Grassroot North American Chemical Plant Start-Ups Exceed Expectations for 2002, Positive Forecast for 2003

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Earlier this year Industrialinfo.com estimated that there were 27 grassroot chemical plants with start-ups expected during 2002. So far this year, twenty-four plants have actually begun operation, exceeding our expectations. Seven grassroot plants are currently under construction with planned completions before the end of the year. With that in mind, the fourth quarter will position the North American chemical industry for a strong finish in respect to grassroot construction.

"Despite a slow economy, the chemical industry performed much better than most expected during the first half of the year, providing the catalyst to complete some large grassroot projects this fall with a positive outlook ahead for 2003," commented Trey Hamblet, Chemical Group Manager with Industrialinfo.com. The seven new plants coming online in the fourth quarter of this year represent two coating plants, three inorganic and organic chemical producers, one biosolids fertilizer plant, and a polymers distributor in the Southwest. (Click on the image to the right to view the 2002 & 2003 North American Chemical Plant Start-Up Map)

Plans for grassroot construction during 2003 are starting to take shape as Industrialinfo.com has already identified plans for 38 grassroot plants in the U.S. and Canada. Of those plants, eleven are already under construction, with the remaining projects in various phases of development.

The top three market regions receiving the greatest number of new plants are the Great Lakes with ten plants, the Southeast with eight plants and the Southwest coming in third place with four grassroot plants.

The chemical industry overall is very optimistic and most producers are anticipating a very productive and profitable year in 2003. The fact that 2002 will likely close with four plants more or 12.9 percent higher than was forecast is a positive sign and a great way close to the year and enter 2003.

Four new agricultural chemical or fertilizer plants planned for next year shows confidence that demand will be increasing for both ammonia and urea. Five new industrial gases plants is a big event as most industrial gases producers have been targeting smaller onsite generation plants for the past several years.