Moving Forward

Less than a month after completing a $140 million expansion at its refinery at Krotz Springs, Delek US has announced its intention to invest $150 million more over the next five years in the St. Landry Parish facility.

The projects are expected to create 1,500 to1,600 construction jobs, at least 30 full time jobs that will pay $90,000 plus benefits, and nearly 60 indirect jobs, according to Louisiana Economic Development. The projects also will allow Delek to keep the 200 people it currently employs at Krotz Springs.

"This is exciting,” Gov. John Bel Edwards said during a press conference at the facility. He termed it “a huge deal for the state of Louisiana, but also Krotz Springs and St. Landry Parish.”

"This new $150 million investment in their Krotz Springs production facility further reinforces Delek as an anchor employer for our area economy," said Bill Rodier, executive director of St. Landry Economic Development. "We are fortunate to have such a dedicated group of more than 30-area elected leaders that came together to solidify the incentives necessary for us to be competitive on this investment and the great opportunities that will come with it."

The governor met with Uzi Yemin, a native of Israel who is Delek US CEO, during his economic development trip to Israel in October.

“This capital investment, these jobs, this opportunity that we are talking about, all could have gone elsewhere,” the governor said. “I’m delighted to see the tangible results of our meeting last fall.”

“That Delek is announcing major new investments in facilities and jobs in Krotz Springs less than a month after the completion of the company’s largest ever capital project is testament to our faith in the refinery, and the team that runs it,” Yemin said. “I’m pleased that our enhanced partnership with the State of Louisiana, St. Landry Parish, and the Port of Krotz Springs will protect the environment and further strengthen the refinery’s vitality.”

Delek will spend an additional $7.5 million to reinforce the banks of the Atchafalaya River and improve the dock at the Port of Krotz Springs that Delek uses to bring in about 40 percent of the oil for the refinery. The riverbank reinforcement will halt erosion that threatened to undermine the dock. The state will reimburse Delek $1.5 million over the next five years for the dock work, which officials say will allow the docks and refinery to operate during when the river is high.

Parish President Bill Fontenot said St. Landry is “very fortunate to have great employers like Delek showing their growing confidence in our area.” He said the economic impact of the investments “will create a tremendous boost to Krotz Springs, our parish, and our region’s economy.” He expressed gratitude “to all who hve worked so hard to make this project possible.”

Rodier echoed those comments, noting, “It takes a true team effort to bring a large project like this together. We are grateful to all our state, regional, and local partners for their great work in helping to make this growth a reality.”

Delek, which acquired the74,000 barrels-per-day refinery from Alon in 2017, specializes in gasoline, diesel fuels, petrochemicals and heavy products. It has other refineries in Tyler and Big Spring, Texas; and El Dorado, Arkansas. The company is based in the Nashville area but is historically connected to the Israel-based Delek Group, which spun off from the company in 2006.

Three things to know about this story:

1. Delek will invest $150 million over the next five years in projects at its Krotz Springs refinery that are expected to create 1,500 to1,600 construction jobs and at least 30 full time jobs that will pay $90,000 plus benefits.
2. Delek will spend an additional $7.5 million to reinforce the banks of the Atchafalaya River and improve the dock it uses at the Port of Krotz Springs.
3. The projects also will allow Delek to keep the 200 people it currently employs at Krotz Springs.