Chemical Plant Site Selection
In March 2017 David Stevens was taking questions in an open meeting with a local school board to discuss tax abatements for a new chemical plant. Stevens was the project manager for a proposed new chemical plant. The chemical plant was a joint venture (JV) between U.S. based Allied Chemical and Arachem Group, a Saudi Arabia chemical company. Stevens and the JV partners had been working on the plant location decision for more than two years. A final investment decision would be made in 2017 or 2018. The partners initially looked at more than 50 sites, primarily in Texas and Louisiana. The partners had narrowed the decision down to a site in Louisiana near Baton Rouge. Before an investment decision could be made the JV partners required tax abatements from the local government commissioners and the school board. As the meeting continued, Stevens thought about how the various stakeholders in the project and how the community response should be incorporated into the project investment decision