Maintenance Becomes the Focus for Agricultural Chemical Plants in 2010

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Researched by Industrial Info Resources (Sugar Land, Texas)--Producers of fertilizers, herbicides, pesticides and related products make up a rather small segment of the Chemical Processing Industry (CPI) in the United States and Canada with fewer than 200 plants in total. Despite the size of this segment, it has been a significant player in capital and maintenance spending for the past couple of years, and the outlook for 2010 remains strong. Industrial Info is currently tracking more than 70 projects with a total investment value (TIV) of nearly $386 million in this segment of the CPI that are planned to begin construction in 2010.

While operating rates in these plants were reduced slightly as a result of the economic slowdown, overall spending this year has remained constant, with an estimated $320 million invested in 2009. Natural gas, a primary feedstock and energy source for this industry segment, has traded with much less price volatility than in previous times that have supported profitability. Demand for fertilizer products has been steady and largely driven by mandates for the increased use of ethanol, which has in turn supported the demand to plant more than 12 billion bushels of corn per year.

More than half of the planned 2010 project activity identified for this segment in Industrial Info's North American Plant Database is for planned maintenance turnarounds. The corrosive and demanding environments of these plants demand very routine and scheduled maintenance programs. With operating rates remaining high, the requirement for maintenance turnarounds at these facilities remains high, as well.

The single largest capital investment expected to get under way next year is for a grassroot ammonia plant in Menlo, Iowa, by SynGest Incorporated (San Francisco, California). This will be the first grassroot ammonia plant built in North America in recent history, and the first of its kind using biomass feedstock to produce hydrogen and ammonia through gasification technology. The new plant is expected to cost more than $100 million to construct, and plans are already being considered to construct a second plant of similar size within the next two years.

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Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy related markets. For more than 26 years, Industrial Info has provided plant and project opportunity databases, market forecasts, high resolution maps, and daily industry news.