Grassroot chemical plant startups for '06 meet goals
Including six plants currently under construction that plan to begin commercial operations this month, the number of grassroot plants starting up this year for the chemical processing industry (CPI) in the United States and Canada only fell two plants short of the original forecast for 33 new plants. Considering the volatility of global markets and the domestic costs of fuel and transportation, this is quite a remarkable achievement and another favorable indicator as to the overall good health of the CPI.
Texas, Tennessee, Michigan and Florida each lead the pack with 11 new plant startups between them and each state being home to more than one new plant. The remaining 14 states with new successful plant startups this year enjoyed only one new plant each. In Texas, you expect to see several new plants come online each year due to its diverse mix of plant types and its access to marine ports, railways and pipelines. These four new Texas plants will initially employ over 220 people. A new plant owned and operated by Nashtec LP (Corpus Christi, Texas) located in Gregory, Texas, is expected to have an almost immediate impact and contribution to the region’s economy with further expansion already being considered. For details see Industry Alert titled: Nashtec Moves Forward with Construction Phases of Grassroot Alumina Trihydrate Plant in Texas.
Tennessee experienced the startup of three new plants this year, half the total it has seen in the last six years. The largest and most significant was by a venture named DuPont Tate & Lyle BioProducts LLC (Loudon, Tenn.) to produce 1, 3 propanediol. This new plant, estimated at $50 million to construct, is located in Loudon and began operations in October, initially employing over 20 people with the expectations of that number growing in the very near future.
The remaining six plants planned to begin operations this month represent a geography extending from Texas north to Illinois and East to North Carolina promising another 150 to 200 new jobs upon startup.
“For the CPI to get this close to the original forecast is quite remarkable. Based on the number of grassroot CPI plants we have begun tracking for 2007, next year we see the potential of realizing another 40 or more new plant startups,” said Trey Hamblet, vice president, Chemical Processing Group with Industrial Info.
Industrial Info Resources is a marketing information service company that has been doing business for more than 23 years. IIR is respected as the leader in providing comprehensive market intelligence pertaining to the industrial processing, heavy manufacturing and energy-related industries throughout the world. For more information, visit www.industrialinfo.com.