Agricultural Chemical, Fertilizer Producers Continue Investment Trend into 2008

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Producers of all types of fertilizers and ag chemicals are continuing to experience strong demand from end markets and continuing the trend of increased capital and maintenance investments in the United States and Canada. This increase in demand is a result in part to the large amount of ethanol capacity brought online over the past two years and the development of bio-diesel, both requiring large amounts of corn, soy beans and other farmed crops as feedstock. Despite the apparent pullback in future planned ethanol capacity, the current level of installed ethanol capacity has supplied the industry with a sharp increase in demand for corn and is having a direct impact on farm plantings.

Industrial Info has identified nearly $370 million in planned capital and maintenance project activity identified in this market segment for 2008 as part of its North American Project Database. This is an increase over activity in this segment reported for 2007, which topped out at $271 million. Among the leaders of this investment trend during 2008 will be PCS Phosphate Company Incorporated (Northbrook, Illinois) and an estimated $50 million upgrade of its phosphoric acid plant in Aurora, North Carolina. The second-largest project for this year is Dyno Nobel Incorporated's (Sydney, Australia) and a nearly $30 million Phase II expansion of ammonium nitrate capacity at its Cheyenne, Wyoming, plant.

The increase in fertilizers has put an equally impressive demand on producers of pesticides and herbicides. The demand for higher yields and increased plantings isn't the only demand on this group of producers. Farmers are requiring better and more sophisticated products for crop protection and insect control to increase the yield from existing acreage. Although a small portion of the total spending in this industry segment, a significant amount of capital will be spent this year to increase capacity of these chemicals. BASF Corporation (Florham Park, New Jersey) is planning for a nearly $20 million retrofit of its insecticide manufacturing plant in Palmyra, Missouri, that could begin construction late this year.

More than $100 million of the spending in this industry segment during 2008 will be for planned maintenance turnarounds. This is up sharply, by more than $20 million, compared with what was identified for 2007. Most of these plants operate in a highly corrosive environment and often require inspections and repair or even a major rebuild annually in many cases. This maintenance turnaround spending for 2008 will take place at nearly 50 unique plant sites.

View Plant Profile - 1508920 1015898 1012836
View Project Report - 15002516 45000706 28001617

Industrial Info Resources (IIR) is the leading marketing information services company for the industrial process, heavy manufacturing and energy-related markets throughout the world. Celebrating its 25th anniversary, IIR provides accurate and timely intelligence featuring plant and project information databases, focused market databases, industry forecasting, key industry contacts, industry and territorial map products, direct marketing services and applications, and daily industry news.