Lake Charles, Louisiana—October 21, 2015—Dongsung Finetec America LLC, announced today that after more than three years of evaluating the US natural gas markets, it has moved forward with its plans to expand its operations from South Korea. Dongsung Finetec is well established as a world leading force in the development and manufacturing of many types of insulation, specializing in Cryogenic insulation.
Dongsung Finetec America LLC has secured a lease with the Port of Lake Charles with the intention of developing a manufacturing facility. The facility will cater to the cryogenic industry and aspirations of the USA based LNG companies along with the full range of traditional insulation materials and service, such as hot, cold, personal protection and acoustics.
James Choi, Senior VP with Dongsung, said: “We are very excited to be expanding our activities to the USA. The help and assistance of the Port of Lake Charles has been central to our decision. Clearly the USA and Southwest Louisiana are becoming significant players in the LNG industry. We have made a commitment to continue supporting our existing international customers here in the USA. We feel confident that our world-class insulation technology can add value to all manner of projects within the USA. We feel the market, even in these times of low oil prices, has a bright future in relation to the developing natural gas industry. Through technology transfer and providing local long term opportunities for residents in Lake Charles, we will be able to offer a positive long term impression on the community. Our plans are for the long term broader US and Americas markets; we are not specific project driven—we are here for the long haul.”
William R. Rase, III, Executive Director of the Port of Lake Charles, said: “The decision of Dongsung Finetec to choose the Port of Lake Charles for its first in the USA manufacturing site with its 200 manufacturing jobs demonstrates the tremendous spin-off positive impacts of the Calcasieu Ship Channel and the many new and existing industries and businesses dependent upon the channel for jobs and growth in the region.”
Dongsung will now embark on a two-phase development of the leased facility in Lake Charles. Phase one is the restoration of the existing circa 59,000 square feet building. Phase two is the installation of the manufacturing lines, equipment recruitment along with training and development of the workforce. The projected permanent employment at the facility could reach as many as 200 people with triple that number employed at the workface during the installation of the insulation material.
The facility is expected to be fully operational by May 2016 with further expansions to follow aligned with the requirements of the LNG industry within the USA. The overall initial phased investment will be in the region of $5,000,000 USD.