ATOFINA to Scale Back Expansion Plans in Quebec

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). ATOFINA Canada, Incorporated (Oakville, Ontario) plans an expansion to increase hydrogen peroxide capacity at its Becancour, Quebec plant (Plant 1025378) by 40,000 metric tons per year in several phases beginning until 2005. The first phase will increase capacity by 15,000 metric tons per year from its current 70,000 metric tons per year (PEC 60001221).

Originally ATOFINA had planned to increase the overall site capacity to 110,000 metric tons per year by 2005. Due to poor economics and the rising cost of energy, the remaining 25,000 metric tons of capacity will not be added until market and economic conditions improve.

ATOFINA is the third largest producer of hydrogen peroxide in the world and produces approximately 341,000 metric tons per year in Europe, North America and Asia. The estimated worldwide demand of hydrogen peroxide is 2.2 million metric tons with an average yearly growth of 3 to 5%. The product is primarily used in pulp bleaching, the chemical industry and textile bleaching.

The Becancour, Quebec location of ATOFINA started operations in 1986 as Oxychem Canada, Incorporated and in 1998 Elf Atochem North America, Incorporated gained full ownership of the plant. The Canadian headquarters is located in Oakville, Ontario and the headquarters for the United States is located in Philadelphia, Pennsylvania. ATOFINA and Elf Atochem are both subsidiaries of TotalFinaElf with headquarters located in Paris France.