News Release 1309

The world market for fabric filter systems in 2010 will be down by 11 percent and will not recover until 2012. This is the latest forecast in the continually updated McIlvaine report, World Fabric Filter and Element Market. In 2009 overall sales will remain at a high level only because of orders already booked but not yet recognized as revenue. However, in steel and cement the 2009 revenues will be down significantly. The stimulus packages in the U.S. and China will have longer term positive impact in both segments.

The outlook for the replacement bags is brighter. Sales will increase slightly in 2010 and continue to grow in 2011 and 2012.

Subject	2005	2006	2007	2008	2009	2010	2011	2012
Bags	1,856	1,964	2,087	2,211	2,223	2,297	2,389	2,486
Equipment	2,423	2,633	2,864	3,218	3,464	3,100	3,085	3,383
Systems	5,331	5,792	6,301	7,080	7,621	6,820	6,787	7,442

Power, cement, steel and asphalt will remain the four largest applications. The replacement of precipitators with fabric filters is continuing in the power industry despite the world recession. The U.S. power industry is installing fabric filters to help in mercury capture. It is also installing dry flue gas desulfurization systems which use fabric filters to capture the gypsum formed in the dry scrubbers.

In 2010 Asia will spend 50 percent more for fabric filter systems than will the Americas. Asian purchases will be two and a half times those of Europe. Sales of systems in Europe in 2010 will be off by 30 percent from the 2008 level. Carbon trading and the general economy are causing this slow down.

The companies participating in the industry can be segmented into raw materials (resins), fibers, roll goods, bags and equipment. Furthermore, the equipment suppliers can be segmented into three categories. The first is small standard equipment. Donaldson, Camfil Farr, AAF and Clarcor are representative of this category. The next category is suppliers of engineered industrial equipment. Met Pro, Ceco and Hamon are in this group. The third group includes the large utility segment where Alstom, Babock & Wilcox, and Siemens are dominant.

The U.S remains the leader in fabric filter equipment but a number of Chinese companies are entering the market place. Europe has continued to be a leader in the roll goods and fiber categories.

Much of the recent innovation has been in the development of roll goods. Membranes with non-woven backing have gained market share over conventional non-wovens. Nanofibers are creating higher efficiency with lower energy consumption.