Killeen Chemical Plant Plans to Undergo $100 Million Expansion

MGC Pure Chemicals America (MPCA), a Killeen-based chemical plant specializing in the production of high-purity hydrogen peroxide crucial for the semiconductor industry, is embarking on a significant expansion initiative, as announced by the Killeen Economic Development Corporation on Wednesday.

The planned expansion involves a substantial investment exceeding $100 million to enhance the production capabilities of the facility situated in the Killeen Business Park at 4500 Roy J. Smith Drive, Killeen, Texas. This strategic move aims to double the existing capacity of the Killeen facility, responding to the increasing demands of the semiconductor industry in the United States.

To facilitate this expansion project, the Killeen City Council approved an incentive and personal property tax reimbursement agreement for MGC Pure Chemicals America totalling $600,000 on Tuesday night. This financial support underscores the collaborative efforts between the local government and the private sector to foster economic development and job creation within the community.

Notably, the journey of MGC Pure Chemicals America in Killeen began in August 2017 when the Japanese-based company selected the city as the location for its manufacturing plant. The $32 million facility commenced operations in March 2019, marking a significant milestone for the company and the local economy. The establishment of the plant was met with some initial concerns from Killeen residents who were unaware of the proposed chemical plant.

Addressing the secrecy surrounding the project, John Crutchfield, the then-executive director of the Killeen EDC, explained that confidentiality was crucial for the deal's success. This confidentiality aimed to keep costs low and prevent other companies from gaining insights into the business dealings. The initial concerns also revolved around the proximity of the chemical plant to residential areas, such as River Oaks Apartments and older homes, as well as the nearby Leo Buckley Stadium.

Hydrogen peroxide, the key product of MGC Pure Chemicals America, finds diverse applications. In households, it is commonly present at lower concentrations (3-9%) for medicinal purposes, clothes and hair bleaching. In industry, higher concentrations of hydrogen peroxide serve as a bleach for textiles and paper, a component of rocket fuels, and in the production of foam rubber and organic chemicals.

The website also underscores the chemical's instability, highlighting its tendency to decompose readily to oxygen and water, releasing heat in the process. Although non-flammable hydrogen peroxide is a potent oxidizing agent that can lead to spontaneous combustion when in contact with organic material.

As MGC Pure Chemicals America embarks on this ambitious expansion, the partnership with the local government, job creation, and investment in cutting-edge technology are poised to contribute significantly to Killeen's economic landscape and reinforce its position as a hub for advanced manufacturing in the semiconductor industry.