Sulfuric Acid Producers Buck Investment Trends

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Researched by Industrial Info Resources (Sugar Land, Texas)--Total future investments in sulfuric acid are up this year compared to 2008, with a total investment value (TIV) in North America currently exceeding $624 million. At this time last year, Industrial Info was tracking only $450 million in future investments for this niche segment of the Chemical Processing Industry (CPI). This sharp increase in total investments is largely due to emission-reduction projects and plans for long-term capacity additions.

The most significant project currently under way is that of PCS Phosphate Company Incorporated (Northbrook, Illinois) at their site located in Aurora, North Carolina. This estimated $100 million project includes the construction of a new sulfuric acid unit with an estimated capacity of 5,400 tons per day that is expected to be complete and online by early next year. When complete, this new unit will replace one or more of the older units located on the site to support the manufacture of phosphoric acid.

The reduction of sulfur-dioxide emissions has prompted a significant round of investments for the last couple of years in this market segment, leading to a substantial level of spending in order to comply with new emissions regulations. E.I. du Pont de Nemours and Company (NYSE: DD) (DuPont) (Wilmington, Delaware) has at least three such projects either in the design phase or under construction across the Great Lakes and East Coast. DuPont's peers in this industry share its burden; Rhodia Incorporated (OTC:RHAYY) (Princeton, New Jersey) and others have projects in the design phase to reduce emissions over the next several years.

Future investments in sulfuric acid are closely tied to the long-term success and momentum of fertilizers and petrochemicals. The commodities in each of these groups show signs of recovering strength in 2010 and beyond. Producers such as The Mosaic Company (NYSE:MOS) (Plymouth, Minnesota) are counting on a recovery coming about sooner rather than later. Industrial Info is currently tracking more then $225 million in total capital and maintenance project activity at Mosaic's acid plants in Florida. Looking even further down the road, in one or two years at least two significantly sized unit additions or grassroot plants are planned to produce commercial quantities of sulfuric acid, further reinforcing the industry's long-term confidence in this CPI segment.

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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.