Wacker Chemie AG has released its first quarter report and Bradley County looks to be profiting from the location of its new facility better than originally expected.
According to the report, Wacker had assumed the total project costs would amount to $2.2 billion.
The report expects a higher than originally estimated investment in constructing the facility.
It says the company’s total capital expenditures are 26 percent lower than last year. It adds the focus remains “on completing the [Charleston] Tennessee site.”
“To ensure the Charleston site can be on schedule for the latter half of 2015, remaining subcontracting jobs are currently being awarded,” the report states.
“As the chemical industry will be initiating a series of large-scale projects to take advantage of the shale-gas boom in the USA, the resulting competitive situation may cause the cost of materials and assembly to be higher than originally planned,” the report states. On the basis of the bids received, we now consider it possible that the total investment volume will range from $2.3 billion to $2.4 billion.”
The report also says Wacker sees “an opportunity to achieve higher output than initially expected from the enhanced Charleston plant through further improvements to production processes.”
Gary Farlow, president of the Cleveland/Bradley Chamber of Commerce, says this announcement is a positive one for the county.
“This is once again good news for Bradley County,” Farlow said. “Wacker is acting to increase its investment before they even open the plant. We knew they were on track to open, but this shows a tremendous commitment beyond what we had anticipated and have seen. We couldn’t be happier.”