Chemical Processing Industry of Alabama Maintains Growth; Forecast Show Another Year of Big Spending in 2008

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Researched by Industrial Info Resources (Sugar Land, Texas)--Alabama is home to only 97 operational chemical plants, although capital and maintenance spending in the Chemical Processing Industry (CPI) over the past couple of years has consistently met or exceeded $300 million annually in total spending. For 2007, capital and maintenance reported for Alabama's CPI is expected to reach or exceed $344 million. This equals an average project total investment value (TIV) of $15 million per project, considerably more then the national CPI average project TIV of $9.5 million expected in 2007.

Click on the image at right to view a chart of operational chemical plants in Alabama.

Looking ahead to 2008, CPI plant owners in Alabama are expected to continue this trend of increased spending with an estimated $300 million already identified as part of Industrial Info's North American Project Database. The average TIV for these projects is more than $18 million, a considerable jump over 2007. These investments represent a range of chemical commodities, including chlorine, carbon black, phenol, carbon fibers and polymers. The most prominent and the largest investments will be for grassroot polyethylene terephthalate (PET) capacity, carbon fiber expansion. The expansion of carbon fiber capacity is consistent with an ongoing trend of expansion for this product both nationally and within the state. Carbon fiber producers are enjoying increased demand from a greater use of the fiber in consumer products and its performance as a strong and durable material.

Future capacity growth for polymers, resins and plastics in the state is reassuring, as these sectors provide a majority of the CPI jobs in the state, employing more than 7,100 of the total CPI employment in the state out of approximately 13,800 people. AlphaPet Incorporated (Decatur, Alabama), a subsidiary of Indorama Polymers Limited (Bangkok, Thailand), is expected to begin construction early next year for the construction of a grassroot PET plant that could offer the state another 100 or more jobs when complete in 2009. For more information, view related October 16, 2007, article - AlphaPet to Build $160 Million PET Plant in Alabama.

The overall health of the Southeast Market region is good, and another big year for Alabama CPI plant owners only adds to the momentum. The Southeast Market region, which includes Alabama, Mississippi, Tennessee, Georgia and Florida, is expected to invest a combined $650 million in 2008. Based on current project activity, Alabama will easily lead half of the total CPI project activity in the region during 2008.

View Plant Profile - 1074448
View Project Report - 04003411

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.

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