On Thursday, November 6, Governor Greg Abbott announced that Formosa Plastics will open a new space in Jackson County, which will create $150 million in capital investments.
This billion-dollar company is expanding operations, which will affect the taxpayers.
The project is qualified under the Texas Jobs, Energy, Technology, and Innovation program, also known as JETI. Formosa Plastics will be paying less property taxes to the local public school district.
JETI offers property tax breaks, including a “school district maintenance and operations tax appraised value limitations of 50%, based on qualifying job and capital investment minimums.”
Formosa Plastics will have a new facility at their Point Comfort complex to produce C6, or 1-Hexene, which is a feedstock organic compound. The C6 assists in the production of polyethylene, a common plastic material.
Jack Wu, the Texas Business Development Vice President of Formosa Plastics Corporation, commented in a press release about his appreciation towards Governor Abbott’s Texas Economic Development and Tourism Office, the Texas Comptroller of Public Accounts Office, and the Palacios ISD board for approving the application.
“Property tax is an important factor when determining a site location for expansion projects,” Wu said. “This type of approval helps move projects forward, which will support longterm economic development in the region and benefit the community.”
Formosa Plastics states its annual revenues are more than $5 billion.
And while the industry will provide jobs and economic growth, it’s been known for allegations and lawsuits related to pollution, environmental regulation violations and community health problems. An Environmental Integrity Project analysis, which was published earlier this year, found that 84% of plastics plants evaluated nationwide violated their air pollution control permits over the last three years.
Jill Sklar, Jackson County Judge, said Formosa Plastics has been a valued part of the community. “Their continued investment brings new opportunities for our residents, strengthens our local economy, and reaffirms Jackson County as a great place to live and work.”
Both Texas Senator Joan Huffman, who represents District 17, and Representative AJ Louderback said the investment is a testament to Jackson County’s economic potential and will bring new jobs to the complex.
“Texas leads the nation in chemical production and exports,” said Governor Abbott. “This $150 million investment by Formosa Plastics will grow good-paying jobs for Texans, expand economic opportunity in Jackson County, and further our state’s manufacturing leadership. With Texas’ unmatched business operating advantages and easy access to domestic and global markets, Texas manufacturers offer an efficient, reliable supply chain for critical materials used in the production of everyday products.”
