Chemical Producers in the U.S. Northeast Region Expect to Maintain Spending Levels in 2011

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Northeastern market region of the United States was once a significant player in the Chemical Processing Industry (CPI), with more than 550 operating plants that have since dwindled to 375 at the close of 2010. This dramatic reduction in the number of operating plants in the region changed in response to multiple influences, including cheaper feedstock and transportation logistics to end users in southern regions. Environmental regulations forced many producers to shift their operations to other regions, including overseas in some cases. CPI producers in the Northeast witnessed an increase in spending for 2010 over the prior year that was equal to nearly 28%, bringing total investments for 2010 to an estimated $145 million.

Based on active projects identified as part of Industrial Info's North American Project Database, capital and maintenance project spending in the region during 2011 is expected to be much the same, totaling nearly $150 million. A great deal of the outcome will depend on the progress for plans by Kuehne Chemical Company Incorporated (Kearny, New Jersey) to build a sodium hypochlorite facility at their plant in Kearny. Plans for this project have been in the making for several years, and current schedules show this project could begin construction during the late summer months of this year.

In a similar line of business, Bleachtech LLC (Seville, Ohio) is planning to begin construction during the second quarter of this year for the construction of a grassroot chlor-alkali plant to be located near Philadelphia, Pennsylvania. This new plant will produce both chlorine and caustic soda to serve the region market needs for bleach and acid. The demand for more regionally produced bleaches and acids has continued to climb in recent years as regulators and trade groups have pushed to reduce the amount of these products transported across the country by truck and rail.

Despite the expected success of the region to maintain spending this year, there are still several plant closures identified or planned for 2011. Adhesives Research Incorporated (Glen Rock, Pennsylvania), Dyno Nobel Incorporated (Salt Lake City, Utah), EMD Chemicals Incorporated (Gibbstown, New Jersey) and ICL Performance Products LP (Saint Louis, Missouri) are each planning to close a facility in the region this year.

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