Chemical Catalyst Producers Expect a Modest Increase in Total Spending During 2011

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Operating rates across the Chemical Processing Industry (CPI) are expected to increase during 2011, bringing relief to many segments of the industry. When operating rates and run times increase, so does the demand for chemical catalysts, as the lives of these products become shorter as plant operations run longer. An increase in operating rates also will increase the number of planned maintenance turnarounds this year, providing more opportunity for catalyst replacements, including services for catalyst renewal and screening.

Catalyst producers across the U.S. and Canada have witnessed annual capital and maintenance investments fall from annual highs averaging $200 million in the last decade to nearly $80 million in 2009. An improvement across the CPI that became noticeable by mid-year 2010 helped lead spending back to a total of more than $120 million last year for catalyst producers. The momentum gained in 2010 has set the stage for a projected increase in total spending this year, which is estimated to reach or exceed $140 million. This very niche segment of the CPI represents approximately 50 plant sites and a very small portion of the chemical plants currently in operation across the U.S. and Canada. The very small size of this niche industry segment helps it to realize gains from market improvements much quicker than traditional segments of the industry.

BASF Catalysts LLC (Iselin, New Jersey) is considering the addition of a new furnace at its industrial catalyst plant in Seneca, South Carolina, later this year. BASF has considered this project for a couple of years, and current plans indicate this project could include either a new electric arc furnace or plasma arc furnace, with installation planned by the end of the year. Plans for the expansion of a catalyst plant owned by Zeolyst International (Kansas City, Kansas) appear to be progressing well. This estimated $20 million expansion project is part of a two-phase expansion plan for the site that includes the addition of a new autoclave building. The first phase, a new calciner unit with an estimated price tag of $30 million, began construction in late 2010 and is supposed to be completed during the fourth quarter of 2011.

The focus of many catalyst producers remains the production catalysts that can endure longer run-cycles, cost less to regenerate or dispose, and can be incorporated into existing processes and technologies. As the CPI continues to recover, the outlook for this segment of the industry will improve quickly.

View Plant Profile - 1508705 1085136
View Project Report - 16001887 300016029 300017474

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.