Second Quarter Ends on Positive Note for the Chemical Processing Industry

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Researched by Industrial Info Resources (Sugar Land, Texas)--Despite the numerous hurdles facing the chemical processing industry (CPI) of North America, Industrial Info Resources has reported an additional 82 capital and maintenance projects in the industry during the month of June valued around $1.2 billion. In addition to these new project reports, various previously reported projects have been upgraded with additional details, bringing the total of new North American CPI reports released during June to 108 projects with a combined total investment value of more than $2 billion.

Click on the image at right to see projects reported in the North American Chemical Processing Industry in June 2008.

The most positive sign of the reported project activity last month is the number of projects that have already been approved and/or entered an engineering phase. Over $1.5 billion of the projects reported in June were previously approved, reinforcing the short term confidence in the industry. Some of the largest approved projects include plans by Church & Dwight Company Incorporated (NYSE: CHD) (Princeton, New Jersey) and PetroLogistics LLC (Houston, Texas). Church & Dwight has chosen both an engineering firm and general contractor to construct a grassroot detergent plant in York, Pennsylvania. This new plant is replacing an older, inefficient plant and is expected to cost more than $150 million to build. PetroLogistics has acquired the former chemical site of ExxonMobil Corporation (NYSE: XOM) located in Houston, Texas, and plans to invest an estimated $300 million to produce propylene, hydrogen and other chemical commodities at the site.

While the momentum of the general economy remains under intense scrutiny, the CPI continues to buck the trend with consistent price increases that have been well received along with a healthy mix of aggressive growth projects. Over $100 million in planned maintenance turnaround projects were reported with the average total investment value of each project approaching $2.5 million.

Nearly half of the activity reported during June was identified in the Southwest market region. This region is home to some of the largest CPI plants on the continent and has historically been dependent upon the health of the oil, gas and energy markets. While each of these markets still plays a crucial role in the industry's long-term success, export markets for many commodities still remain attractive and are helping bridge the gap in the shortcomings of the domestic market.

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Industrial Info Resources (IIR) is a marketing information service specializing in industrial process, energy and financial related markets with products and services ranging from industry news, analytics, forecasting, plant and project databases, as well as multimedia services.