Gulf Island Fabrication expands marine division

Bolstered by state funding, Gulf Island Fabrication Inc. announced plans Friday to invest about $27 million for an expansion that will create 200 new jobs.

Gulf Island, Terrebonne Parish’s largest offshore drilling product company, is expanding its marine division.

Gulf Island CEO Kerry Chauvin said the company chose to locate the expansion in Houma for two reasons: The Houma Navigational Canal, which allowed the company to be competitive in the oil and gas industry, and the work ethic of the people in South Louisiana.

State Rep. Joe Harrison agreed, saying, “South Louisiana workers can output and outwork anyone in the world.”

“The company’s decision to expand in Houma as opposed to expanding outside the state will have a major impact on the economy in Terrebonne Parish,” said Mike Ferdinand, CEO of Terrebonne Economic Development Authority. “The expansion secures a commitment to the community.”

This is the first time that Gulf Island has sought help from the state, according to Chauvin.

The state is kicking in $2.3 million in performance-based financial assistance. The funds will be used to pave the company’s access road, and install a sewage line, water line with fire hydrants and a drainage system.

Preceded by platform work that is presently under construction, Chauvin said the plans for the expansion, which is already partially underway, includes a $6 million fabrication shop, a new warehouse and corporate headquarters.

The plan outline also includes a $15 million dry dock operated under its newly-created subsidiary Gulf Island Marine Fabricators, which will help build towboats for Mississippi River cargo.

“We’ve had many people invite us to move to Houston, in fact, almost strong-arm us. But the board elected to stay in Terrebonne Parish,” Chauvin said. “Our people are here, our buildings are here and we wanted to stay here. We will be here and we will support Terrebonne Parish.”

Gov. Bobby Jindal said the state should support existing Louisiana companies and build on the success of these companies by recruiting other businesses and industries to relocate or expand into the state.

“Expanding and growing our existing Louisiana businesses is our number one goal in economic development,” he added. “This expansion project at Gulf Island Fabrication will create new high-paying jobs in Terrebonne Parish and retain hundreds more.”

Gulf Island’s expansion will create jobs with an average salary of $53,000 annually, plus benefits, according to Jindal. The company’s payroll currently includes 1,300 workers.

“This is just the kind of business success, job creation and economic expansion that we must further in order to make Louisiana the best place in the world to raise a family, get a quality education and pursue a great career,” the governor said.

For the announcement, Stephen Moret, secretary of Louisiana Economic Development, and other government and economic-development officials, including Parish President Michel Claudet and Terrebonne Parish Economic Development Authority’s Mike Ferdinand and Mike Voisin, were present.

They all praised the company’s contribution to the state and local economies.

“This is another great example of the value of prioritizing the growth and development of our existing employers,” Moret said. “Gulf Island could have pursued this project in Texas or some other state, but they are doing it here in Louisiana because of the quality of our workforce and the high level of local and state support they continue to receive.”

State Sen. Reggie Dupre, D-Bourg, recalled Terrebonne’s high unemployment during the oilfield bust of the 1980s, explaining how Gulf Island helped build the economy up to its present-day success.

“Gulf Island Fabrication, under the leadership of (Kerry) Chauvin, was Terrebonne Parish’s phoenix,” Dupre said. “We rose from the ashes.”

Gov. Bobby Jindal touts Gulf Island Fabrication’s decision to expand its marine division at its Terrebonne Parish site. The $30 million expansion project will draw 200 more workers to the area earning on average $53,000 annually. * Photo by KEYON K. JEFF