Albemarle Corp. values its legacy as a groundbreaking specialty chemicals company that gives customers a competitive edge. Louisiana also is no stranger to breaking ground. In addition to ethics and tax reforms that make the state business-friendly, Louisiana offers a wealth of incentives to help companies experience success in the state. With a similar thirst for innovation and performance, Louisiana leaders knew they could provide the right environment for Albemarle’s future. Would Albemarle agree?
The Challenge
In 2008, Albemarle considered new headquarters possibilities. Contenders included Virginia (then home to company headquarters in Richmond), the Carolinas, Texas and Baton Rouge, La. With a majority of Albemarle’s business in the Gulf Coast region, these locations made the most sense to company leadership.
Because of the uniqueness of Albemarle’s business, the company sought an equally unique location and workforce. “Dedicated” and “adaptable” would be key descriptors of both business partners and team members. With a majority of customers outside the U.S., as well as scientists involved in projects across the country, the headquarters would have to serve those parties well.
The Solution
During Albemarle’s search, company leaders sat down with Louisiana Economic Development to discuss the opportunities the state could offer Albemarle.
Louisiana offered Albemarle $4.2 million in relocation expenses, including $3.2 million from a state Rapid Response Fund and $1 million from the East Baton Rouge City-Parish government to support the move. In addition, Louisiana’s ethics reforms and elimination of the sales tax on natural gas were key advantages.
“I think the pro-business mindset of the current administration is significant,” said John Steitz, Albemarle executive vice president and chief operating officer. “In terms of accessibility, that is unique to Louisiana. I think the state is very appreciative of us being here and we’re very appreciative of the culture it’s creating.”
With close proximity to several ports, Albemarle found Louisiana ready to assist the company with serving global clients. State universities provided talent and valuable research partners. And the state’s focus on environmental initiatives attracted Albemarle: As a company focused on making products for a sustainable future, Albemarle recognized Louisiana’s environmental stewardship as a plus.
The Results
Persuaded by Louisiana’s compelling relocation incentives, as well as the collaboration of state and local leaders, Albemarle in late 2008 committed to moving company headquarters to Baton Rouge, where it already employed more than 500 people. The move would create at least 30 new corporate jobs in Baton Rouge that year, with an additional yearly payroll of at least $7 million. An LSU impact analysis predicted that in the first year the relocation would generate $26.9 million in new sales, $10.7 million in new earnings and 161 total new jobs, including indirect jobs.
Since relocating, Albemarle has continued to experience significant growth and success in Louisiana. Less than a year after announcing the relocation, Albemarle completed the $21 million expansion of a Process Development Center in Baton Rouge. The project included a new $15 million catalysts manufacturing unit and a new $6 million laboratory.
In the fourth quarter of 2011, Albemarle invested $1.5 million to open a new Environmental Research and Development facility at its Product Development center in Baton Rouge. The expansion allowed the company to expand its capabilities in multi-pollutant control, while significantly growing its capabilities in environmental research.
Albemarle shows no signs of slowing its research and expansions. In November 2011, the company took advantage of its proximity to local universities and opened a new Research and Development Microbiology lab at the Louisiana Business and Technology Center on the LSU South Campus Research Park. The lab is a partnership between Albemarle and Southern Microbiological Services, a company founded by LSU Professor Dr. William Doerrler.
In addition, Albemarle dramatically renovated corporate office space in Baton Rouge, making an investment of $6.5 million. The headquarters alone employs more than 300 people, housing executive leadership and significant support functions, such as business administration, sales, marketing, engineering, finance, human resources, customer service, supply chain and alliance services.
“Just over the last year in Baton Rouge alone, we have added in the range of 90 professional jobs,” said Steitz. “It's been a really great success story for Albemarle.”
“Albemarle’s continued investment in our state represents their foresight in seeing Louisiana’s business environment as a frontier of opportunity for business success,” said Gov. Bobby Jindal.
The success of Albemarle’s relocation to Louisiana continues a trend of business development and job creation in the state. Recent business development projects won by Louisiana are resulting in significant job growth and billions of dollars in capital investment all across the state. These wins are fueling hundreds of millions of dollars in new sales for Louisiana small businesses and continuing the economic growth of the state. Visit the LED News website area for updates about the new Louisiana.
