VACHERIE — Gov. Bobby Jindal and Yuhuang Chemical CEO Charlie Yao announced Thursday the company will make a $1.85 billion capital investment in a world-scale methanol manufacturing complex on the Mississippi River in St. James Parish.

The project by Yuhuang Chemical Inc., a subsidiary of Shandong Yuhuang Chemical Co. Ltd., represents the first major foreign direct investment by a Chinese company in Louisiana.

Yuhuang Chemical will create 400 new direct jobs, with an average annual salary of $85,000, plus benefits.

In addition, Louisiana Economic Development estimates the project will result in 2,365 new indirect jobs, for a total of more than 2,700 new jobs in the Southeast Region of Louisiana and surrounding areas of the state.

At peak building activity, the company estimates the project will generate 2,100 construction jobs.

Construction will begin in 2016, with the first phase of the methanol project beginning operations by 2018.

“Following such historic foreign direct investment projects as Sasol in Southwest Louisiana and Benteler Steel/Tube in Northwest Louisiana, our state continues to raise the bar for attracting high-quality, world-class foreign direct investment projects,” Jindal said. “Foreign direct investment projects add great value to our state by creating high-paying jobs, increased levels of international trade and extraordinary career opportunities for the families of Louisiana.”

Jindal said it is no accident Louisiana now has a record-high number of people working in the state, adding companies from around the world continue to make huge investments in Louisiana.

“Our efforts reforming government, lowering taxes and improving our state’s business climate are paying off,” he said. “Louisiana truly is becoming the best place in the world to live, work and raise a family.”

St. James Parish President Timmy Roussel said the region welcomes Yuhuang Chemical to its diverse business and industrial family.

“This project should aid in bringing our unemployment levels even lower than the reductions already realized and also work well with improving our present economic situation,” he said. “I would like to thank Yuhuang Chemical for considering St. James Parish and the River Region as their place to do business. I look forward to a healthy relationship.”