Titanium Sponge Plant Construction Competes for Crafts Talent in Utah

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Researched by Industrial Info Resources (Sugar Land, Texas)--Work on a $450 million grassroot titanium sponge plant near the Great Salt Lake in Utah is scheduled to ramp back up soon after a holiday/winter slowdown. The project, being constructed next to the U.S. Magnesium plant in North Skull Valley, Utah, is owned by ATI Titanium LLC, a subsidiary of Allegheny Technologies Incorporated (NYSE:ATI) (Pittsburgh, Pennsylvania). Construction began last spring, and the number of craftsmen reached about 100 before the slowdown. ATI Titanium is employing both union and non-union contractors on site. The number of skilled craftsmen, including electricians, welders, ironworkers, millwrights and boilermakers, required to complete construction is expected to reach close to 400 during the peak construction period this summer.

An electrical substation is currently being installed, and work has started on the administration and shipping/receiving buildings. ATI Titanium is releasing bid documents for mechanical and electrical work. Still to be built are the maintenance shop, storage building, water storage tanks, cooling tower, reverse osmosis system and wastewater treatment plant, as well as the process piping and equipment setting. ATI Titanium hopes to have the plant constructed and operational by early 2009.

The project has not had a problem finding craftsmen so far, but with peak construction season approaching this summer and the worldwide shortage in skilled craftsmen, trouble could be on the horizon, especially when one considers all of the construction projects either underway or planned to begin later this year that will be competing for the same crafts. For example, a $1.5 billion commercial rebuilding/redevelopment in nearby downtown Salt Lake City is ongoing.

There are also a large number of industrial projects underway or planned in the area. Three of the four petroleum refineries in the area will be performing maintenance turnarounds and/or major unit additions in 2008. Ultradent Products Incorporated (South Jordan, Utah) is in the midst of a $50 million expansion of its dental products manufacturing plant. Industrial Info is tracking more than 26 major industrial projects totaling almost $2 billion that are under construction in Utah. All of these projects began construction in 2007, and some will remain under construction through 2008 into 2009. In addition, since a November 2007 analysis, the amount of industrial projects scheduled to begin construction in 2008 has increased from $6.5 billion to $7 billion.

For related news, see also November 9, 2007, article - Utah Springs Forward as Leader in Industrial Project Activity Planned for 2008 in the Rockies.

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