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A Killeen chemical plant that makes super-pure hydrogen peroxide used in the semiconductor industry is planning a $100 million expansion, the Killeen Economic Development Corporation announced Wednesday.
“MGC Pure Chemicals America, Inc. (MPCA) has announced plans to invest over $100 million to expand its production facility in the Killeen Business Park in Killeen, Texas located at 4500 Roy J. Smith Drive. The investment will double the current capacity of the Killeen facility. The company produces chemical materials for the semiconductor industry,” the Killeen EDC said in a news release.
“We are pleased to continue our growth in Killeen with these investments”, said Lee M. Bauer, general manager with MPCA. “The growth of our customers in the semiconductor industry in the United States is driving the need for us to add new capacity. We appreciate the support from the City of Killeen and Killeen Economic Development Corporation throughout the process to get us to this announcement.”
In early 2023, MPCA purchased five acres from the Killeen EDC adjacent to the current site in the Killeen Business Park in anticipation of the expansion. The total investment will bring in 10 new jobs, with an average salary of approximately $50,000 per job.
In this aerial photo from 2019, the MGC Chemical Plant maintains operations at 4500 Roy J. Smith Drive in Killeen.
Herald File Photos
“MGC Pure Chemicals has been a great corporate citizen, and we are very excited to see them re-invest in Killeen,” Killeen Mayor Debbie Nash-King said in the release. “Their planned investment will be one of the largest private sector investments in the history of our city. We wish MPCA great success as they grow and support the semiconductor industry.”
On Tuesday night, the Killeen City Council approved an incentive and personal property tax reimbursement agreement for MGC Pure Chemicals America for $600,000.
In August 2017, it was announced that Japan-based MGC Pure Chemicals America had selected Killeen as its next manufacturing plant location.
The $32 million plant opened in March 2019 after concerns had been brought up by Killeen residents who said they were kept in the dark that a chemical plan was being considered for Killeen.
The reason for the secrecy, according to John Crutchfield, who was executive director of the Killeen EDC at the time, was because MGC Pure Chemicals America required confidentiality for the deal to go through. That’s to ensure that the cost stays low and other companies do not become privy to any business dealings, Crutchfield said.
Concerns were also raised about a chemical plant being built in north Killeen, about 1,000 feet from River Oaks Apartments. Older homes and Leo Buckley Stadium are about 3,000 feet away from the plant.
“Hydrogen peroxide is found in many households at low concentrations (3-9%) for medicinal applications and as a clothes and hair bleach. In industry, hydrogen peroxide in higher concentrations is used as a bleach for textiles and paper, as a component of rocket fuels, and for producing foam rubber and organic chemicals,” according to the National Institues of Health website.
“Hydrogen peroxide is unstable, decomposing readily to oxygen and water with release of heat. Although nonflammable, it is a powerful oxidizing agent that can cause spontaneous combustion when it comes in contact with organic material,” according to the website.
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