Chemical Plant Maintenance Turnaround Activity Continues to Rise

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Researched by Industrial Info Resources (Sugar Land, Texas)--Operating rates for chemical plants across the United States and Canada have continued to rise this year, and with it maintenance turnaround activity has increased as well. So far this year, planned chemical plant maintenance turnaround activity is expected to increase approximately 11.5% compared to last year. This brings the total number of turnarounds in 2011 to an estimated 608, compared to only 538 in 2010. Although the activity has increased sharply this year, the total investment value (TIV) for these turnarounds is expected to remain relatively flat at nearly $1.4 billion for both years. Maintaining this level of spending means the industry has successfully improved for a second year over the depressed years of 2008 and 2009.

Turnaround activity planned during the second half of 2011 makes up roughly half of the total spending and activity for the year, at 301 planned turnarounds costing an estimated $681 million. Some of the largest individual turnarounds are planned by ExxonMobil Chemical Company (Houston, Texas), The Dow Chemical Company (NYSE:DOW) (Midland, Michigan) and Shell Chemical Company (Houston). Collectively, these three companies have 12 turnarounds worth $115 million planned for the second half of 2011. The largest of these turnarounds will take place at two Dow Chemical plants and an ExxonMobil plant in Louisiana, and Shell's chemical complex in Deer Park, Texas.

The Southwest market region will play its traditional role of being the largest contributor to planned maintenance activity, making up more than one-third of the total with 236 planned turnarounds in 2011. This region is home to 145 petrochemical plants, more than any other region of the country, and these types of plants typically plan a greater number of maintenance turnarounds because of the technology and chemistry requirements of the petrochemicals sector. Chemical plant owners in the Great Lakes and Southeast market regions will each contribute more than $100 million in maintenance turnarounds this year. Despite being home to only 339 chemical plants, the Mid-Atlantic region will also come very close to this level of spending with $98 million in planned maintenance turnarounds, keeping pace with improvements it gained last year.

The improvements in maintenance activity, combined with the improvements witnessed in capital spending (see related August 3, 2011, article - Gulf Coast Chemical Plant Owners Lead U.S. in Expansions and Additions) continue to provide the momentum of a much stronger year for the Chemical Processing Industry.

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