Over $900 Million in CPI Projects Expected to Begin Construction in Germany in 2007

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Researched by Industrial Info Resources (Sugar Land, Texas). So far in 2006, Industrial Info has identified seven Chemical Processing Industry (CPI) projects expected to begin construction in Germany during 2007. These projects combined total approximately $910 million worth of investment dollars that will be poured into existing German production sites. Of the seven, three are unit expansions while the remaining four are unit additions. Most of the projects fall under the plastic resins category and two projects are an ethylene and a butyl acrylate expansion.

BASF AG (Ludwigshafen, Germany) is planning to begin an expansion of its butyl acrylate unit in Ludwigshafen. The project is estimated at approximately $25 million and should begin construction in the first couple of months of 2007. Butyl acrylate is utilized in adhesives manufacturing and coatings.

Basell NV (Hoofddorp, the Netherlands) is planning two projects in Germany for construction next year. At the existing Wesseling site, a polyethylene swing unit with a production capacity of 100,000 tons a year will be built. The unit will be fitted with Basell’s Spherilene S process technology and will produce both high-density and low-density polyethylene, once complete in the first half of 2008. At the Munchsmunster site, s new high-density polyethylene unit will be constructed in 2007 and operational before the second quarter of 2009. This unit will utilize Basell’s Hostalen Advanced Cascade process technology and will produce approximately 120,000 tons a year. The investment for both units combined is estimated at $125 million.

INEOS Koln GmbH (Koln, Germany) has selected Linde AG (Munich, Germany) to serve as the engineer for its 100,000-ton a year capacity expansion at its existing site in Koln. Currently, ethylene production capacity is 1.1 million tons a year from two units. INEOS will spend close to $50 million on the expansion, which includes installing a new swing furnace as one of the measures for the increased capacity.

SABIC EuroPetrochemicals (Sittard, the Netherlands) awarded the E+P+C (engineering, planning and construction) contract to Uhde GmbH (Dortmund, Germany) for a polyethylene unit addition at Gelsenkirchen. Using Basell’s Hostalen process technology, the unit will produce 250,000 tons a year of bimodal high-density polyethylene when complete in the fourth quarter of 2008. Total investment for this unit addition is calculated to be $255 million.

In Burghausen, Wacker-Chemie GmbH (Munich, Germany) will invest $375 million in a polysilicone unit expansion. The initial plans call for more than doubling the existing 3,500 tons year that are currently produced by adding an additional 4,500 tons a year to the total production. Wacker is also currently involved in planning expansions and unit additions in China.

Degussa AG (Frankfurt, Germany) has teamed up with SolarWorld AG (Freiberg, Germany) in a joint venture to construct an 850-ton a year polysilicone unit addition. The unit will be constructed at Degussa’s Rheinfelden site and will cost approximately $80 million worth of capital investment. The unit will be operational in the second half of 2008.

With another quarter left to go in 2006, Industrial Info expects more projects to be reported in Germany. It is highly likely that Germany will bust the one billion dollar mark for investments planned in the Chemical Processing Industry to start construction in 2007. Be sure to keep watch for the release of Industrial Info’s Outlook 2007, a global forecast of capital investment broken down by industries and regions.

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Industrial Info Resources (IIR) is a Marketing Information Service company that has been doing business for over 23 years. IIR is respected as the leader in providing comprehensive market intelligence pertaining to the industrial processing, heavy manufacturing, and energy-related industries throughout the world.