Top 10 CPI Spenders Plan More than $6.3 Billion in Project Activity

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Researched by Industrial Info Resources (Sugar Land, Texas)--Plans for future project activity are closely watched in almost every industry segment, although few industries are as closely tied to energy and energy feedstock as the Chemical Processing Industry (CPI). The rising costs of crude oil and natural gas continue to make a difficult market for CPI plant owners to predict future supplies and market demand. Capital and maintenance projects that are planned to begin construction in July 2008 and beyond total more than $17.3 billion. Nearly one-third of these projects are planned by just 10 companies.

The current top 10 CPI spenders are:

•CF Industries (NYSE:CF)
•Gramercy Alumina LLC
•Shin-Etsu Chemical Company Limited
•ADA-ES Incorporated (NASDAQ:ADES)
•Air Products & Chemicals Incorporated (NYSE:APD)
•Terra Industries Incorporated (NYSE:TRA)
•Dow Chemical Company (NYSE:DOW)
•LyondellBasell Industries
•Koch Industries Incorporated
•Westlake Group (NYSE:WLK)

As new projects are identified, this list of top spenders changes; five of these companies are in the top-10 position for the first time this year based on future spending.

Shin-Etsu Chemical Company has consistently remained in the group of top 10 spenders for some time. Plans announced earlier this year for its United States subsidiary Shintech Incorporated to build an $820 million grassroot vinyl chloride monomer and chlor-alkali plant in Texas in 2009 solidified its current position as a top spender. Plans by CF Industries to invest more than $1.3 billion in the near future places them at the very top of the list. For more information, see related June 20, 2008, article - CF Industries Continues to Play Dominant Role in Ag Chemicals and Considers Entry in Gasification.

ADA-ES has remained in the list of top spenders for the past year and has three grassroot activated-carbon plants in various stages of development, which could equal nearly $1 billion in spending if each project moves forward. Air Products & Chemicals, with nearly $500 million of planned investment, continues to capitalize on the strong market for industrial gases and the demand for hydrogen from refiners in order to produce low-sulfur transportation fuels. Each of these companies faces its own unique challenges and market obstacles, but they also share many of the same needs for energy and feedstock. In past months, several of these companies have joined others in the Chemical Processing Industry to raise prices substantially in order to offset rising costs. Dow Chemical recently announced another 25% price increase next month along with additional surcharges for truck and rail shipments of up to $600. Despite these obstacles and the price increases implemented by many in the industry, optimism still abounds that the industry will maintain a healthy level of investment spending for the coming year.

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