K2 Pure Solutions Advances with Plans for Two Chlor-Alkali Plants in California

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Researched by Industrial Info Resources (Sugar Land, Texas)--K2 Pure Solutions Incorporated (Concord, Ontario) has aggressively pursued the opportunity to construct two new chlor-alkali plants in California for the past couple of years, and these plans appear to be nearing construction. In Pittsburg, California, K2 Pure is expected to select a general contractor from an established shortlist in the coming weeks for construction of the company's planned chlorine, caustic soda and sodium hypochlorite units, which will be located at the Dow Chemical Company (NYSE:DOW) (Midland, Michigan) site in Pittsburg. The new plant will cost an estimated $150 million and will produce nearly 460 million pounds per year of product for Dow and the merchant market. Pending final contract awards, construction could begin by the end of this year for each of the new units of this proposed plant.

Further south in the state, K2 Pure is nearing the approval phase for a grassroot chlor-alkali plant to be located near Los Angeles, providing the regional market with chlor-alkali products to serve the wastewater-treatment industry. Approval for this estimated $25 million project is expected in the first quarter of 2010, with construction possibly beginning by the summer of next year.

The chlor-alkali segment of the Chemical Processing Industry (CPI) has suffered from the same pullback in operating rates across the entire industry, which are mostly related to the reduced manufacture of vinyl and plastics. One of the drivers behind this project and a handful of similar units planned in the United States is the desire to produce wastewater-treatment products on a more regional basis to reduce transportation hazards and costs.

K2 Pure is a relatively new company with plans to construct plants similar to these in other locations in the U.S. and Canada. As the general economy and the CPI continue to build momentum and recover from the recent recession, opportunities for these plants seem certain to increase.

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