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Released February 28, 2013 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--During the past year, manufacturers began looking at options to strongly increase phosphoric or nitrogenous fertilizer capacity in the U.S. Interest does not seem to be slowing, due to continuing low natural gas prices, ongoing drought conditions, and U.S. farming subsides that promote the planting of crops. Industrial Info is currently tracking 55 fertilizer capital projects with a total investment value of $15.3 billion in the U.S. and Canada.
As expected, the Southwest region of the U.S. has the most fertilizer projects in North America's Chemical Processing Industry (CPI), with 14 valued at $3.4 billion. Most of the investment in this region can be attributed to CF Industries' (NYSE:CF) (Deerfield, Illinois) expansion of its plant in Donaldsonville, Louisiana. The planned $2.1 billion expansion consists of four new units to increase plant capacity by 3,600 metric tons per day of ammonia, 3,850 metric tons per day of urea, 5,000 metric tons per day of UAN, and 1,600 metric tons per day of nitric acid. Construction is expected to begin in the second half of 2013 on several of the units, with full operation scheduled for the beginning of 2016.
Closely following the Southwest is the Midwest region. This region is traditionally home to a large percentage of the nation's farm planting, which drives demand for fertilizers. In the past couple of years, the total number of CPI plants has not increased drastically in the region--they now number 190--but potential investments have. The region currently has the largest planned investment in the U.S. fertilizer sector, with 11 projects at $5.6 billion. With a small number of projects with high total investments, the average spending per project stands at $500 million due to the large amount of grassroot fertilizer plants and unit additions.
One of the major projects in the Midwest region is a $1.5 billion grassroot plant being planned by OCI (UK) Limited, a subsidiary of Orascom Construction Industries (Cairo, Egypt), which uses the name Iowa Fertilizer Company in Fort Madison, Iowa. The project has moved into an advanced engineering phase, with plans to begin construction on the ammonia, urea, nitric acid and UAN units by mid-2013. After the two-year construction period, OCI aims to start manufacturing at the plant by the summer of 2015.
Another significant project in the region is a $1.2 billion grassroot plant planned by CHS Incorporated (Inver Grove Heights, Minnesota) in Jamestown, North Dakota. The construction for this plant has been delayed until mid-2014, as it is still in an early planning phase. The plant, which will eventually produce 2,200 tons per day of anhydrous ammonia, plus urea and UAN fertilizers, is planned to start up by the end of 2016.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, 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.
As expected, the Southwest region of the U.S. has the most fertilizer projects in North America's Chemical Processing Industry (CPI), with 14 valued at $3.4 billion. Most of the investment in this region can be attributed to CF Industries' (NYSE:CF) (Deerfield, Illinois) expansion of its plant in Donaldsonville, Louisiana. The planned $2.1 billion expansion consists of four new units to increase plant capacity by 3,600 metric tons per day of ammonia, 3,850 metric tons per day of urea, 5,000 metric tons per day of UAN, and 1,600 metric tons per day of nitric acid. Construction is expected to begin in the second half of 2013 on several of the units, with full operation scheduled for the beginning of 2016.
Closely following the Southwest is the Midwest region. This region is traditionally home to a large percentage of the nation's farm planting, which drives demand for fertilizers. In the past couple of years, the total number of CPI plants has not increased drastically in the region--they now number 190--but potential investments have. The region currently has the largest planned investment in the U.S. fertilizer sector, with 11 projects at $5.6 billion. With a small number of projects with high total investments, the average spending per project stands at $500 million due to the large amount of grassroot fertilizer plants and unit additions.
One of the major projects in the Midwest region is a $1.5 billion grassroot plant being planned by OCI (UK) Limited, a subsidiary of Orascom Construction Industries (Cairo, Egypt), which uses the name Iowa Fertilizer Company in Fort Madison, Iowa. The project has moved into an advanced engineering phase, with plans to begin construction on the ammonia, urea, nitric acid and UAN units by mid-2013. After the two-year construction period, OCI aims to start manufacturing at the plant by the summer of 2015.
Another significant project in the region is a $1.2 billion grassroot plant planned by CHS Incorporated (Inver Grove Heights, Minnesota) in Jamestown, North Dakota. The construction for this plant has been delayed until mid-2014, as it is still in an early planning phase. The plant, which will eventually produce 2,200 tons per day of anhydrous ammonia, plus urea and UAN fertilizers, is planned to start up by the end of 2016.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, 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.
