Canadian Chemical Industry Spending Remains Strong Despite $135 Million in Canceled Projects

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Researched by Industrial Info Resources (Sugar Land, Texas)--Although the Chemical Processing Industry (CPI) of Canada is small in comparison to its southern neighbor, it has continued to show strength as a significant player in the chemical industry in recent years. At the beginning of this year, an estimated $760 million in combined capital and maintenance CPI projects were planned to begin construction in 2008, as reported in Industrial Info's North American Project Database. At the halfway point in the year, an estimated 13 projects, with a total investment value of $135 million, have been identified as canceled or placed on indefinite hold.

Click on the image at right to see a breakdown of 2008 Chemical Processing Industry Spending in Canada.

Some of the largest projects canceled or placed on hold include plans by ProLab Technologies Incorporated (CVE:PLT) (Thetford Mines, Quebec) to build a $40 million oleic acid unit at their Blake Lake, Quebec, specialty chemicals plant site. Petromont Incorporated (Varennes, Quebec) canceled plans for a seventh furnace and coke recovery unit addition for their 600 million-pound-per-year ethylene plant in Varennes. Shortly after canceling this $20 million project, Petromont announced plans to shutter the plant indefinitely. Nova Chemicals Corporation (NYSE:NCX) (Calgary, Alberta) canceled plans for expanding a polyethylene production unit located at the Joffre, Alberta, site, although the prospect of this and other expansions seems promising in the long term if additional feedstock can be acquired. Nova appears to be moving forward with plans for additional polyethylene capacity at their Mooretown and Corunna, Ontario, plants sites, which could begin construction later this summer, consisting of over $30 million in combined investments.

Some of the larger projects planned to begin construction during the last months of this year are plans by Air Products and Chemicals Incorporated (NYSE: APD) (Allentown, Pennsylvania) to install a new 1,200-ton-per-day air separation unit, replacing a much older unit that will be decommissioned at their Nanticoke, Ontario, plant site. MEGlobal Canada Incorporated (Red Deer, Alberta) has growth plans for their ethylene oxide and ethylene glycol production located in the Dow Chemical (NYSE: DOW) Red Deer plant site. Initial plans call for the installation of two or more new processing columns beginning this year with further expansions already being considered.

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