Chemical Processing Industry Expects Strong Start in New Year

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Researched by Industrial Info Resources (Sugar Land, Texas)--The first three months of 2008 are set to be among the biggest of the year for the Chemical Processing Industry (CPI) based on project spending identified in North America. Currently, Industrial Info is tracking more than 150 capital and maintenance CPI projects as part of its North American Project Database that are planned to begin construction during the first quarter of 2008 valued at an estimated $2.2 billion. This is a tremendous increase over the first quarter of 2007 when about $1.6 billion was originally planned to begin construction, of which less than $400 million was canceled or placed on hold.

Click on the image for a 2008 analysis of project spending for the North American Chemical Processing Industry.

The new year will begin with a recently announced major expansion by E. I. du Pont de Nemours and Company (DuPont) (Wilmington, Delaware) of its Moncks Corner, South Carolina, Charleston fibers plant. This nearly $500 million project investment will expand DuPont's production capacity of Kevlar by an estimated 25%. Civil construction will get underway almost immediately, and the selected E&C firm is already securing long-lead equipment.

DuPont's Kevlar project catapults South Carolina to the top of the list when comparing total first quarter CPI spending by state. Next in line as the two biggest contributors toward first-quarter spending are Texas and Louisiana. These two states comfortably lead the pack with $485 million and $420 million, respectively, identified for the first quarter. OxyVinyls LP (Houston, Texas) will contribute Texas' largest project in the quarter with a planned $120 million modernization of its Pasadena, Texas, polyvinyl chloride (PVC) plant. This project is expected to include technology improvements and process retrofits plant-wide and be complete by early 2009. In Louisiana, a very sizeable unit addition is expected to begin construction during the first quarter planned by Criterion Catalyst & Technologies LP (Houston, Texas) in Port Allen, Louisiana. For more information, view related November 29, 2007, article - Chemical Catalyst Producers Continue to Enjoy Strong Demand and Invest in the Future.

The continued increase in demand of hydrogen for use in petroleum refineries on the West Coast will aid California in starting the new year with at least one major project, as well. Air Liquide Industrial US LP (Houston) is expected to begin construction on a hydrogen plant on the site of ConocoPhillips' Rodeo, California, refinery. The demand for hydrogen used in the process of producing low-sulfur transportation fuels has provided a much needed boost to California in recent years as the size of the state's chemical industry has been greatly reduced because of environmental pressures over the past decade.

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Industrial Info Resources (IIR) is the leading marketing information services company for the industrial process, heavy manufacturing and energy-related markets throughout the world. For more than 24 years, IIR has provided accurate and timely intelligence through products such as plant and project information databases, focused market databases, industry forecasting, key industry contacts, industry and territorial map products, direct marketing services and applications, and daily industry news.