Twelve Grassroot Chemical Plants Plan for Start-Up During the Third Quarter of 2005

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). The second half of the year kicks off with a dozen new chemical plant startups in North America, preparing to begin commercial operations in the next three months. Grassroot chemical plant construction has remained strong over the last three years, with an average of 33 new chemical plants coming online each year across North America. Industrialinfo.com reported 41 new chemical plants in 2002, 26 new plants in 2003, and 32 new plants in 2004.

Ten new plants have already begun operations this year, and with the addition of twelve new plants the third quarter should outperform the entire first six months. Most of the new plants are already nearing mechanical completion, and at least five are in a validation and startup mode, with plans to begin commercial operations in July. The remainder should begin operations in August and September.

Click the image at right to view a table summarizing these new plants including company name, TIV and more...

At nearly $100 million, BOC Group's new hydrogen plant in Toledo, Ohio, represents the largest grassroot plant investment for the quarter. This new plant will produce an estimated fifty million standard cubic feet per day of hydrogen, for use in two area petroleum refineries. At nearly $65 million, Sigma-Aldrich's new plant site in Milwaukee, Wisconsin, follows as the second largest investment for the quarter. This project is the result of a major consolidation of an area plant that has been relocated. Huntsman Corporation's new $20 million research and development complex in The Woodlands, Texas, is also the result of a major consolidation effort. This new facility will be home to four research and development operations that are closing across the United States this summer.

The total investment value (TIV) to construct these twelve new plants equals an estimated $280.5 million, which should create over 1,500 new job opportunities. Huntsman's plant is the only new plant in Texas from this group. The majority of the new sites will be in the Midwest, Great Lakes, and Northeast market regions. These same regions were well represented during the first half of the year, when only one plant started up in California.

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