Chemical Plant Owners in Kentucky to Continue Investment Trend

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Kentucky is home to a relatively small number of chemical plants with just fewer then 100 locations, although the Chemical Processing Industry (CPI) historically spends big in the state. Total capital and maintenance spending for 2007 is expected to be down from a year ago at just $128 million, compared with an estimated $171 million in project activity that began construction in 2006. The interesting part of this comparison is the number of actual projects. Project spending during 2007 is the result of at least 28 projects identified as part of Industrial Info's North American Database while project activity in 2006 represented only 18 projects and nearly double the average project value .

This decrease in construction starts from 2006 to 2007 hasn't slowed progress toward growth in the coming year. More than $211 million in capital and maintenance project activity is already being tracked for potential construction starts during 2008 with an average project total investment value of nearly $10 million. This group of projects follows closely with the trend of CPI growth segments across the United States with most of the dollars for projects in the resins, vinyls and industrial gases sectors of the CPI.

Westlake Group (NYSE:WLK ) (Houston, Texas) is planning to begin construction for an estimated $65 million at its Calvert City, Kentucky, plant next year for an increase in both poly vinyl chloride (PVC) and chlorine capacity. Westlake has consistently spent time and resources to debottleneck and improve production efficiency at the site, making Calvert City one of the larger producers of these products in the Great Lakes region.

An estimated $70 million will be invested in 2008 for additional capacity of industrial gases. This new capacity will come through two major plant additions: one planned by Airgas Incorporated (Chicago, Illinois) and the other by Air Liquide America (Houston).

The increase in CPI spending expected next year in Kentucky appears to be consistent with the other industries planning spending in the state. For related information, see May 18, 2007, article - Power Industry Pushes Kentucky Industrial Project Activity Up 15% in 2007. Collectively across all 12 industry segments tracked by Industrial Info, Kentucky is home to nearly 800 industrial plant locations, contributing nearly $3 billion to the total U.S. industrial spending in 2007.

View Plant Profile - 1015744 1014865 1070761 1074911
View Project Report - 23002307 23002306 23002106 23002293

Industrial Info Resources (IIR) is the leading marketing information services company for 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.