Planned Grassroot Construction for the North American Chemical Industry Forecast to Slow in 2004

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). It's only mid year and plans for grassroot construction in the chemical industry for the United States and Canada during 2004 is already off its mark. Industrialinfo.com is currently tracking twenty-three grassroot chemical plants planned to begin construction during 2004 that will employ approximately 2,000 people when completed over the next two years.

"Generally by this time of the year we have identified over thirty or even forty grassroot chemical plants that have the potential to begin construction in the upcoming year. So far the number of grassroot projects we have identified for 2004 construction starts are minimal, leading us to believe most chemical companies are scrutinizing new capacity that calls for grassroot construction," commented Trey Hamblet, Chemicals Group Manager for Industrialinfo.com. "Although we are likely to identify additional grassroot plants planned for kick-off during 2004, I don't expect the number to increase dramatically," Mr. Hamblet added.

Click the image to the right to view an analysis of kick-off dates, plant states and SIC codes for these grassroot chemical plants.

Over 80 percent of the grassroot plants identified for a 2004 kick-off are currently scheduled to begin construction in the first half of next year. As 2003 progresses, project schedules may change or be delayed depending on how several economic drivers fare in the latter half of 2003. Interest rates, feedstock costs, and energy cost for power and natural gas each play significant roles in dictating project schedules.

Industrial inorganic chemicals and plastics & resins will make up the majority of new plant construction representing ten new plants and approximately 1,100 new job opportunities. A recent recovery in the demand for polypropylene and polyethylene domestically is a key driver behind the plastic sectors anticipated strong performance.

For details on the twenty three grassroot chemical projects listed on this article contact Industrialinfo.com's Member Center