Louisiana Governor John Bel Edwards will secure 170 jobs and an investment of $1.1 billion towards a chemical manufacturing plant for his state in exchange for a $4.3 million dollar grant, a series of tax breaks, and an exemption from property taxes for 10 years. The company receiving the corporate welfare is owned in part – 40% – by the Chinese Communist government.
Several associates of Wanhua’s board are members of the Communist Party.
The company – Wanhua Chemical – will receive a 6% cash rebate for up to 80% of the company’s payroll for new jobs over the next decade.
To recap, Louisiana tax dollars will go to the Chinese Communist government in exchange for an investment in a plant and 170 jobs.
The plant produces methylene biphenyl diisocyanate aka MDI which is used to produce foams used in refrigerators, furniture and shoes.
The Chinese also invested in a $1.85 billion methanol complex in Louisiana – Yuhuang Chemical. The St. James plant will be able to produce up to 1.7 million tons of methanol per year, the majority of which will be shipped to China for use in Shandong Yuhuang’s chemical operations. A small portion of production will be sold to customers in North America.
Shandong Yuhuang is taking advantage of several state incentives for the project, including $11.2 million in performance-based grants for infrastructure and riverfront improvements to be paid over the next decade.
Yuhuang Chemical, a subsidiary of China’s Shandong Yuhuang Chemical Company, has started hiring and expects to ramp up to 400 workers by 2021.
Wang Jinshu, the Communist Party Secretary for the northeastern Chinese village of Yuhuang and a delegate to the National People’s Congress, is the man at the helm of a $1.85 billion methanol plant to be built in their town over the next two years with a $9.5 million incentive package from the state.
The details of the project are unclear, residents say, largely because they were not told about the project until local officials, amid discussions with state officials and Chinese diplomats, decided to move forward with the project in July 2014.
“We never had a town hall meeting pretending to get our opinion prior to them doing it,” said Lawrence “Palo” Ambrose, a 74-year-old black Vietnam War veteran who works at a nearby church. “They didn’t make us part of the discussion.”
It should be noted that every time we do business with the Chinese, they receive our industrial secrets.