Over $2.6 Billion in CPI Projects Identified for 2007 with E&C Firms Already Selected

---

Researched by Industrial Info Resources, Incorporated (Sugar Land, Texas). The Chemical Processing Industry (CPI) continues to perform strongly despite world events and the shifting cost of feedstock. Reinforcing the industry’s positive outlook for capital and maintenance spending during 2007, is the selection of design, engineering and/or construction services for over $2.6 billion in planned project activity scheduled to begin construction next year. This activity is comprised of 64 capital and maintenance projects at over 60 plant sites in the United States and Canada.

Click on the image at right to view a chart showing the breakdown of projects by market region.

E&C or Design-Build services account for seventeen of these projects and represent nearly half of the total spending at an estimated $1.1 billion. The remaining services include engineering, consulting, architectural and general contracting. Industrial Info tracks contractor awards and identifies their primary role in a project using one of several firm types, such as Design-Build, E&C Firm, Engineer, A&E, G/C, C/M, and others as part of its North American Projects Database.

One of the largest investments in this group of projects is a plan by ChevronPhillips Chemical Company LP (The Woodlands, Texas) to construct a new polyphenylene sulfide (PPS) Ryton unit at its Borger, Texas plant site. Jacobs Engineering Group, Incorporated (NYSE:JEC) (Pasadena, California) has been selected as the E&C firm for this estimated $200 million project that will add nearly 22 million pounds per year of Ryton capacity to the merchant market when complete in late 2007. Completion of cost estimates and final capital approval are expected by October 2006.

Rentech, Incorporated (NYSE:RTK) (Denver, Colorado) completed the purchase of Royster Clark’s fertilizer plant in East Dubuque, Illinois this summer and is moving quickly with plans to convert the plant’s feedstock from natural gas to coal. Rentech is working with WorleyParsons Group, Incorporated (Houston, Texas) to complete a cost estimate for the conversion, which is estimated at over $700 million. This conversion will allow Rentech to begin producing additional products at the Illinois plant including ultra-clean hydrocarbon fuels and merchant power.

The number of projects reported to begin construction in 2007 with major contractor services already identified or awarded equals a substantial increase over project activity planned for 2006 at this same time last year when only 40 projects were reported.

View Plant Profile - 1023973 1000232
View Project Report - 01011037 09003419

Industrial Info Resources (IIR) is a Marketing Information Service company that has been doing business for over 23 years. IIR is respected as the leader in providing comprehensive market intelligence pertaining to the industrial processing, heavy manufacturing, and energy-related industries throughout the world.