Grassroot Chemical Plant Start-Ups Rise over Previous Year in 2008

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Researched by Industrial Info Resources (Sugar Land, Texas)--At a time when woes in the global economy are a staple in daily news, the Chemical Processing Industry (CPI) actually saw an increase in new plant start-ups in the previous year. Industrial Info tracked and reported that 25 North American grassroot CPI plants started commercial operation last year compared with only 21 in 2007.

With no surprise, the Southwest and Great Lakes market regions lead the pack with seven and six new grassroot plants, respectively. The Southeast region follows with three, and the Mid-Atlantic, Northeast and Rocky Mountains each had two. The Southwest market region is thought to be among the strongest regions for the CPI as it is home to a large number of well-integrated chemical and petrochemical plants along the Gulf Coast region.

Despite the comparably smaller size of the CPI in the Rocky Mountain region, an average of two new plants have started up in the region consistently for the past several years. Continuing with this trend, the region had two new grassroot plants open their doors in 2008 and expectations for this also remain optimistic. For related information, see December 16, 2008, news article - Chemical Plant Owners in Rocky Mountain Region Prepare for a Better Year.

The start-up of 25 new plants have created more than 1,000 new jobs for the CPI. Shintech Louisiana LLC's site in Plaquemine saw the long-awaited plant become operational in August. The 300-person plant produces chlorine, caustic soda, VCM and PVC. Phase II, which is expected to be complete by the end of 2010, will increase the production of these products. Also significantly contributing to the large number of new jobs created are Jacam Chemicals LLC's (Sterling, Kansas) Lyons, Kansas, site, which generated 100 jobs, and Spartech Corporation's (Clayton, Missouri) plastics plant in Greenville, Ohio, with 150 employees.

Industrial Info is currently tracking 37 CPI grassroot plants with a 2009 start-up date in North America. This number will most likely be adjusted as the year begins and the database continues to be monitored.

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Industrial Info Resources (IIR) is a marketing information service specializing in industrial process, energy and financial related markets with products and services ranging from industry news, analytics, forecasting, plant and project databases, as well as multimedia services.