Chemical Processing Industry Investments on the Rise in Iowa

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Researched by Industrial Info Resources (Sugar Land, Texas)--Industry in Iowa often revolves around farming and agriculture, therefore it is not generally considered to be a top spender for the Chemical Processing Industry (CPI). In the past two years, the number of projects, as well as the total CPI investment, has increased in the state.

In general, a very small number of capital projects occur each year in Iowa. Since 2008, there has been an average of approximately four CPI projects each year. The lowest number of projects that kicked off in the last five years was in the midst of the economic recession, with only one project in 2009 that had a $3.5 million investment value. But capital spending started to pick up in 2011, with nine planned projects that were reported and a total investment value (TIV) of $33 million. These capital projects, which are located in four different plants, have all since been completed.

It is expected that five capital projects will be kicking off in 2012 with a TIV of $493 million. The majority of this spending comes from two different grassroot plants. CJ America (Los Angeles, California) is currently constructing an amino acid plant in Fort Dodge. Construction of the 12 building structures that will make up this plant started back in May. With Gray Construction (Lexington, Kentucky) acting as the general contractor, the $323 million plant is expected to be completed by the end of 2013. Also in Iowa, Valent BioSciences Corporation (Libertyville, Illinois) is looking to invest approximately $150 million to build a bio-pesticide plant. The construction is expected to begin in 2012, but the plant will be not operational until the first half of 2014.

Looking ahead to 2013, Industrial Info has already identified seven capital projects scheduled to kick off with a TIV of $1.5 billion. This large investment is primarily due to a $1.3 billion grassroot fertilizer plant that is planned for construction by Iowa Fertilizer Company, a subsidiary of Orascom Construction Industries (PINK:ORSCY) (Cairo, Egypt). There are also two additional grassroot plants planned to kick off in Iowa during 2013: SynGest's (San Francisco, California) ammonia fertilizers plant, and a plant being constructed by Natural Nutrients (Houston, Texas) to produce glycerin.

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