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Chemical industry project completions remain strong in Q1
Chemical plant owners of North America are preparing for the effects the economic slowdown to last most, if not all, of this year. The Chemical Processing Industry (CPI) began to feel the constraints and effects of the economic crisis later than most industries, largely because of the industry substantial access to global markets. Reinforcing this is the number of very large projects scheduled to be complete during the first quarter of 2009. There are currently more than 100 capital and maintenance projects planned to be complete during the first three months of this year with a combined estimated value of $1.8 billion. Many of these projects began construction while the CPI was enjoying the greatest momentum seen in the industry for 10 years or more. The challenge for these producers now will be to begin operations of these major investments and market the resulting end products.
The projects approaching completion during this quarter are, on average, some of the largest individual projects that will begin operations for the entire year. As the year unfolds, a greater number of large projects will almost certainly be delayed or cancelled entirely. Formosa Plastics Corporation USA (Livingston, New Jersey), a subsidiary of Tawain's Formosa Plastics Corporation (TPE:1301), is hopeful that commercial operations will begin for its SPVC unit addition at the company's Point Comfort, Texas, site. Huntsman Corporation (Salt Lake City) is planning to begin operations of its new maleic anhydride unit, located at the Geismar, La., site. In late 2007, BASF Corporation (Ludwigshafen, Germany) started in late 2007 on a major expansion of the Wyandotte, Michigan, resins plant that is currently nearing completion. Praxair Incorporated (Danbury, Conn.) and Air Liquide (Paris, France) both plan to complete major hydrogen capacity projects in the next couple of months. Each of these companies has been faced with unique challenges ranging from failed acquisitions to depressed markets.
The most noticeable effects of the current economic slowdown will likely have a greater impact on capital projects planned for the second and third quarters of this year. Already this year, the number of cancelled or postponed projects has continued to rise; for additional information, see related news article from January 26, 2009 - Number of North American Chemical Projects Placed On Hold Continues to Grow.
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. To learn more, visit www.industrialinfo.com.
The projects approaching completion during this quarter are, on average, some of the largest individual projects that will begin operations for the entire year. As the year unfolds, a greater number of large projects will almost certainly be delayed or cancelled entirely. Formosa Plastics Corporation USA (Livingston, New Jersey), a subsidiary of Tawain's Formosa Plastics Corporation (TPE:1301), is hopeful that commercial operations will begin for its SPVC unit addition at the company's Point Comfort, Texas, site. Huntsman Corporation (Salt Lake City) is planning to begin operations of its new maleic anhydride unit, located at the Geismar, La., site. In late 2007, BASF Corporation (Ludwigshafen, Germany) started in late 2007 on a major expansion of the Wyandotte, Michigan, resins plant that is currently nearing completion. Praxair Incorporated (Danbury, Conn.) and Air Liquide (Paris, France) both plan to complete major hydrogen capacity projects in the next couple of months. Each of these companies has been faced with unique challenges ranging from failed acquisitions to depressed markets. The most noticeable effects of the current economic slowdown will likely have a greater impact on capital projects planned for the second and third quarters of this year. Already this year, the number of cancelled or postponed projects has continued to rise; for additional information, see related news article from January 26, 2009 - Number of North American Chemical Projects Placed On Hold Continues to Grow.
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. To learn more, visit www.industrialinfo.com.