CPI Investments in the Mid-Atlantic Region Forecast to More than Double in 2007

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Researched by Industrial Info Resources (Sugar Land, Texas). Investments in the Chemical Processing Industry (CPI) along the East Coast, specifically the Mid-Atlantic region, have historically averaged $400 million each year in the recent past. Industrial Info is currently tracking 68 active capital and maintenance projects identified to begin construction in the region next year and the total spending could reach $850 million. The actual number of projects remains mostly unchanged from previous years at around 70 projects, with most of the expected increase in spending represented by at least six projects that are forecast to exceed $50 million each. The majority of this construction activity is proposed to be major unit additions at existing plant sites.

Click on the image at right to view a chart showing the breakdown of spending by state.

Construction is expected to begin for potentially five grassroot CPI plants in the region next year adding to the current estimated 366 operational CPI plant locations employing an estimated 75,000 people. The Mid-Atlantic region consists of Maryland, North Carolina, South Carolina, Virginia, and West Virginia and is home to a large population of plastic and fiber producers, which represents nearly 20% of its total plant population and one-third of the CPI employment in the region. It’s these same segments that will contribute to the large increase in spending next year such as plans by Eastman Chemical Company (NYSE:EMN) at its West Columbia, South Carolina plant, Cytec Industries, Incorporated with plans for a $100 million investment at its Greenville, South Carolina plant plus DSM Dyneema and a new production line at its Greenville, North Carolina plant site.

The region is also home to a significant number of inorganic and organic chemical producers at almost 100 plants employing nearly 18,000 people, although most of these plants generally produce very niche or specialty products and don’t attract an intensive amount of capital dollars annually as their peers in the South producing more traditional petrochemicals. The one big exception for next year that appears to have some real potential within this segment is a planned grassroot cyclic polybutylene terephthalate (cPBT) plant by Cyclics Corporation (Schenectady, New York). This nearly $130 million project has been in the planning stage since 2004 and it appears that the selection of a site location could take place early next year with construction by year’s end.

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