North America to See New Wave of Polyethylene Capacity Projects

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Researched by Industrial Info Resources (Sugar Land, Texas)--Polyethylene, one of the most common derivatives produced from ethylene, is a versatile plastic with a variety of uses, including packaging, automotive, construction materials and electronics. With all the large ethylene capacity projects that have been announced during the last few years in North America, it was only a matter of time before a wave of downstream derivative projects would be announced.

In the U.S. and Canada, Industrial Info is tracking 30 active capital projects with a total value of about $6 billion that are planned in polyethylene units.

Budding economies throughout the world, such as China and India, are driving the growth of the polyethylene market and opening opportunities for the U.S. and Canada to take advantage of low-cost natural gas and to export polyethylene.

There are 15 new polyethylene unit additions, valued at about $5 billion, covering several different types of the polymer, including high-density polyethylene (HDPE), low-density polyethylene (LDPE) and linear low-density polyethylene (LLDPE). The largest single investment is $900 million for NOVA Chemical Corporation's (Calgary, Canada) plant in Joffre, Alberta. A third production train to produce LLDPE will be installed, increasing overall polyethylene plant capacity nearly 40%. Ledcor Group is the general contractor. Construction began in June 2013, with plans to complete the expansion in August 2015.

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The majority of these projects are expected to be brought online between this year and 2018, with expectations that even more capacity will be announced.

Dow Chemical Company (NYSE:DOW) (Midland, Michigan) is building a new ethylene cracker at the Oyster Creek plant in Freeport, Texas, and is upgrading the ethylene unit in Plant B. It also is planning a feed flexibility project. The new unit, which will be called LHC-9, will include eight furnaces and produce 2.6 billion pounds per year of ethylene. It is expected to be completed by the second quarter of 2017.

View Project Report - 300034246

With a new abundance of ethylene being produced in the Freeport area, Dow has proposed construction of two new polyethylene plants at plant B, also in Freeport: a 400,000-tonne-per-year LDPE unit and a 650,000-tonne-per-year LLDPE unit. These projects have received the approvals required for construction, which is expected to begin in the middle of 2015. Completion is expected by the end of 2016.

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Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info'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.