CPI Investment Forecast for the Midwest Market Region Continues Upward Trend in 2008

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Researched by Industrial Info Resources (Sugar Land, Texas)--Chemical plant owners in the Midwest market region of the United States began construction on an estimated $88 million in capital and maintenance projects during 2007, nearly double the project activity in 2006. This strong level of spending and investments appears to have set the stage for great momentum in 2008 for the region. Industrial Info is currently tracking more than $250 million in capital and maintenance project activity planned to kick-off this year identified as part of Industrial Info's North American Project Database. Although the total investment value (TIV) is expected to be sharply higher this year, the number of individual projects will remain relatively the same at 30.

This region is well known for its agricultural industry and less for its Chemical Processing Industry (CPI), and for good reason. There are only 191 CPI plants currently operating in the region employing just more than 17,500 people; only two regions in the United States are home to fewer CPI plants: the Rocky Mountains and New England. Despite the size of the industry in the region, the plant owners here have capitalized on many of the synergies they share with the agricultural industry, including the production of bio polymers and projects like that of NatureWorks LLC (Blair, Nebraska), which is planning a more than $50 million polylactide (PLA) polymers unit addition at its Blair plant this summer. NatureWorks PLA polymer is derived from 100% annually renewable resources.

Midwest Chlor-Alkali (Indianapolis, Indiana) plans to construct and operate a grassroot chlor-alkali plant in Eddyville, Iowa, that will share in the site synergies with an existing corn milling plant in Eddyville, Iowa. This plant is expected to cost an estimated $68 million to construct and be in operation by late 2009. It's projects such as these and several more of equal size and importance to the region that are planned to get underway this year that will continue to bring opportunity to the region.

Midwest Chlor-Alkali isn't alone in its plans for constructing a grassroot plant in the region. At least five grassroot plant projects are being tracked in the region, two of which are already under construction. These include CHS Incorporated (Saint Hilaire, Minnesota), which is expecting to start up a new fertilizer mixing plant in Warren, Minnesota, in the next couple of months. Also Jacam Chemicals LLC (Sterling, Kansas) is nearing the completion of a new plant in Lyons, Kansas, that in part relocated existing operations from another site.

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