Grassroot Chemical Processing Plant Startups Expected to Peak in June

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Researched by Industrial Info Resources (Sugar Land, Texas). The last month of the second quarter will potentially equal the strongest month for the chemical processing industry (CPI) when considering the number of grassroot plant startups. Eleven new plants have the potential to begin commercial operations this month equaling almost 23% of the total CPI plant startup activity for the entire year with an investment value estimated to exceed $200 million. Including CPI plants that have already began operations earlier this year; Industrial Info is currently tracking 48 grassroot CPI plants in the United States and Canada that plan to begin commercial operations during 2007.

The potential startups identified for this month include several large plants including PPG Industries Incorporated and its new 15 million gallons per year latex paints plant located in McCarran, Nevada. Construction for this plant began last summer and it will occupy a nearly 100,000 square foot building upon startup. BOC Group Incorporated is expecting the startup this month for a new 2,000 ton per day air separation plant located in Cartersville, Georgia. WorleyParsons Group Incorporated (Deer Park, Texas) provided engineering and construction services for this estimated $40 million project. Dynea Canada, Limited is expecting to begin operations of its long planned new formaldehyde plant located in Sexsmith, Alberta this month. Industrial Info has followed the plans for this new plant through many delays and setbacks since originally reported in February 2002.

The geography and products produced in each of these plants are very diverse covering nine different states and nine different SIC code groups. Illinois is the only state with multiple new plant startups this month with three individual plant locations. In comparing the products to be produced at the eleven new plants, two will produce industrial gases, two will offer organic chemicals and the remaining represents a mix of pigments, paint, ag chemicals and cleaning products.

No other single month this year will even come close to this level of plant startup activity. In fact the next closest month will be October of this year when six new plants are proposed to begin operations followed by September with five new plants. At this pace new plant startup activity for 2007 stands to outpace startups completed in 2006 by 20% or more depending on the number of projects that remain on schedule and avoid delays that could postpone startups until next year.

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