Scrubber/Adsorber Market News

Here are excerpts for the month of September in the Updates to Scrubber/Adsorber World Markets.  The updates reflect only some of the new additions.  The analysis and revenues are constantly revised.  For more information, click on: http://www.mcilvainecompany.com/air.html#n008 .

SCRUBBER UPDATE

SEPTEMBER 2005

PETROCHEMICALS

…..Petrochemical profitability is expected to improve further in 2005, with continued strong contributions from aromatics, butadiene, ethylene oxide (EO) and propylene, and improved performance in the ethylene and styrene chains, according to Chemical Week.

"Last year was a great recovery year for the industry, and 2005 is starting out strong," says Stacy Methvin, v.p./base chemicals at Shell Chemicals. "The outlook is positive. Refining and chemical margins are very strong, and co-products are also rising," Methvin says.

IRON ORE

…..The most significant new development, in the short term, is expected from Rio Tinto's Pilbara operations in western Australia where capacity at the Yandicoogina mine is being increased from 24 million metric tons per year (mt/y) to 36 million mt/y from early 2005. Notable increases in mine output are also expected from the continued expansion of the West Angelas mine to 25 million mt/y from a current rate of 20 million mt/y by mid-2005. The recently-commissioned Eastern Ranges mine also has a projected annual capacity of 10 million tonnes.

PULP MILLS

The Financial Times reports pulp production has grown rapidly in countries such as Indonesia, South Africa and China. But few can compete with Brazil's production costs. At Veracel they are $120 a tonne, against $320 in North America and nearly $400 in Scandinavia, according to Agora Senior, a Rio de Janeiro brokerage.

CHEMICALS

…..In spite of its recent rapid GDP growth, Poland still harbors a relatively cheap labor force and offers surprisingly flexible labor laws that can bring down production costs substantially. Poland is a place where skills will come at a bargain given the high level of education of its workforce, and of scientists and engineers in particular.

The chemical industry is poised to generate 7% to 8% growth this year after posting an already impressive growth of 9.5% in 2004.

REFINERIES

Arizona Clean Fuels, based in Phoenix, has been granted approval for air permits concerning what could be the first refinery plant to be built in the U.S. since the 1970s. The planned $2.5 billion facility would be built on desert land about 40 miles east of Yuma, AZ. The Arizona Department of Environmental Quality drafted the air permit that set emission limits and pollution control requirements for the company.

ODOR

A fish meal plant that opened near Tacoma, WA recently could be shut down if operators can't find a way to control odors.

…..Three companies in a highly-industrial corner of the northeast San Fernando Valley committed to lands ape their properties and enclose their trash-sorting operations to control odors and dust.

Sun Valley Paper Stock agreed to construct a 12,000-ft² building, complete with demisters for dust and equipment to control odors as it handles material. Meanwhile, American Waste, which collects and recycles construction debris and wood, agreed to enclose its operations and install solar panels on the roof.

COMPANY NEWS

The management team of Monsanto Enviro-Chem Systems, Inc. in partnership with American Industrial Partners has successfully completed the acquisition of Enviro-Chem's worldwide business interests from Monsanto Co.

MECS, Inc. will be the new company name. MECS, Inc.'s current management team will continue to operate the existing portfolio of businesses. The locations of major offices and manufacturing facilities for MECS, Inc. will remain unchanged.

For More information on all McIlvaine services, click on:  www.mcilvainecompany.com or call us at: 847-784-0012.

Bob McIlvaine

rmcilvaine@mcilvainecompany.com