Gulf Coast Region capital and maintenance spending for the Chemical Processing Industry (CPI) is forecasted to increase in 2007, according to research from Industrial Info Resources.
More than 174 projects worth over $2.3 billion are set to begin construction in 2007 in the coastal sections of Alabama, Florida, Louisiana, Mississippi and Texas. For 2006, $2.1 billion in CPI spending is planned for the Gulf Coast, the research showed.
“It’s encouraging to see planned project activity for the next year exceed 2006 levels at this early stage of reporting on the approaching year,” said Trey Hamlet, VP Chemicals Group for Industrial Info.
The average total investment (TIV) of each project for the region has increased to $13.2 million for 2007, up from $11.2 million in 2006, Industrial Info notes. Industrial Info is tracking 36 CPI projects that are valued at more than $15 million each, with several of those valued at $100 million or more.
According to Industrial Info, strong petrochemical, olefin, plastic and resin demand adds strength to the region because that area produces the largest percentage of them in the U.S. However, ethylene, while produced almost solely in that area, has had only a small amount of new capital added recently.