China Will Be The Largest Ultrapure Water Purchaser By 2020

Ultrapure Water (UPW) is used for steam generation in power plants, to wash chips in semiconductor plants, and for human injectables in the pharmaceutical industry.  The total market for UPW is forecast to rise from $3.5 billion this year to over $5 billion in 2010, according to the McIlvaine Company in the most recent update of its online Ultrapure Water World Markets report.

China will be a big contributor to this growth.  China is already the largest purchaser of UPW for the power industry and the fifth largest purchaser for all industries.  This is reflected in revenues of contractors installing UPW systems.

                                    * UPW Construction All Industries

                                                     ($ Thousands)

Country                                     2010                         

Japan                                       108,058

Taiwan                                     102,888

United States                              91,887

South Korea                               88,802

China                                         51,171

United Kingdom                         14,835

India                                           14,384

Germany                                    14,205

France                                          9,626

Singapore                                     7,670

* Only mechanical and electrical contracts but not equipment.

UPW Construction Rankings for Power Industry in 2010:

Country

China

United States

Germany

India

Japan

Russia

South Korea

Taiwan

Poland

The semiconductor industry is the largest purchaser of UPW systems.  Presently China is a small but rapidly growing player in chip manufacturing.  However, since it is the biggest purchaser of chips, it is also in the position to become the largest supplier and will do so by 2020.  Even before that date it will become the biggest purchaser of new UPW systems.

The flat panel industry is one of the fastest growing markets for UPW systems.  China is rapidly growing in this segment.  Nearly all the manufacturing of flat panels takes place in Asia and is likely to remain there.

There is a surge in building of new coal-fired plants in the U.S.  But China is building more than the rest of the world combined.  All of the plants will use the latest UPW technology.

For more information on Ultrapure Water World Market, click on: http://www.mcilvainecompany.com/brochures/water.html#n029 .

Bob McIlvaine

847-784-0012

www.mcilvainecompany.com