Supply Chain News / Economic Development / Ports

Danos Selects Port of Iberia for New Manufacturing Facility

The energy firm’s $23.2 million capital investment will create 100 new direct jobs in Iberia Parish

Gov. Bobby Jindal and Danos President and CEO Hank Danos announced the company’s selection of the Port of Iberia for a new $23.2 million manufacturing facility, which will create 100 new direct jobs with an average annual salary of $65,000, plus benefits. The announcement accompanies the approval of a 40-acre lease for the project by the port’s board of commissioners, with Danos beginning construction on a 172,000-square-foot facility in the Q4 2014.

The Danos manufacturing facility represents a key portion of a larger expansion announced by the company in May 2013. Danos also will build a new Gray, La., headquarters facility – near Houma, La. – at the intersection of U.S. Highway 90 and Louisiana Highway 24. Together, the headquarters and manufacturing facilities will represent a capital investment of $40 million, with 426 new direct jobs created over the next five years. Louisiana Economic Development (LED) estimates the entire project will result in an estimated 871 new indirect jobs, for a total of nearly 1,300 new jobs in the Bayou and Acadiana regions of the state.

Gov. Jindal said, “Danos is a major economic driver in Louisiana, and its decision to reinvest in our state represents a tremendous vote of confidence in Louisiana’s outstanding business climate, workforce and infrastructure. We’re proud that one of our leading oil and gas technology companies believes in the central role that Louisiana plays in the production of deepwater oil and gas in the Gulf of Mexico and beyond. With companies like Danos, Louisiana’s reputation as an innovative oil and gas leader will continue to grow and shape this vital industry. This project will provide high-quality jobs and great career opportunities for the people of our state for many years to come.”

With the expansion, Danos will retain 400 existing land-based jobs in Louisiana and create 200 construction jobs. The company also will maintain fabrication operations at its current headquarters site in Larose, La., where Danos was founded in 1947. In New Iberia, Danos will build offshore-bound production modules, as well as structural and process piping products, for the oil and gas industry. The Port of Iberia’s strategic location with direct access to the Gulf of Mexico will expedite product deliveries to all offshore locations, company officials said.

LED’s Business Expansion and Retention Group, or BERG, worked with Danos to identify growth opportunities within Louisiana. To secure the headquarters and manufacturing project, the state offered Danos a customized incentive package that includes a performance-based, $1.5 million Economic Development Award Program grant to provide infrastructure improvements for the new manufacturing location. The state also will provide the comprehensive workforce solutions of LED FastStart, the nation’s No. 1 state workforce development training program. In addition, Danos is expected to utilize Louisiana’s Quality Jobs and Industrial Tax Exemption programs.

At the Port of Iberia, Danos will lease 39.74 acres for the manufacturing facility on a waterfront tract of the port’s new 108-acre Millennium Expansion project on the eastern end of the 2,000-acre port complex. Construction of the Danos facility will begin in approximately six months, with hiring starting in the third quarter of 2015.

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