OAKDALE — Texas-based Virtual Engineering Operations plans to build a $100 million refinery at the old Arizona Chemical plant site just west of Oakdale.

The Allen Parish Police Jury recently agreed to lease the parish-owned property to the Kingwood, Texas-based company.

VEOPS President J. Craig Harrington said construction of the proposed facility should begin in July and take 18 months to complete.

The facility will reportedly provide about 50 full-time jobs. Many of those jobs, including refinery operators and office staff, will reportedly have average salaries of $100,000 a year.

There will be about 200 construction workers building the refinery, with local labor being used when possible, Harrington said.

“These are good-paying jobs, which the area needs, and would bring in a $10 million cash flow to the area from wages alone,” Harrington said.

An additional 140 jobs could be created from spinoff businesses and future construction in Phase 2 of the project.

The refinery will process 20,000 barrels a day of crude to produce diesel fuel for farmers, jet fuel and heating oil, Harrington said.

“America needs to get back to industry and manufacturing and, hopefully, we can do that,” he said.

Mayor Andrew Hayes said the refinery will mean a lot for the city. “It will be a positive for Oakdale because it will mean more jobs at all levels, and what that will do is increase our taxes, revenues and lower our high unemployment rate,” he said. “It will also create more jobs outside of the factory.”

Allen Parish’s unemployment rate was 8.6 percent as of December, down slightly from 9.5 percent the previous year.

The refinery will ship its product to Alexandria, Lafayette and surrounding areas over the existing railway and by trucks using La. 10 and U.S. 165. VEOPS also plans to use existing structures on-site, including offices, labs, warehouses, foundations and rail lines to develop the refinery.

Harrington would like to try other developments, including equipment refurbishing, in the future. “This could be the beginning of a revitalization,” he said. “It is certainly a good foundation for developing other projects.

“I grew up in Oakdale, and driving around you could see the conditions of things,” Harrington said. “Things had changed over the last 40 years, and I know there was a need for jobs and there are good workers in the area.”

The refinery will work with the Louisiana Technical College-Oakdale campus to establish an apprenticeship program to help train potential employees.

Arizona Chemical, a wood chemical manufacturing facility, closed in 2001. The property was later given to the Allen Parish Police Jury for economic development.

(WIKIMEDIA COMMONS)