Industrialinfo.com Provides Early Look at Projected Top Chemical Processing Spenders for 2006

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). The Chemical Processing Industry (CPI) continues to perform strongly, despite the growing cost of oil and the continued increase in feedstock and energy costs. Building from the momentum and strength that the CPI has displayed during the past two years, 2006 is expected to be another year of significant growth and investment opportunities across North America for most CPI companies. The current, and even an increased, demand will prompt investments in process upgrades and technology improvements for plants operating with technology that was installed decades ago and designed to operate on much cheaper feedstock.

Substantial investments in new efficient and environmentally-friendly equipment and catalyst technology are required to keep the industry cost competitive in the global marketplace. The installation of new efficient furnaces and heaters with low emission levels is one item on the list of almost every petrochemical producer. In addition, employing the latest and most advanced catalysts in reactors across most chemical sectors, especially those in resins and industrial organic chemicals, continues to be the key to increased profitability. CPI producers across North America have made significant investments in new instrumentation and automation upgrades over the past five years, and this effort will continue to present opportunities for technology and equipment vendors in the coming year.

There are over 270 individual CPI capital and maintenance projects currently being tracked by Industrialinfo.com with planned construction starts during 2006. The CPI sectors with the most and the largest projects planned for next year are the industrial organic chemicals and petrochemicals sector and the agricultural chemicals sector, each with over $1.2 billion in total spending forecasted. Ag chemicals tops the list, with 21 projects, including two very large and unusual projects that together represent over $1 billion. The first is a feedstock conversion from natural gas to coal at an ammonia plant, and the second is a coke gasification-to-hydrogen plant addition.

Click on the image at right to view a list of the top spenders by SIC Code and Company Name.

Some of the CPI companies at the top of the spending list for next year include names that may not have been at the top for many years. CF Industries Incorporated is the lead player in studies for the coke gasification plant in Louisiana. This nearly $700 million project easily pushes them to the top of the list. Royster-Clark Incorporated is evaluating technologies for an estimated $400 million project to produce an estimated 4,800 barrels per day of hydrocarbon fuels and 1,400 tons per day of ammonia from coal in Illinois. PEMEX-Gas y Petroquímica Básica is still optimistic that construction will begin late next year for ethylene expansions that are part of a large olefins expansion program at several sites.

For more information on the North American Chemical Processing Database contact Industrialinfo.com's Member Center at 1-800-762-3361.

Industrial Information Resources (IIR) is a Marketing Information Service company that has been doing business for over 22 years. IIR is respected as a leader in providing comprehensive market intelligence pertaining to the industrial processing, heavy manufacturing, and energy-related industries throughout the world.