Diversified economy–Energy, chemicals, value-added metals, transportation logistics, and health care:
The industry clusters of energy/shale, value-added metals, chemicals, warehouse/distribution/transportation logistics, and health care have grown organically and attracted new investments. Highlights include:
- Energy/Shale: Ergon (209 FTE), Eagle Manufacturing (200 FTE), Centerpointe Terminal, Marsh Bellofram (347-475 FTE), Bidell (130 FTE), Fiorentini (41 FTE)
- Value-added Metals: Wheeling-Nisshin (185 FTE), Precoat Metals (77 FTE), ArcelorMittal, Jupiter Aluminum, Coil Slitting International (40 FTE), Bulldog Rack (40 FTE), Crown Cork & Seal (100 FTE), NEO Industries (115 FTE), Chrome Deposit Corporation (30 FTE), Maple Manufacturing Company (30 FTE)
- Transportation Logistics: Rue21, Starvaggi Port, American Muscle Docks, Campbell Transportation, Feroleto Steel (24 FTE)
- Healthcare: Weirton Medical Center (1,600 FTE)
- Chemicals/Ceramics: Koppers (47 FTE), Mountain State Carbon (265 FTE), FSTI, Metsch Refractories (80 FTE), Homer Laughlin China, & Sal Chemical (39 FTE)
Strong record of private investment: $50 million of private investment, annually, since 2010.
Major Regional Investments
Royal Dutch Shell announced in June 2016 it will build their $8.7 billion ethane cracker in Monaca, PA.
The first major ethane cracker to be built outside the Gulf Coast in 20 years will employ 600 people when it’s up and running in the next decade and as many as 6,000 during construction, which the company said will begin within 18 months. It will convert the plentiful ethane liquid produced by many of the region’s Marcellus and Utica shale wells to the building blocks of common plastic products. There are no more pioneers in the chemical and power plant fields. One of the top three energy companies in the world just reduced the risk for all other plants.
PTT Global Chemical announced in August 2015 the construction of a $5.7 billion ethane cracker in Dilles Bottom (Belmont County), OH.
PTT Global Chemical PCL conducts its business in the Petrochemical and Chemical Sectors. It was ranked in the Top 10 of the Dow Jones Sustainability Indices (DJSI) for the second consecutive year and was ranked twenty-second among world-leading petrochemical companies on the ICIS Top 100 Chemical Companies listing. The company has seven main business lines and currently has the production capacity of chemical and petrochemical products of 8.8 million ton/year and the refinery capacity of crude oil and condensates of 280,000 Bbl/Day. In addition, it places high value on making investment to expand to specialties chemical products and green chemicals.
Marathon is planning a $2 billion alkylation plant in the tristate area, near their plant in Jewell, OH, in 2016.
One of the things that made the Marcellus shale so exciting for producers at the beginning of the Marcellus boom was that it was rich in natural gas liquids, including ethane, pentane, propane, and butane. The latter can be refined into alkylate, an octane booster. It is “key for cleaner burning gasoline”. So, changing butane to alkylate will help alleviate some of the environmental issues with burning hydrocarbons. It won’t end it, of course, because hydrocarbons are still being burnt, but it will help. MarkWest is a big player in the so-called midstream part of the energy industry, processing about 75 percent of the rich gas coming from the Marcellus and Utica shales. It’s based in Denver but has major facilities in Chartiers Township, Ellwood City, Butler County, and elsewhere in the shale regions of West Virginia and Ohio. MPLX (NYSE: MPLX) is the pipeline division of Findlay, Ohio-based Marathon Petroleum.
Southwestern Energy Corp. purchased Chesapeake Energy Corp. assets for $5.4 billion in 2015.
They are deploying 4-6 rigs in 2015 and 11 rigs by 2017. This will add 256 operated and producing horizontal wells and 179 non-operated horizontal wells. $101 million expansion at Ergon in past three years. $23 million improvements, announced in 2016, are to use more Marcellus shale condensate instead of crude (conversion from feedstock requires different equipment. In 2012, Ergon expanded its subsidiary refining facility which enabled the refinery to handle growing regional crude oil production as drilling activities continue to increase throughout the Marcellus and Utica Shale areas. This investment of $78 million added capacity in its refinery processing units and supporting infrastructure.
Multiple natural gas-fired power plants are being planned in West Virginia and Ohio.
The planned investments, over three plants, approach $1.8 billion, 600 permanent jobs, and 7,500 construction jobs.
National Unemployment Rates
West Virginia Unemployment Rates
County Unemployment Rates
KEYS TO GROWTH:
- $50 million in private investment since 2010.
- In 2016, Brooke and Hancock County realized 16% growth in construction jobs.
- In 2015, Brooke and Hancock County lead the USA with a 50% growth in construction jobs.
- Over $50 billion of construction projects coming to our region from large multi-national energy companies.
- Construction jobs will remain tremendous opportunities for trades.
- Longer-term employment options will be present.
Hancock County Unemployment Rates
Sustained construction activity:
16% increase in 2016
- Weirton-Steubenville 3rd in nation in construction growth: Consecutive years tri-county area ranks among highest in nation in increase in construction jobs. See more at: http://www.bizjournals.com/pittsburgh/news/2016/12/27/local-construction-jobs-jumped-in-nearby-metro.html
- The Associated General Contractors report found a gain of 16 percent — 300 jobs — between November 2015 and November 2016 in the Weirton-Steubenville Metropolitan Area. The percentage increase from 1.900 to 2,200 employed was less than only three other markets, all in the West: Boise City, Idaho; El Centro, Calif.; and Albany, Ore.
- The Weirton-Steubenville Metropolitan Area consists of Brooke and Hancock counties in the Northern Panhandle of West Virginia and Jefferson County in Ohio.
50% increase in 2015
- Construction employment increased in 190 out of 358 metro areas, was unchanged in 64 and declined in 104 between November 2014 and November 2015, per a new analysis of federal employment data released today by the Associated General Contractors of America.
- The largest percentage gains occurred in Weirton-Steubenville, W.Va.-Ohio (50 %, 800 jobs); Boise, Idaho (19%, 3,300 jobs); Coeur d’Alene (18%, 700 jobs) and Huntsville, Ala. (18%, 1,400 jobs). – See more at: https://www.agc.org/news/2015/12/29/construction-employment-increases-190-out-358-metro-areas-between-november-2014-and#sthash.CplX2AUz.dpuf
West Virginia Development Office
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The Claude Worthington Benedum Foundation
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The Northern West Virginia Brownfield Assistance Center
The West Virginia Brownfields Assistance Centers were created in 2005 by the West Virginia Legislature to empower communities to plan and implement brownfields redevelopment projects. The two Centers promote economic development and environmental and public health protection through innovative redevelopment of brownfield sites. The Centers also promote and coordinate the development of brownfield property by providing training and technical assistance, facilitating site preparation efforts, engaging community involvement, as well as by helping communities with grant writing and leveraging project funding.
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