Koch Methanol’s Acquisition Of Majority Ownership Stake In St. James Parish Joint Venture

Jones Day advised Koch Methanol, LLC in the deal.

Koch Methanol Investments, LLC (Koch Methanol), a subsidiary of Koch Industries, and Yuhuang Chemical Industries Inc. (YCI), a wholly owned subsidiary of Shandong Yuhuang Chemical Company, have recapitalized YCI Methanol One, LLC (the “Joint Venture”).

As a result of this transaction, Koch Methanol is the indirect, majority owner and managing member of the Joint Venture. The Joint Venture is currently constructing a $1.85 billion methanol production facility in St. James Parish, Louisiana.

As part of its original investment, affiliates of Koch Methanol received the exclusive methanol offtake rights from the new facility – expected to be as high as 1.7 million metric tons per year – as well as the rights to construct, own, and operate the methanol terminal assets to facilitate the outbound flow of methanol via marine, rail, and truck logistics.

Koch Methanol, LLC and its affiliates are committed to supplying methanol to a global customer base in a competitive and timely manner. Methanol is used in the manufacturing of countless everyday products, including plywood, carpet, fuels and plastics. Koch Methanol, LLC is a subsidiary of Koch Ag & Energy Solutions, LLC with offices in China, Houston, and Wichita, KS.

Jones Day team was led Robert J. Graves (Picture).

Involved fees earner: Robert Graves – Jones Day;

Law Firms: Jones Day;

Clients: Koch Methanol;

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Author: Ambrogio Visconti