Third-Quarter Chemical Industry Project Cancellations Fall Sharply Compared to Last Year

---

Researched by Industrial Info Resources (Sugar Land, Texas)--At this time last year, markets around the world were wondering how long it would take before a measureable improvement would emerge in the Chemical Processing Industry (CPI). Now, a full year latter and with nearly half of the 2010 calendar year complete, there are numerous signs that economic recovery for the CPI in the United States and Canada is well under way. One of the most important measures to acknowledge the strength or weakness of the market is to gauge the number of project cancellations or industry "fall-out."

Industrial Info has identified only 23 capital and maintenance chemical projects in the United States and Canada originally planned to begin construction in the approaching third quarter that have been placed indefinitely on-hold or cancelled entirely. This is less than half the number of project cancellations or delays during the third quarter of last year, which totaled 52 and represented a total investment value (TIV) of nearly $350 million. Although the number of projects has declined sharply, the TIV of those projects cancelled or placed on-hold this year rose to more than $575 million. The TIV is up sharply as the result of a few large capital projects.

Bigler Petrochemical LP (Pasadena, Texas), which recently began operations of a new high-purity isobutylene plant in Pasadena early last year, had ambitious plans for expanding the site this summer. Bigler filed for bankruptcy late last year, crippling the plans for several major expansions at the site, including a new $80 million acid-regeneration unit originally planned to begin construction during the third quarter of this year.

Alberta Envirofuels Incorporated (Edmonton, Alberta) has considered for years a major $300 million expansion of the company's iso-octane fuel oxygenates plant in Edmonton, but has placed plans for this expansion on-hold indefinitely.

With project cancellations down, the CPI is optimistic that investment and maintenance spending will continue to rise. In fact, the outlook for project spending during the third quarter of this year is expected to increase nearly 30% compared to last year. For additional information, see June 11, 2010, article - Third-Quarter Investments for North American Chemical Industry Appear Strong.

View Plant Profile - 1029690 1018508
View Project Report - 1013122 56001216

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR'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.