economic benefits even before production begins.
The development comes as Louisiana continues efforts to diversify its industrial base beyond traditional oil and gas, focusing on downstream manufacturing that adds value to the state’s natural resources. This approach has helped the state weather fluctuations in energy markets while building more resilient economic foundations.
Looking ahead, state economic development officials suggest this could be just the beginning of expanded South Korean investment in Louisiana. As international companies increasingly seek stable production locations with access to North American markets, Louisiana’s combination of infrastructure, workforce, and business climate positions it competitively on the global stage.
