Industrial Spending in West Virginia Shifts Heavy on Power and Metals & Minerals Industries

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Researched by Industrial Info Resources (Sugar Land, Texas). Right now, there are 137 active industrial projects in West Virginia with scheduled construction starts in 2006 or beyond. These projects total $6.5 billion. While the number of projects has increased from 122 projects in 2005 to 137 projects in 2006, the TIV for planned future industrial projects in the state has reduced by 7%. For details see related May 17, 2005 news article - http://www.industrialinfo.com/showNews.jsp?newsitemID=62123 Planned Industrial Project Spending for West Virginia Sits Close to $7 Billion.

Industrial project spending in West Virginia is dominated by the Power Industry, which represents 73% of the spending with 46 projects totaling $4.8 billion. This is actually $1.2 billion less than in 2005.

Click on the image at right to view a chart showing the breakdown of spending by industry in West Virginia.

The Metals & Minerals Industry has experienced a doubling of project activity in West Virginia, now accounting for 20% of the project activity. Over the past year, Metals & Minerals Industry projects have increased from eleven in 2005 to 22 projects in 2006, totaling $1.3 billion. This increase can be attributed to a number of large-scale, grassroot coal mining projects being planned by companies like International Coal Group Incorporated (Ashland, Kentucky), Alliance Resource Partners LP (Tulsa, Oklahoma), and CONSOL Energy Incorporated (Pittsburgh, Pennsylvania). There is also a major cement plant expansion and new gypsum wallboard manufacturing plant planned.

One of the major projects currently under construction in the state is a new coal mine being built by Arch Coal (Saint Louis, Missouri). This grassroot Mountain Laurel Coal Complex project actually began construction in 2005, so it is represented in the 2005 numbers. Since initially reported by Industrial Info in 2004, the scope of the project was expanded to incorporate a surface mine in addition to the underground mine, and the total cost of the project has increased from $190 million up to $300 million. Full production of 10 million tons per year at the mine is expected in 2008.

The most recent new plant to begin construction in West Virginia this year is BPB America's new $125 million synthetic gypsum manufacturing plant in Proctor, West Virginia, which is wrapping up site preparation activity and preparing for building erection.

After Power and Metals & Minerals, the majority of the remaining 7% of planned future project spending will fall into the Industrial Manufacturing, Oil & Gas Transmission, and Chemical Processing Industries.

Industrial Info Resources (IIR) is a Marketing Information Service company that has been doing business for over 23 years. IIR is respected as the leader in providing comprehensive market intelligence pertaining to the industrial processing, heavy manufacturing, and energy-related industries throughout the world.