Europe’s largest end-of-life tyre recycling company, Life for Tyres Group, will invest $46m (€42.74m) to build its first US processing facility at the Port of South Louisiana, near New Orleans.
The ten-acre facility, L4T Louisiana LLC, will convert end-of-life tyres into sustainable commodities such as biofuel feedstock, recovered carbon black and scrap. L4T will create 46 direct new jobs in St John the Baptist Parish. Louisiana Economic Development, an economic development agency based in Baton Rouge, expects the project to add another 151 indirect jobs, with the total number of potential new jobs reaching 197.
“This new project is a perfect example of the power of the ports to drive investment and job creation in Louisiana,” the state’s Governor Jeff Landry said. “In addition to the tremendous impact this foreign investment will have on the state and local economies, L4T will support Louisiana-based oil and gas and petroleum chemical companies with high-quality sustainable commodities that help them achieve their carbon management goals.”
The US state of Louisiana experienced a significant drop in foreign direct investment (FDI) projects as a result of Covid-19, with the number of investments announced from abroad in the region falling by 63%, from 32 in 2019 to just 12 in 2020. According to GlobalData’s FDI Database, FDI projects in the manufacturing sector there dropped from 15 in 2019 to only five in 2020 before making a slow rebound, reaching six in 2021 and 2022, and growing to eight in 2023.
As of May 2022, the state was home to 563 international companies, totalling 76,000 jobs, with more than a quarter in the manufacturing sector.
Speaking about the future L4T facility in the Port of South Louisiana, Paul Matthews, the CEO of the Port of South Louisiana, said: “At the Port of South Louisiana, we have made environmental sustainability a pillar in our mission as we seek private investments that not only create jobs for River Region families but are also safe for our community.
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“The first of its kind in the nation, L4T Louisiana will be a world-class, carbon-positive facility where Louisiana’s workers will produce high-quality, totally sustainable commodities. This project will be a welcome addition to Globalplex, making it a greener and more efficient facility with room to grow,” he continued.
Globalplex is a public port terminal owned by the Port of South Louisiana and controlled by Associated Terminals, a company founded in 1990 that operates in the barge industry.