Yuhuang Chemical, Inc. closed on an $800 million funding agreement for its methanol project in St. James Parish, La. financed by the Bank of China and other Chinese banks. Now, construction has begun on the planned world-class methane-to-methanol facility expected to produce 1.8 million metric tons of commercial-grade methanol annually.
YCI’s funding agreement represents the largest Chinese-invested project in the Gulf Coast region and the first U.S. construction project financed entirely by Chinese banks. In addition, it is a landmark milestone for the company’s first United States project. The project’s three planned phases will exceed $1.85 billion in investment and will create more than 100 permanent jobs and 1,000 construction jobs in St. James Parish.
“We are thrilled to take an important step forward with our project,” Dr. Charlie Yao, President of YCI said, “We are grateful for the support we have received and look forward to growing with St. James Parish.”
YCI began clearing the greenfield site in preparation for construction in January 2017. The company purchased the 1,300-acre tract, including the adjacent St. James High School campus, for $10.1 million.
The facility is expected to be completed in about three years and will distribute product by truck, rail, barge and ocean vessels by the fourth quarter of 2019. The site is located in an advantageous area with beneficial infrastructure and access to the Mississippi River and major rail lines and highways. YCI expects about 60 percent of the methanol produced by the plant will be sold in North America, while the remaining 40 percent will be exported to Europe and Asia.
About Yuhuang Chemical, Inc.
YCI is an American subsidiary of the Chinese company Shangdong Yuhuang Chemical Co. Ltd. YCI operates a corporate office in Houston, Texas. and plans to construct its first major chemical facility in St. James Parish, Louisiana. YCI’s St. James facility will be a world-class methane-to-methanol plant, expected to produce 1.8 million metric tons of methanol annually and permanently employ 100 people.
About Bank of China (New York Branch)
BOC is China’s most internationalized and diversified bank and covers 51 countries and regions. In 2016, Bank of China was designated as one of the “Global Systemically Important Financial Institutions”, the only financial institution from emerging economies that has been on the list for six consecutive years. As of June 2016, Bank of China USA has total assets of over $50 billion, ranking 18th among 190 foreign-funded banks and the 39th among 5238 financial institutions in the US banking industry. BOC USA specializes in corporate lending, trade services, treasury business and US dollar clearing by creating solutions for Fortune 500 companies, US homegrown enterprises and financial institutions.