HOUSTON, Aug. 23, 2019 /PRNewswire/ -- Koch Methanol Investments, LLC (Koch Methanol) and Yuhuang Chemical Industries Inc. (YCI), a wholly owned subsidiary of Shandong Yuhuang Chemical Company, have recapitalized YCI Methanol One, LLC (the "Joint Venture"). As a result of this transaction, Koch Methanol is the indirect, majority owner and managing member of the Joint Venture. The Joint Venture is currently constructing a $1.85 billion methanol production facility in St. James Parish, LA.
"Koch Methanol values the Joint Venture's leadership team and the hard work being done by its employees, and believes in the significant opportunities being created," said Jim Sorlie, Vice President of Koch Methanol Investments. "Consequently, Koch Methanol has decided to acquire a larger equity stake in the Joint Venture."
As part of its original investment, affiliates of Koch Methanol received the exclusive methanol offtake rights from the new facility – expected to be as high as 1.7 million metric tons per year – as well as the rights to construct, own, and operate the methanol terminal assets to facilitate the outbound flow of methanol via marine, rail, and truck logistics.
In the near term, the Joint Venture is on track for an on-budget Phase I project completion in the 3rd Quarter of 2020. Additionally, the Joint Venture is evaluating an expansion that would more than double the production of methanol at the site.
"This is an exciting new step in the project, and Koch Methanol's increased investment in the Joint Venture shows its confidence in the hard work being done by YCI leadership and Joint Venture staff," said Charlie Yao, CEO of YCI. "We look forward to continuing our work with Koch Methanol, vendors, and the local community on this important and exciting project."
About YCI YCI is building a methanol complex on more than 1,200 acres the Company purchased along River Road, between the Mississippi River and La. 3127, in 2015 and on the former site of the old St. James High School in St. James Parish. Construction of the $1.85 billion complex began in January 2017. Yuhuang Chemical first announced the St. James project in St. James Parish, La. in 2014. http://yci-us.com/
About Koch Methanol, LLC Koch Methanol, LLC and its affiliates are committed to supplying methanol to a global customer base in a competitive and timely manner. Methanol is used in the manufacturing of countless everyday products, including plywood, carpet, fuels and plastics. Koch Methanol, LLC is a subsidiary of Koch Ag & Energy Solutions, LLC with offices in China, Houston, and Wichita, KS.www.kochmethanol.com