Mitsubishi evades commitment to plans for Louisiana MMA plant

In 2020, then-Louisiana Gov. John Bel Edwards enthusiastically endorsed Mitsubishi’s plan to build a huge methyl methacrylate plant (MMA) in Geismar, La. The plan, opposed by 19 organizations in a letter from December 2020 would have added to the heavy concentration of toxic industrial plants in the state’s Cancer Alley.

With regulatory support pledged and additional dollars from the state’s Industrial Tax Exemption program approved in exchange for promised investment and jobs creation, the project clock started ticking. Mitsubishi announced it would make a Final Investment Decision and start construction in 2022; the deadline came and went.

Community residents turned out at a Department of Environmental Quality meeting in February to object to the air pollution created by the new plant, on top of all the air pollution from other industrial facilities in the community. Although another promise had been made to move forward by June 2024, that deadline also came and went.

This might not seem important, but Mitsubishi asserts that it takes pride in working with community leaders. The company has not answered the Dec. 20 letter or addressed the issues raised at the hearing in any meaningful fashion.

Mitsubishi is developing new fossil-free plants in other parts of the world.

In Louisiana, Mitsubishi has backed off a firm date as it touts a fossil fuel plant that could be obsolete by the time they build it.

Since Mitsubishi has announced its plans to build the Louisiana plant, Moody’s and Standard and Poor’s have pointed out that petrochemical plants and oil and gas investments in general are becoming less creditworthy. Markets are moving away from products like methyl methacrylate. The public is moving away from these types of facilities, also.

During Mitsubishi’s first quarter earnings call, one of the company’s stock analysts asked about the status of the Louisiana project. The firm dates provided by Mitsubishi in the past have now given way to its recent answer that “sooner or later,” the company will decide whether to go forward with the project.

Since the Moody’s and Standard and Poor’s warnings were issued, IEEFA has identified seven petrochemical projects, including Mitsubishi, that have announced delays, cancellations and weak financial performance.

Community residents see better potential uses for the property that the company is tying up for no good reason. Taxpayer dollars are being tied up as well, since the government has promised the company tax breaks. And credit rating agencies think investor dollars would be better used elsewhere.  

“Sooner or later” is not the answer one expects from a large international corporation with a major track record. It looks like this project is not viable. If that is the case, the company should let Louisianans know they need to find a better path into the future for their communities.