WV EDGE Business Report | November 2014

Published Wednesday, November 5, 2014 @ 11:17 AM by Andrew.C.King@wv.gov (Andrew King)

FOR IMMEDIATE RELEASE
November 6, 2014

CONTACT:
Chris Stadelman, 304-558-4977
Catherine Zacchi, 304-957-9340

Governor Releases November Edge Business Report

CHARLESTON, W.Va. - Gov. Earl Ray Tomblin today released the West Virginia Edge Business Report, highlighting the state’s economic progress. The November 2014 report features projects and announcements from businesses, both large and small, that play a critical role in the continued economic growth in the Mountain State.

Governor Tomblin to lead trade mission to Brazil
Gov. Earl Ray Tomblin will be traveling to Brazil with members of the West Virginia Development Office to continue ongoing discussions with executive leadership from Odebrecht and Braskem. The five-day mission, scheduled to take place Nov. 10-14, will focus on next steps associated with the potential development of Project ASCENT (Appalachian Shale Cracker Enterprise), the petrochemical complex and ethane cracker project in Wood County.

For several years, we've worked hard to make the most of the increased energy production associated with the development of the Marcellus and Utica shale," Gov. Tomblin said. "In addition to expanding this energy source, I want to make sure we use our resources here at home. As Odebrecht continues to make significant progress, I remain optimistic this opportunity will be a game changer for our economy - bringing with it thousands of construction jobs, hundreds of permanent job opportunities and countless downstream developments that will usher in a manufacturing renaissance in the Mountain State."

Since announcing the initial investment stages of Project ASCENT last November, two natural gas companies, Antero Resources and Range Resources, have signed on as the anchor and supporting ethane suppliers for the project.

The mission marks Gov. Tomblin's third international mission in three years. Gov. Tomblin previously led missions to Europe and Japan.


West Virginia’s tax climate outranks surrounding states
West Virginia’s business tax climate is ahead of surrounding states. Recent reports from the Tax Foundation, a tax research think tank based in Washington, D.C., indicate West Virginia ranks 21st in a list of states with the best tax climate in the country. Neighboring states rank as follows: Ohio 44th; Pennsylvania 34th; Kentucky 27th; and Maryland 41st. The State Business Tax Climate Index grades all 50 states based on more than 100 tax variables in the categories of corporate, individual income, sales, property and unemployment insurance taxes. West Virginia achieved a 17th ranking for corporate taxes. The report also notes the elimination of West Virginia’s business franchise tax in 2015 and the phased reduction of the corporate rate to 6.5 percent this year continue to improve West Virginia’s corporate tax ranking.


Oil and gas service opens new facility, creates 70 jobs in Harrison County
Allied Oil & Gas Services hosted a ribbon cutting ceremony to officially open its new facility in Bridgeport. Gov. Tomblin was among the dignitaries who attended the event. Allied Oil & Gas provides cementing and acidizing services to oil and gas companies. Situated on six acres, the facility includes 8,000 square feet of office space, 8,000 square feet of maintenance shop and wash bay, plus laboratory and bulk storage space. The Bridgeport operation employs approximately 70 people. Plans are already in the works to increase the workforce to 100 employees.

Job seekers interested in information on the company, job openings or required skills can call 304-626-3078 or visit www.alliedservices.com.


Chemical company to build $1.5 million facility in Brooke County
Texas-based FSTI Inc. announced plans to build a $1.5 million chemical transloading facility at the Trimodal Terminal in Follansbee. The company produces and distributes chemicals used in a range of industries, such as oilfield and water treatment. The new Follensbee operation is estimated to create 10-15 jobs in the initial months. The privately owned Trimodal Terminal is accessible by barge, highway and rail.


Energy Summit focuses on vision of West Virginia’s energy future
State lawmakers and leaders from all sectors of the industry convened Oct. 23 and 24 for Gov. Tomblin’s annual Energy Summit to talk about West Virginia's role as a national energy leader. The Summit, held at Stonewall Resort in Roanoke, West Virginia, hosted 24 speakers who each offered presentations ranging from the impacts of new EPA regulations to the futures of natural gas, coal and solar power in the state. Gov. Tomblin, Sen. Joe Manchin and Rep. Shelley Moore Capito also spoke to attendees about their vision for West Virginia’s energy future. The Summit featured a display of natural gas vehicles and a celebration to mark the 20th anniversary of the West Virginia Clean State program.


Japanese business delegation visits West Virginia
Gov. Tomblin, Senator Jay Rockefeller and Senator Joe Manchin welcomed 46 Japanese business executives to West Virginia in October. The group, from Japan’s Chubu region, visited Bridgeport during a 10-day nationwide tour aimed at learning more about the aerospace, automotive and shale gas industries. The business delegation was led by the Chubu Association of Corporate Executives (CACE), a group of senior level executives. West Virginia maintains a business development office in the Chubu region, the industrial hub of Japan.

Prior to a luncheon held at the Robert C. Byrd National Aerospace Education Center, the delegation toured the Pratt & Whitney Engine Services facility in Bridgeport. The delegation also received a briefing by Gastar Exploration on the shale gas industry in West Virginia. State officials discussed West Virginia’s favorable business climate and fiscally responsible polices, as well as the strong business relationship between the state and businesses from the Chubu region.

The event was sponsored by the West Virginia Development Office and the Discover the Real West Virginia Foundation.

Commerce Secretary Keith Burdette meet with officials of Diamond Electric

A delegation of 46 senior business executives from Japan met with West Virginia officials at the Robert C. Byrd Aerospace Education Center in Bridgeport.



First Ohio Valley Plastics Summit spotlights Marcellus and manufacturing
More than 150 experts and industry leaders gathered at the first Ohio Valley Plastics Summit, held in Vienna, West Virginia. The conference encompassed the plastics industries in the Ohio Valley region of West Virginia, Ohio and Pennsylvania. The program began with a basic overview of how resins are produced and moved into discussions of industry’s needs, including a skilled labor force and solid infrastructure, including both rail and pipelines.

One theme that emerged from the summit was understanding the full potential of opportunities present with West Virginia’s abundant Marcellus natural gas, and that in order to capitalize on these opportunities, collaborative discussions must take place.

The event was held by Polymer Alliance Zone (PAZ), the Pittsburg Area Alliance and JOBS Ohio.

Commerce Secretary Keith Burdette meet with officials of Diamond Electric

Left to Right: West Virginia Cabinet Secretary Keith Burdette, Kathy Beckett, Attorney with Steptoe & Johnson PLLC, Paul Boulier, Vice President for Business Attraction at Team Neo (Jobs Ohio)



Cato Institute awards Governor Tomblin high marks for fiscal responsibility
Gov. Tomblin ranks among the nation’s top 10 state’s governors with regards to fiscal responsibility, according to the Cato Institute’s “Fiscal Policy Report Card on America’s Governors 2014.” The report computes a fiscal policy grade for each governor based on his or her success at restraining taxes and spending since 2012.

In this year’s report, only four governors received the letter grade of “A.” Gov. Tomblin received a “B” and ranked seventh nationally for responsibly managing West Virginia’s finances. The Cato Institute’s report noted that Gov. Tomblin had “overseen the elimination of sales taxes on food and has continued to phase in reductions in business taxes enacted under his predecessor.”

The complete report is available on wvdo.org/CatoReport


Odebrecht lets contract for production technology for proposed cracker plant
Odebrecht has let a contract to Ineos Technologies Ltd. for production technology to use in ASCENT (Appalachian Shale Cracker Enterprise), the proposed petrochemical complex near Parkersburg, West Virginia. The licensing agreement is for proprietary Innovene S and Innovene G polyethylene production technologies. Ineos is a privately-owned multinational chemical company based in Switzerland.

In November 2013, Odebrecht announced it would explore the development of a new petrochemical complex in Wood County. The ASCENT complex would include an ethane cracker, three polyethylene plants and associated infrastructure for water treatment and energy co-generation.


Study credits Marcellus Shale with creation of 45,000 trade jobs
An estimated 45,000 construction trade jobs have been created in lieu of the Marcellus Shale industry, according to a new study. “Study of Construction Employment in Marcellus Shale Related Oil and Gas Industry: 2008-2014” analyzed employment data in Maryland, Virginia, Pennsylvania, Ohio and West Virginia. Based on total hours worked, the report credits natural gas exploration with the creation of 45,000 jobs in building trades such as operators, pipefitters, labor, electricians and ironworkers.

The study was commissioned by the Institute for Construction Economics Research (ICERES) at Michigan State University and conducted by the Labor Education Program at the School of Labor and Employment Relations at the University of Illinois. The full report can be viewed at http://iceres.org.



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You are receiving this from the West Virginia Department of Commerce. The former Open for Business Report was renamed West Virginia Business Edge in May 2012. Previous issues of Open for Business Report can be viewed online at wvopenforbusiness.com.



Governor Tomblin to lead trade mission to Brazil

West Virginia’s tax climate outranks surrounding states

Oil and gas service opens new facility, creates 70 jobs in Harrison County

Chemical company to build $1.5 million facility in Brooke County

Energy Summit focuses on vision of West Virginia’s energy future

Japanese business delegation visits West Virginia

First Ohio Valley Plastics Summit spotlights Marcellus and manufacturing

Cato Institute awards Governor Tomblin high marks for fiscal responsibility

Odebrecht lets contract for production technology for proposed cracker plant

Study credits Marcellus Shale with creation of 45,000 trade jobs

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