Synthetic Rubber Producers Begin to Consider Capital Projects Again

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Researched by Industrial Info Resources (Sugar Land, Texas)--As the automotive industry and many consumer-driven sectors that demand or consumer synthetic rubber hit near rock bottom over the past two years, producers of synthetic rubbers experienced one of the most dramatic pullbacks in spending witnessed in the industry in decades. At the start of 2010 this group of producers was expected to begin construction for only a handful of projects totaling an estimated $84 million. At the close of the year, total spending barely exceeded $47 million.

As the newest calendar year is officially under way, the outlook for this segment of the Chemical Processing Industry (CPI) for 2011 is improving, although the increase still won't equal that of more robust years when spending in this segment often topped $200 million or more annually. Based on projects identified as part of Industrial Info's North American Project Database, total spending for this segment of the CPI could reach $65 million this year. Although this isn't a huge leap in overall spending there is a significant change in the type of spending planned for this year, with an increase in the number of capital dollars allocated versus maintenance. In 2010, total capital investments reached only $12 million, and for 2011 the projection is $44 million, while the remaining $21 million is for maintenance.

Some of the largest projects this year will include plans by Firestone Polymers LLC (Akron, Ohio), E I du Pont de Nemours and Company (NYSE:DD) (Dupont), and Solvay Advanced Polymers LLC (Augusta, Georgia). Firestone Polymers is considering plans for the addition of a new reactor at its Lake Charles, Louisiana, plant that could begin construction this summer. Dupont is reviewing multiple process improvements for its neoprene rubber manufacturing plant located in La Place, Louisiana, that could begin within the next few months. Solvay Advanced Polymers has begun engineering and plans to begin the installation of a new glass-lined reactor vessel and supporting equipment at its Augusta plant during the second quarter of this year.

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