Chemical Processing Investments in North Carolina More than Double Original Forecast for 2008

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Chemical Processing Industry (CPI) of North Carolina is relatively small, with just over 100 CPI plants currently in operation and employing an estimated 16,200 people, according to Industrial Info's North American Plant Database. Despite the industry's small size, the state has gained the attention of Reliance Industries (BOM:500325) (Mumbai, India) and will be the home of a new brownfield resins plant to be located in Kinston, North Carolina. The plant, estimated to cost more than $200 million, will occupy the former plant of Unifi Incorporated (Greensboro, North Carolina) next to the existing DuPont (NYSE:DD) operations at the site. Construction is expected to begin this fall upon the finalization of an engineering and construction contractor.

Earlier this year, total CPI investments in North Carolina were forecast to reach an estimated $375 million, and now as the year has passed the midway point, total CPI project activity is expected to peak at nearly $766 million this year. About $675 million of this spending has been funded and appears to be on a positive course to actually remaining on schedule and getting under way this year. With the exception of nearly $150 million planned to begin construction this year by PCS Phosphate Company Incorporated, a great deal of the investments in new capacity are in polymers, fibers and polyesters intermediates. North Carolina and its neighbors have historically been the home for these chemical commodities that support the production of high performance fabrics and related materials.

INVISTA Incorporated (Wichita, Kansas) is another big contributor with plans to begin construction this fall for an estimated $200 million expansion of its polyester intermediates plant located in Wilmington, North Carolina. This project will include several new installations plus the installation of equipment relocated from other plant sites. At least four additional projects, ranging in size from $50 million to $100 million, are planned to begin construction before the year's end.

Only six CPI plant closures have been identified since January 2007. No grassroot plant start-ups are planned for this year, although at least three have been identified that are planned to be built between now and 2012.

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