VACHERIE — State, regional and local officials joined the Yuhuang Chemical Inc. project team and visiting Chinese dignitaries as they formally broke ground on the first of three phases of the $1.85 billion, methanol-manufacturing complex Friday in St. James.

The ceremonial groundbreaking followed a project celebration event for community members, invited guests and federal, state and local officials at the St. James High School Auditorium.

Yuhuang Chemical Inc., a subsidiary of Shandong Yuhuang Chemical Co. Ltd., will develop the manufacturing complex along the Mississippi River in St. James Parish. The project represents the first major foreign direct investment in Louisiana by a company from China, parish officials said.

“Assisting our unemployed and under-employed residents of the community is a priority in St. James Parish,” Parish President Timmy Roussel said. “In the various meetings with Yuhuang Chemical representatives, it is our belief that they can help in providing a better lifestyle for many in St. James Parish. My administration will continue to take advantage of every opportunity available to improve life situations for its citizens.”

In July 2014, Yuhuang Chemical announced it would create 400 direct jobs with an average annual salary of $85,000, plus benefits. In addition, Louisiana Economic Development (LED) estimates the project will result in 2,365 indirect jobs.

As site development begins, the company estimates the project will generate 2,100 construction jobs at peak building activity. The first phase of the methanol project is projected to begin operations by 2018.

“We welcome Shandong Yuhuang Chemical and Yuhuang Chemical Inc. to our state, as we recognize that our joint efforts in St. James Parish will produce extraordinary economic benefits and a better way of life for Louisiana families for many generations to come,” Governor Bobby Jindal said.

The company announced the project in July 2014, after which it purchased more than 1,300 acres next to the Plains All-American Pipeline terminal and finalized plans for the three-phase project.

After the first methanol plant is completed, the company will execute its multiphase strategy and develop two additional manufacturing projects on the property over 10 years. The company projects 50 percent of the methanol produced by the first phase will be sold to North American customers.