ExxonMobil will fund the construction of a new production unit in its Baton Rouge facility in the state of Louisiana to expand the refining capacity by 450,000 tons per year, according to the company's statement Friday.
The new unit will produce polypropylene, a material that improves the safety of consumer products and vehicle fuel efficiency, the American energy giant said.
The new unit is part of ExxonMobil’s previously announced plans to invest $20 billion to build and expand manufacturing facilities in the U.S.' Gulf region, it added.
The facility already has a 502,000 barrel-per-day refinery, in addition to chemical, lubricants and polyethylene plants.
"Growth in feedstock supply along with the increase in global demand for chemical products continues to drive our strategic investments and expansion along the Gulf Coast," John Verity, president of ExxonMobil Chemical company, said in the statement.
Construction of the new unit will begin in 2019 and production is expected to start by 2021, the company said, adding that the project is estimated to create up to 600 jobs during construction and 65 permanent jobs once completed.
By Ovunc Kutlu