Chemical Industry Plant Closures Begins Easing

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Researched by Industrial Info Resources (Sugar Land, Texas)--As we near the end of a year that was filled with uncertainty, the Chemical Processing Industry (CPI) of the United States and Canada has done a lot to maintain profitability through numerous closures and restructuring efforts. An estimated 76 chemical plants already have closed their doors permanently this year, and another 11 are planned to be closed by the end of the year. In the last four years, the CPI has averaged more than 83 closures a year, with 2008 being the worst year with 94 plant closures.

Many regions have been affected by these closures, and one of the hardest hit is the Great Lakes, which lost 16 plants and 1,353 employees this year. One of the most notable closures in the Great Lakes is the Lamination Film production plant in Addison, Illinois, owned by GBC Film Products LLC (Lincolnshire, Illinois) which lost 215 employees. The Chemical Industry in the Great Lakes was largely affected by the automotive industry collapse. The next hardest-hit region is Ontario, where nine plants closed this year, totaling 1,350 in jobs lost. Of the nine plants closed in Ontario, The Dow Chemical Company (NYSE:DOW) (Midland, Michigan) saw the largest closure in this area, with their 550-employee polyethylene resins plant shut down in Sarnia, Ontario.

Considering the large amount of consolidation in the industry during the past few years, there is optimism that operating rates will begin to improve in 2010 and help to curb any substantial amount of plant closures next year. Industrial Info is currently tracking only five plant closures identified for next year.

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Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy related markets. For more than 26 years, Industrial Info has provided plant and project opportunity databases, market forecasts, high resolution maps, and daily industry news.