Fourth-Quarter Chemical Plant Maintenance Turnarounds Increase Sharply

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Spirits and attitudes about the future of the Chemical Processing Industry (CPI) continue to improve across most segments of the industry, as operating rates continue to inch higher and signs of improved demand look promising. Generally speaking, a good indicator of industry confidence is the level of maintenance turnaround activity taking place, and this fall, that activity is up sharply. For the fourth quarter of 2009, Industrial Info identified and reported 87 individual CPI plant or unit turnarounds with a total investment value (TIV) of nearly $244 million. For the fourth quarter of 2010, the number of maintenance turnarounds has already increased to more than 140, with an estimated TIV of more than $315 million.

The increase in maintenance turnaround activity has crept upward as the year has progressed. Maintenance spending remains one of the largest priorities in a chemical plant, as it is one of the primary ways to keep up with safety standards, increase reliability and increase efficiency where possible. Even during recessionary times in 2009, maintenance turnaround activity met or exceeded prior year levels in most cases. Many plant owners even resorted to supplementing the third party vendors needed for these events with their own operations staff to meet budget reductions or requirements to limit contractor usage.

The Southwest region of the United States represents more than one-third of the maintenance turnaround activity planned for the fourth quarter and almost 50% of the total spending. Surprisingly the market region with the second-highest level of spending is Quebec, Canada. Several major turnarounds planned at sites owned by Interquisa Canada (Montreal, Quebec), QIT Fer & Titane Incorporated (Sorel-Tracy, Quebec) and others are taking the total maintenance spending in the region to an estimated $35 million during the fourth quarter of this year. The Mid-Atlantic and Southeast regions of the U.S. are both equally planning an estimated $28 million during the quarter.

Looking ahead to the first quarter of 2011, the increase in maintenance turnaround activity is expected to continue. This increase is considered another strong signal of industry confidence, considering the first quarter of the year historically isn't one of the busiest times for planned maintenance turnarounds because of the cold weather conditions in most of the country at this time.

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR'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.