DALLAS — Read this story and more North Texas business news from our partners at the Dallas Business Journal
Dallas-Fort Worth, one of the top destinations for corporate relocations in the nation, is accustomed to gaining the headquarters of companies, not shipping them off to other states.
Why then is Placid Refining Co., a petroleum company with deep ties to the Hunt family and companies owned or controlled by descendants of oil tycoon H.L. Hunt, relocating its headquarters from the Uptown area in Dallas to downtown Baton Rouge?
One reason, and probably the main one, is to be closer to the company’s primary operations, Tyler Gray, a Placid Refinery Co. director and the company’s secretary for Corporate and Government Affairs, said in an interview with the Dallas Business Journal. Placid has a big refining facility in nearby Port Allen and is investing $66 million in modernizing it.
Incentives played a role in the relocation decision, too. To lure the $66 million investment, Louisiana offered Placid Refining an incentive package that includes a performance-based retention and modernization tax credit of up to $500,000, according to Louisiana Economic Development officials. Placid is also expected to participate in the state's Industrial Tax Exemption and Enterprise Zone programs, according to LED, the state agency charged with strengthening Louisiana’s business environment and economy.
Placid, an independent petroleum refining company, expects to create 20 new direct jobs with the move and retain all 215 current positions at its Port Allen facility. Louisiana Economic Development, a state agency, estimates the project will result in 88 new indirect jobs for a total of 108 new jobs in the Capital Region of the Bayou State.
The new location and investment will enhance refining processes at the Port Allen facility and strengthen Placid’s competitive position in the state, Placid Refining President Rob Beadle said.
The decision to move “is about growing our operations and centralizing in Louisiana,” he said.
“Placid has a long history in the state with operations centralized in Port Allen and employing generations of families,” Beadle said. “This investment is about transitioning our headquarters from Texas so we can better support our operations.”
Beadle, who has been president of Placid since December 2021 and been with the company in various roles for 25 years, got his bachelor’s degree in mechanical engineering from the University of Louisiana-Lafayette and his MBA from Louisiana State University, according to his LinkedIn profile.
Placid Refining bought an office building and parking lot in downtown Baton Rouge and will move up to 50 of its employees into the building, Gray said. Placid is renovating the building and hopes to move the employees in by the end of the year.
The Business Journal drilled down on reasons for the move from Dallas in the interview that follows:
What’s the connection between Placid Refining’s headquarters being in Dallas and its primary operations being in Louisiana?
The refinery in Port Allen has been under several different names over the years including Placid Oil back in the day, and that was owned and started by H.L. Hunt.
Besides relocating to be closer to operations, what factored into the decision to move?
The refinery has been owned by Placid in some form for almost 50 years. With the growth and evolution of the company over the years, there's been leadership change. We have a new president that started his first day in that capacity Dec. 1, 2021. During that process, there was a natural attrition to Louisiana. Now we're moving the (leadership team) positions to Baton Rouge (officially) because the people have already been migrating.
You’re asking, so, why are we moving? Because all of our assets are located here in Louisiana. We operate pretty heavily along the Mississippi River and its tributaries. And a majority of our workforce is based in Louisiana. It really just made sense. All of our leadership team will be downtown (in Baton Rouge). It's not like Texas is doing anything different or whatever. Operating on the Mississippi River is a big part.
Was there any attempt to keep the Placid headquarters in Dallas, in terms of incentives being offered, from the city of Dallas or the Dallas Regional Chamber or the state of Texas?
No, there wasn’t. In all fairness to them though, I never even asked. It just made more sense operationally and all that.
I know Dallas and local business groups try to attract and retain headquarters of companies of all industries and sizes. They tally them up, they tout them, they announce them when they come. Do you have any advice for the Dallas Regional Chamber, the city or the state on tips for keeping a company like Placid?
Even though you have these smaller companies, there are those of us that have a long history with the state. Like Placid has the Hunt connection, right? I guess the advice I would give would be dance with the girl that brought you there. Don’t always be out looking for the bigger, better company or deal. Our move to Louisiana makes sense, but it doesn’t mean we wouldn’t have thought about it (staying), and I never heard from them.
With Dallas being so much bigger than Baton Rouge and having so many other companies, is there a sense that you can command more attention there as a company by being headquarters there rather than in Dallas? Like you’ll be a big fish in a smaller pond?
When I look around downtown, we’re going to be the only oil and gas company headquartered in downtown Baton Rouge. It’s going to have its pluses and minuses. We do have environmental activist activity (in Baton Rouge). We’re not looking to attract attention.
You’re saying you’re going have a higher visibility there, and that pros and cons come with that?
That's accurate.
