Gulf Coast Region to Maintain Leading Role in Chemical Processing Industry in 2008

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Owners of chemical plants along the United States' Gulf Coast region will easily lead spending for the Chemical Processing Industry (CPI) in 2008 with almost four times the total spending of the closest follower. Capital and maintenance spending planned for the CPI next year in this region exceeds $4.7 billion, as identified in Industrial Info's North American Project Database. With the help of plans by a few CPI plant owners, the level of spending for 2008 in the Gulf Coast grows substantially over the $2.3 billion identified for 2007 at this time last year.

Nearly 2 billion of the spending identified with a potential construction start next year comes from Shintech Incorporated with major investments planned for vinyls and chlor alkali. Shintech has long planned a second-phase expansion of the vinyls complex currently nearing completion in Plaquemine, Louisiana. Momentum appears strong that the second phase with a price tag estimated at $900 million could get underway in 2008. Earlier this year, Shintech announced plans to construct a grassroot vinyls complex near Texas City, Texas, with an investment exceeding $800 million. Both of these investments are very aggressive, although current strength in the overall CPI indicates that capacity could be utilized in both domestic and export markets.

Westlake Chemical Corporation (Houston, Texas) is considering adding a large chlor-alkali unit at its Geismar, Louisiana, site that could begin construction early next year. The projects planned by Shintech and Westlake are just a couple of the major investment examples identified for next year, each with a focus on core petrochemical or base chemical production in the region. The Gulf Coast is home to less than 500 CPI plants, only 14% of the entire CPI in the United States. The region's access to feedstock, integrated transportation logistics - including ports, terminals and rail - and many other factors play a key role in maintaining future investments. With no substantial amount of new ethylene capacity planned domestically and the exponential growth of foreign markets for almost every chemical commodity, CPI plants in the region are positioned better than most to benefit from the export markets that have greater future potential then domestic markets.

The Gulf Coast is the coastal stretch of Texas, Louisiana, Mississippi, Alabama and Florida, which collectively is home to nearly 2,400 industrial plants operating in the region across all industry sectors. Spending in this region often dictates the outlook or momentum for spending elsewhere in the country, as it plays an integral role in providing feedstock for balance. Considering the very strong outlook based on spending currently identified in the region, most would expect 2008 to be another year of substantial growth opportunity.

View Plant Profile - 1073564 1065667 1018077
View Project Report - 01011560 02006123 02006222

Industrial Info Resources (IIR) is the leading company for marketing information services covering the industrial process, heavy manufacturing and energy-related markets throughout the world. For more than 24 years, IIR has provided accurate and timely intelligence through products such as plant and project information databases, focused market databases, industry forecasting, key industry contacts, industry and territorial map products, direct marketing services and applications, and daily industry news.