Industrial Info Resources forecasts total spending for Canada’s Chemical Processing Industry (CPI) to reach a potential $1.2 billion this year as global demand show signs of strengthening.
This is a change from the past several years as the global recession and decreased demand took effect on Canadian CPI plant owners with CPI construction starts barely exceeding $250 million in recent years, Industrial Info says.
The projected spending increase is based on a number of large, previously postponed projects going forward as planned, including a $300 million expansion of Canadian Fertilizers Limited’s Medicine Hat plant in Alberta and a $125 million expansion of the Cytec Industries Inc. plant in Niagara Falls, Ontario. Industrial Info reports there are 14 major CPI projects, valued at more than $20 million each, scheduled to begin construction in Canada this year.
As home to the greatest number of CPI plants in Canada, Industrial Info says Ontario and Alberta will see nearly $500 million in total capital maintenance spending from a total 65 different projects. The increase in maintenance activity is expected to double from 2011 reaching $230 million from 68 planned turnarounds identified and reported for 2012.
Industrial Info says increased demand from domestic and international markets positions Canadian CPI producers to capitalize on the overall market”s forward direction.
To read the full Industrial Info report, click here (registration required).
