ExxonMobil announced its plans to invest more than $100 million in facility upgrades to produce high-purity isopropyl alcohol, a critical material for semiconductor chip manufacturing in the U.S.
The facility is located at the company’s Baton Rouge Complex in the legacy chemical plant. The project will help retain existing jobs, create approximately 45 construction jobs and is expected to be completed in 2027.
“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,” Louisiana Economic Development Secretary Susan B. Bourgeois said. “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. Thank you to ExxonMobil for its reinvestment in Louisiana, and we look forward to many more years of prosperity and partnership ahead.
Highly complex microchip manufacturing requires isopropyl alcohol with an extremely high purity level – 99.999% pure.
“We’ve been producing isopropyl alcohol at our Baton Rouge facility for more than 80 years,” said Kate Lightfoot, Baton Rouge Complex Chemical Plant Manager. “With this investment, we’re enhancing one of our legacy chemical products to meet growing demand in the tech industry.”
To support the project, the state of Louisiana offered ExxonMobil a competitive incentives package that includes participation in the Retention and Modernization Program, which provides manufacturers up to a 4% refundable tax credit of the amount of qualified expenditures. The company is also expected to utilize the state’s Industrial Tax Exemption Program.
“We’re delighted ExxonMobil is expanding its Baton Rouge operations by enhancing its isopropyl alcohol production,” Lori Melancon, President & CEO of the Baton Rouge Area Chamber, said. “Products made in the Baton Rouge Area go into the things that people around the world use each and every day. It is exciting to know that in the near future, the U.S.-manufactured microchips that will empower our daily lives get their start, in part, right here in Baton Rouge.”
