Chemical Producers to Start Some Delayed U.S., Canadian Maintenance Projects in Third Quarter

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Researched by Industrial Info Resources (Sugar Land, Texas)--As COVID-19 cases across the U.S. climb and businesses struggle with whether to reopen, many chemical producers are enjoying "essential business" status. Nonetheless, many are just now nearing maintenance-related project starts that had been set to kick off months ago. Industrial Info is tracking about 60 maintenance-related projects in the U.S. and Canadian Chemical Processing Industry that have been delayed or otherwise affected by COVID-19 precautions, but are set to begin before the end of September; more than 70% of the spending is attributed to petrochemical and plastic/rubber projects.

Click here for a full list of COVID-affected maintenance projects in the U.S. and Canadian Chemical Processing Industry that are set to kick off in third-quarter 2020.

Click on the image at right for a graph detailing relevant projects by industry sector.

Western Canada accounts for more turnaround kickoffs than any other state or province. Methanex Corporation (NASDAQ:MEOH) (Vancouver, Canada), the world's largest producer and supplier of methanol, postponed a turnaround at its methanol-production plant in Medicine Hat, Alberta, which produces 600,000 metric tons per year, from May to August. John Floren, the chief executive officer of Methanex, said in a recent conference call that "our operations and global supply chain are running effectively and have not been significantly impacted by COVID-19," but added that global methanol demand in the first quarter fell about 7% when compared with fourth-quarter 2019, due to the pandemic and low commodity prices. For more information, see Industrial Info's project report.

U.S.-based General Dynamics Corporation (NYSE:GD) (Reston, Virginia) also pushed back one of its Canadian projects from May to August: a turnaround at an explosive-material production plant in Salaberry-De-Valleyfield, Quebec. The company says the facility offers "tailored applications for all weapons caliber ranging from infantry weapon to heavy artillery." For more information, see Industrial Info's project report.

The U.S. Gulf Coast region accounts for most of the spending attributed to third-quarter maintenance projects at chemical-production facilities. Formosa Plastics Corporation USA (Livingston, New Jersey), a subsidiary of Taiwanese conglomerate Formosa Plastics Group, pushed back a turnaround on ethylene oxide and ethylene glycol units at its plastics facility in Point Comfort, Texas, from May to September; the unit produces 660 million pounds per year of ethylene glycol. For more information, see Industrial Info's project report.

In Louisiana, CF Industries Holdings Incorporated (NYSE:CF) (Deerfield, Illinois) is preparing to begin a turnaround on a urea unit at its nitrogen complex in Donaldsonville. Work on the unit, which produces 2.4 million tons per year of urea, had been slated to begin last month. Westlake Chemical Corporation (NYSE:WLK) (Houston, Texas) had planned to begin a turnaround on the Plant K line at its polyethylene resins facility in Sulphur in April, but now is expecting to begin work in September. For more information, see Industrial Info's reports on the Donaldsonville and Sulphur projects.

Outside the petrochemical and plastic/rubber sectors, The Mosaic Company (NYSE:MOS) (Plymouth, Minnesota) delayed a turnaround on its Phosphoric Acid East Unit at its New Wales Fertilizer facility in Mulberry, Florida, from April to August. Itafos (George Town, Cayman Islands), a subsidiary of Prudential Financial Incorporated (NYSE:PRU) (Newark, New Jersey), pushed back a turnaround on a sulfuric acid unit at its Conda Phosphate plant in Soda Springs, Idaho, from June to September. For more information, see Industrial Info's reports on the Mulberry and Soda Springs projects.

Other projects have not been so lucky. AdvanSix Incorporated (NYSE:ASIX) (Parsippany, New Jersey), a leading manufacturer of the polymer resin Nylon 6, was designated an "essential business" by authorities, but still canceled a turnaround on a sulfuric acid area at its ammonia and caprolactam plant in Hopewell, Virginia. The project, intended to perform inspections and repairs to the 390,000-metric-ton-per-year unit, had been slated for May. For more information, see Industrial Info's project report.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info'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. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at https://www.industrialinfo.com.