A study by Robert Morris University has found that the Shell petrochemical facility in Beaver County will inject nearly $3.7 billion into the state’s economy.
The facility, on which construction started in 2014, will convert ethane into ethylene and ultimately polyethylene for use in manufacturing. While the facility will only employ about 600 workers once it’s operational, it has employed as many as 8,000 workers at the peak of its construction.
Using economic impact software, researchers forecasted the plant’s total economic activity for the state over its estimated 40-year lifespan. Among the benefits, the study found that the complex would produce $260 million to $846 million in economic activity in Beaver County (including wages, benefits, and related spending). Additionally, the plant would have a $3.3 billion economic impact on the surrounding 10-county region and would mean an additional $23 million per year in state income tax.
Over the plant’s life, the study estimated the ethane cracker would produce $81.7 billion and an additional $515.4 million in income tax for the state.
The RMU analysis was performed by Steve Clinton, professor of marketing; Marcel Minutolo, professor of strategic management; and Brian O’Roark, university professor of economics. The study follows the university’s analysis of what economic impact the state, region, and county would see from the facility’s construction.
“That is money that Pennsylvania wouldn’t have had otherwise that policymakers can use for social programs or other benefits to the public good,” said Minutolo.