The Calcasieu Parish School Board has penalized Indorama Ventures Olefins LLC for failing to comply with Industrial Tax Exemption Program requirements in 2022.

CPSB approved the ITEP for Indorama – a facility that produces ethylene – on March 10, 2020 with an exemption of 80 percent for years one through five and six through 10 with a requirement of five jobs with a required payroll of $150,000 in 2022.

In November 2023, CPSB received a notice of non-compliance from the Louisiana Department of Economic Development (LED) stating that this requirement was not met, as no jobs were added. As a result, the board was required to take action

This is not the first time that Inodorama has been penalized by CPSB for not complying with ITEP requirements. The board voted last year to modify the terms of the agreement to four years instead of five due to the company being out of compliance in 2021; they were required to add three jobs, but only added one.

Plant Manager David Hext said the facility has had difficulties recruiting and retaining qualified employees due to the requirements of the positions.

While they have been out of compliance in past years, he said at the meeting that Indorama presently meets the requirements of the ITEP.

In 2023, Indorama shifted into compliance by hiring 25 Louisiana residents with an average salary of $100,000 per job, and have “significantly increased” pay for process operators to remain competitive. Additionally, they have partnered with Sowela Technical Community College, McNeese State University and LA Works to fill positions.

He said that despite challenges at the start-up, Indorama has improved over the past few years, exhibiting increased liability and improved positive environmental, health and safety performance.

After two failed votes (one to revoke the ITEP entirely and one to defer any decision or action regarding the ITEP), the board settled on reducing Indorama’s tax exemption to 40 percent for future years with a vote of 11 to three.

Billy Breaux, District 13, Mary “Sister” Fontenot, District 4 and Dean Roberts, District 6, voted in opposition to the motion to penalize Indorama.

District 1 board member Aaron Natali was not present for the meeting.