Shell to build ethane cracker plant in Beaver County - What it means for small business!

Date: June 13, 2016 Last Edit: June 14, 2016

NFIB/PA spoke with Michael Taylor, Vice President of International Affairs and Trade for SPI: The Plastics Industry Trade Association, who contributed to the content of this article.  An ethane cracker facility creates the feedstock used in plastics manufacturing. Many believe the new cracker plant will create a hub of plastics manufacturing in Southwestern PA.

If you own a small business in the construction field you should find plenty of work in Beaver County over the next few years, as Royal Dutch Shell just announced it will build a multi-billion dollar ethane cracker facility there.  It is estimated that construction will create 6,000 jobs with completion in 2019.  But, not only construction companies will ultimately benefit from this growth. 

First, you may ask, what is an ethane cracker? The plant takes ethane, a component of natural gas found in abundance in the Marcellus shale, and processes it — or cracks the molecules — into ethylene. The most common product from that process is polyethylene which used in packaging and products as diverse as hi-tech military helmets. But ethylene, put through a different chemical process is turned into polyvinylchloride or PVC, a corrosion-resistant material for modern plumbing, siding for houses, decking and many other applications in construction material supply chains. Medical device and auto parts makers also use the plastic feedstock provided by a cracker plant.

Right now real estate  companies and the value of property in the area may rise.  Once open, the Shell cracker plant will employ 4 to 6 hundred people. The company will need transportation companies to move their product to factories and the rails nearby must be kept up to date.  Tool and die shops will be needed, job recruiters, and many other vendors.

Over time, it’s believed plastics manufacturers will locate their plants close to the cracker to save on transportation costs to acquire their supply.  If a hub of manufacturers does pop up in Southwestern Pennsylvania creating thousands of new jobs, there will also be a ripple effect.  The influx of employees to the area will need all the consumer goods, restaurants and services that growth brings.

We will bring you, our members, as much as we can on opportunities for small businesses near the cracker plant as this process plays out. 

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