AdvanSix, Parsippany, N.J., recently told the Economic Development Authority of the City of Hopewell, Va., that it will be investing in growth and optimization initiatives at its Hopewell facility. In connection with the company’s continued investment and recent job creation at the facility, the City of Hopewell and its Economic Development Authority have granted certain property tax incentives to the company.
“AdvanSix is committed to long-term, proactive citizenship in our communities,” said Fred Harry, Hopewell Plant Manager. “Since 2016 when AdvanSix was formed, we have created nearly 100 new technical and operations jobs at our Hopewell site. Our team is also excited about the robust pipeline of growth projects and investments at Hopewell that will increase efficiency and output at our facility, optimize quality for our customers and help us provide ongoing opportunity for local employees and partners.”
One major project at Hopewell has been converting coal boilers to natural gas boilers. The company said its operations rely heavily on steam, and this move should significantly reduce energy costs at the site.
Another is a caprolactam quality project, with the company investing in equipment and debottlenecking, expecting about a 2 percent increase in capacity. That project is expected to be completed by the end of 2019, with full-year benefits in 2020.
AdvanSix said the boiler and caprolactam projects should cost about $55-$60 million, with an internal rate of return of 20 percent. Since 2016, the company said it developed a company-wide pipeline of efficiency projects in the range of $150-$200 million that have had similar returns.
For 2019, the company is projecting capital expenditures of $140-$150 million, up from 2018’s $109 million. Much of that increase is for turnarounds, with maintenance up $20 million due to the scope and timing of planned plant turnarounds. The pre-tax income impact of third-quarter turnarounds is $5 million, with fourth-quarter at $25-$30 million.
“This significant investment and increased jobs are huge for our community,” said Hopewell’s Assistant City Manager Charles Dane. “AdvanSix and its employees have been active members in the Hopewell community for decades, giving back through participation in a wide range of organizations. This project helps sustain a continued presence in Hopewell of this great corporate citizen. We look forward to the many benefits of this agreement for our local community.”
“This is an exciting win for the City of Hopewell and the Gateway Region. It is a true testament to Hopewell’s ability to attract and retain high caliber companies,” said Keith Boswell, President and CEO of Virginia’s Gateway Region. “Manufacturing, and specifically chemical manufacturing, is the heart of the region’s industry sector. Virginia’s Gateway Region is proud to have AdvanSix on its corporate roster, and we look forward to their many years of continued growth.”
More than 750 people currently work at AdvanSix’s Hopewell facility, which has been operating since the 1920s. The facility is one of the world’s largest single-site producers of caprolactam and ammonium sulfate. Caprolactam is the building block for Nylon 6 resin, which is used in carpets, automotive components, food and industrial packaging, and other products.