Exxon Mobil Corporation (XOM - Free Report) recently announced its decision to construct a polypropylene production plant in Baton Rouge facility, Louisiana. Reportedly, this project is the largest capital development by the company in the state.
With the completion of the new unit construction, the production capacity of polypropylene in the Gulf coast area will surge by 450,000 tons annually. ExxonMobil is planning to start constructing this year and expects production to commence in 2021. Once the construction process is complete, the development is likely to create 65 permanent jobs. In the construction phase, ExxonMobil anticipates roughly 600 job creation.
ExxonMobil added that it has given its contract associated to construction, procurement and engineering to Turner Industries Group LLC and Jacobs Engineering Group Inc, both based in Baton Rouge.
The company is continuing its strategic investment initiatives along the Gulf coast area since there has been mounting demand for chemical products in the global market and a surge in supply of feedstocks. Polypropylene is used in various applications, comprising construction of auto parts that are much lighter and hence could improve fuel efficiency by reducing vehicle weights.
ExxonMobil has been taking initiatives to expand and construct manufacturing units along the Gulf coast area in the United States, and thereby had earlier planned to invest $20 billion. Investors should know that this new project is over and above with its initiatives to expand Gulf coast facilities.
Headquartered in Irving, TX, ExxonMobil currently carries a Zacks Rank #3 (Hold). Meanwhile, better-ranked players in the energy space include Enbridge Inc (ENB - Free Report) , Jones Energy Inc. (JONE - Free Report) and Golar LNG Partners LP (GMLP - Free Report) . All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Jones Energy expects 2019 earnings growth of 19% year over year.
Golar LNG delivered average positive earnings surprise of 92.8% in the preceding four quarters.
Enbridge beat the Zacks Consensus Estimate in the prior four quarters.
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