Economic Indicators

Business neWs
Plant Watch
U.A.E. to become home of worlds largest CSP plant June 10, 2010 Masdar (Abu Dhabi; www. masdar.ae) has appointed the bidding consortium of Total (Paris, France; www.total. com) and Abengoa Solar (Seville, Spain; www.abengoasolar.com) to own, build and operate Shams 1, said to be the worlds largest concentrated solar power (CSP) plant, and the first of its kind in the Middle East.The joint venture between Masdar (60%),Total (20%) and Abengoa Solar (20%) will develop, build, operate and maintain the plant, which will be located in Madinat Zayed in the United Arab Emirates (U.A.E.). Construction is slated to begin during 3rdQ 2010 and is expected to take about two years. KBR is awarded a contract for the Araromi Refinery Project in Nigeria June 2, 2010 KBR Inc. (Houston; www.kbr. com) has been awarded a contract by FPR Inc. (Houston) to provide design and early engineering services for the development of the Araromi Refinery Project in Nigeria.The low-complexity 160,000-bbl/d greenfield refinery will produce motor gasoline, automotive gas oil, kerosene and jet fuel.The project will be developed in phases, with an ultimate capacity of 320,000 bbl/d with a full petrochemical complex. Aker Solutions named in contract for first Russian chlorine-dioxide plant June 1, 2010 Aker Solutions (www.akersolutions.com) has signed a contract with Ilim Group to supply an integrated chlorine-dioxide plant for Ilims pulp mill project in Bratsk, Russia. The 15-metric ton (m.t.) per day integrated chlorine-dioxide plant is scheduled for commissioning in 2012, and will complement Ilims $700 million project to build a new, modern 720,000 m.t./yr pulp line at Ilim Groups existing Bratsk Mill.The plant will utilize Aker Solutions proprietary integrated chlorine-dioxide process technology. Dow Corning invests in innovation and solar energy June 1, 2010 The Dow Corning Corp. (Midland, Mich.; www.dowcorning.com) has announced that it will invest up to $13 million to expand its European capabilities to innovate with silicon-based materials and technologies.The investment in a Solar Energy Exploration / Development Center (SEED) includes two new buildings that will complement the companys Business & Technology Center in Seneffe, Belgium. Construction is expected to begin later in 2010. Cellulosic biofuel to be demonstrated in China May 31, 2010 Novozymes A/S (Bagsvaerd, Denmark: www.novozymes.com), Cofco Ltd. (www.cofco.com/en) and Sinopec Corp. (both Beijing, China; english.sinopec.com) have signed a memorandum of understanding covering the next steps toward commercialization of cellulosic biofuel in China.As part of the agreement, Cofco and Sinopec will build a cellulosic ethanol demonstration plant for which Novozymes will supply enzymes.The new plant comes online in the 3rd Q of 2011 and will produce 3-million gal/yr of bioethanol made from corn stover. Borouge signs an agreement to build second compounding plant in China May 28, 2010 Borouge, a joint venture between the Abu Dhabi National Oil Company (ADNOC; Abu Dhabi; www.adnoc.com) and Borealis (Vienna, Austria; www.borealisgroup.com) has announced its intention to build a manufacturing plant to produce up to 105,000 m.t./yr of compounded polypropylene resins. Construction is expected to be completed by mid-2012. Instant-coffee plant to be delivered by GEA Niro in Laos May 26, 2010 GEA Niro (Soeborg, Denmark; www.niro.com) has recently won a contract with Dao Heuang Group in Laos for the delivery of a complete instant-coffee processing line. When in full production the processing line will produce 3,000 ton/yr of instant coffee and is scheduled to start operation in November 2011.The plant will be constructed in Pakse and will be one of the countrys largest food-processing plants. Evonik acquires Ravindra Heraeus catalyst business June 7, 2010 Evonik Industries AG (Essen, Germany; www.evonik.com) has acquired the precious-metal-powder catalysts business of Ravindra Heraeus Pvt. Ltd. (Udaipur, Rajasthan, India). All know-how, technology, and business relationships with catalyst customers will pass from Ravindra Heraeus to Evonik, while the production equipment will remain with Ravindra Heraeus. Both partners have also concluded longterm agreements concerning contract manufacturing and precious metal recycling. Ravindra Heraeus is a joint venture between the precious metal and technology company Heraeus (Hanau, Germany) and the family enterprise Ravindra Choksi (India). Each partner holds a 50% stake in the joint venture. GE and Ramky enter into agreements for industrial water treatment June 7, 2010 GE (Fairfield,Conn.; www. ge.com) and Ramky Enviro Engineers, an environment and waste management organization, have signed emergency water and industrial-wastewater treatment agreements designed to address Indias industrial-wastewater treatment and recycling needs. Under the agreement, GEs ultra filtration (UF) and membrane bioreactor (MBR) technologies will be utilized by Ramky for wastewater treatment and recycling in Indias industrial sector. Total acquires interest in a developer of polysilicon production technology June 7, 2010 Total (Paris, France; www. total.com) has announced that its subsidiary,Total Gas & Power USA has acquired a 25.4% interest in the U.S.-startup company, AE Polysilicon Corp. (AEP), which has developed an advanced technology to produce polysilicon for photovoltaic panels (for more on polysilicon production, see CE, April 2010, pp. 2126).The acquisition is being made through a reserved capital increase. UPL to acquire fungicide from DuPont Crop Protection Business June 2, 2010 DuPont (Willmington, Del.; www.dupont.com) has announced that it has divested its global non-mixture mancozeb fungicide business assets to United Phosphorus, Ltd. (UPL), including manufacturing and formulation production facilities in Barranquilla, Colombia. Financial terms of the agreement were not disclosed. Dorothy Lozowski

Mergers and acquisitions

Wacker acquires silicon production site in Norway June 7, 2010 Wacker Chemie AG (Munich, Germany; www.wacker.com) is acquiring the Norwegian Fesil Groups silicon-metal production site in Holla and will take over all of Fesils production facilities in Holla.The transaction requires approval of Wackers supervisory board and Fesils board of directors as well as clearance by the antitrust authorities. Closing of the transaction is expected before the end of the 3rd Q 2010.

For additional news as it develops, please visit www.che.com

July 2010; VOL. 117; NO. 7 Chemical Engineering copyright @ 2010 (ISSN 0009-2460) is published monthly, with an additional issue in October, by Access Intelligence, LLC, 4 Choke Cherry Road, 2nd Floor, Rockville, MD, 20850. Chemical Engineering Executive, Editorial, Advertising and Publication Offices: 110 William Street, 11th Floor, New York, NY 10038; Phone: 212-621-4674, Fax: 212-621-4694. Subscription rates: $120.97 U.S. and U.S. possessions, $146.97 Canada, and $249 International. $20.00 Back issue & Single copy sales. Periodicals postage paid at Rockville, MD and additional mailing offices. Postmaster: Send address changes to Chemical Engineering, Fulfillment Manager, P.O. Box 3588, Northbrook, IL 60065-3588. Phone: 847-564-9290, Fax: 847-564-9453, email: clientservices@che.com. Change of address, two to eight week notice requested. For information regarding article reprints, please contact Lori Noffz at lori.noffz@theygsgroup.com. Contents may not be reproduced in any form without written permission. Publications Mail Product Sales Agreement No. PM40063731. Return undeliverable Canadian Addresses to: P.O. Box 1632, Windsor, ON N9A7C9. FOR MORE ECONOMIC INDICATORS, SEE NExT PAGE

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Economic Indicators
CHEMICAL ENGINEERING PLANT COST INDEX (CEPCI)
(1957-59 = 100)
Equipment Heat exchangers & tanks Process machinery Pipe, valves & fittings Process instruments Pumps & compressors Electrical equipment Structural supports & misc Construction labor Buildings Engineering & supervision

2010

2009

2008

DOWNLOAD THE cepci TWO WEEKS SOONER AT www.che.com/pci

650

CE Index

Apr. '10 Prelim. 555.2 666.0 622.6 625.4 829.5 426.7 902.4 472.5 688.7 326.8 508.7 341.4

Mar. '10 Final 541.8 645.5 592.5 614.0 801.7 421.0 903.4 472.1 665.6 328.2 504.3 341.8

Apr. '09 Final 511.7 600.4 534.2 584.9 752.5 390.1 897.5 460.2 609.0 326.5 487.9 348.5

Annual Index: 2002 = 395.6 2003 = 402.0 2004 = 444.2 2005 = 468.2 2006 = 499.6 2007 = 525.4 2008 = 575.4 2009 = 521.9
450 500 550 600

Starting with the April 2007 Final numbers, several of the data series for labor and compressors have been converted to accommodate series IDs that were discontinued by the U.S. Bureau of Labor Statistics

400

CURRENT BUSINESS INDICATORS

CPI output index (2000 = 100) CPI value of output, $ billions CPI operating rate, % Producer prices, industrial chemicals (1982 = 100) Industrial Production in Manufacturing (2002=100)* Hourly earnings index, chemical & allied products (1992 = 100) Productivity index, chemicals & allied products (1992 = 100)

LATEST
May. '10 Apr. '10 May. '10 May. '10 May. '10 May. '10 May. '10 = = = = = = = 97.7 1,870.4 73.0 272.8 102.3 153.9 136.0 Apr. '10 Mar. '10 Apr. '10 Apr. '10 Apr. '10 Apr. '10 Apr. '10 = = = = = = =

PREVIOUS
97.9 1,866.7 72.9 274.0 101.4 151.4 137.9 Mar. '10 Feb. '10 Mar. '10 Mar. '10 Mar. '10 Mar. '10 Mar. '10 = = = = = = = 96.8 1,789.6 72.1 273.3 100.5 150.0 137.3

YEAR AGO May. '09 Apr. '09 May. '09 May. '09 May. '09 May. '09 May. '09 = = = = = = = 90.1 1,492.4 65.8 223.4 94.8 147.4 133.4

CPI OUTPUT INDEX (2000 = 100)

120 110 100 90 80 70 2500 2200 1900 1600 1300 1000

CPI OUTPUT VALUE ($ BILLIONS)

85 80 75 70 65 60

CPI OPERATING RATE (%)

J F M A M J

J A S O N D

J F M A M J

J A S O N D

J F M A M J

J A S O N D

MARSHALL & SWIFT EQUIPMENT COST INDEX

(1926 = 100)

M & S INDEx

2nd Q 2010 1,461.3 1,522.1 1,519.2 1,493.5 1,505.6 1,416.4 1,527.6 1,430.1 1,625.9 1,564.2 1,414.0 1,569.1 1,786.9 1,488.0

1st Q 2010 1,448.3 1,510.3 1,508.1 1,481.8 1,496.0 1,403.0 1,515.1 1,416.4 1,615.6 1,551.0 1,389.6 1,552.1 1,772.2 1,475.0

4th Q 2009 1,446.5 1,511.9 1,508.2 1,483.1 1,494.3 1,400.1 1,514.1 1,415.8 1,617.6 1,560.5 1,377.3 1,548.1 1,769.5 1,470.8

3rd Q 2009 1,446.4 1,515.1 1,509.7 1,485.8 1,495.8 1,400.4 1,515.1 1,416.3 1,625.2 1,560.7 1,370.8 1,547.6 1,767.3 1,471.4

2nd Q 2009 1,462.9 1,534.2 1,532.5 1,504.8 1,512.9 1,420.1 1,535.9 1,435.6 1,643.5 1,581.1 1,394.7 1,562.9 1,789.0 1,490.8

1500 1485 1470 1455 1440 1425 1410 1395 1380 1365 1350 1335

CURRENT TRENDS
apital equipment prices (as reflected in the April CE Plant Cost Index) continue to climb according to a typical mid-year trend, but the deficit between 2010 and 2008 prices has widened a bit. Overall production in the chemical process industries fell by 0.9% in May, following a 0.4% gain in April, the American Chemistry Council (ACC; Arlington, Va.; www.americanchemistry.com) says. Among the five major segments of U.S. Federal Reserve Board data that ACC analyzes, production rose for agricultural chemicals and specialty chemicals, but was weak in consumer products, pharmaceuticals and basic chemicals. Visit www.che.com/pci for more on capital cost trends.

Process industries, average Cement Chemicals Clay products Glass Paint Paper Petroleum products Rubber Related industries Electrical power Mining, milling Refrigeration Steam power

2002 = 1,104.2 2003 = 1,123.6

Annual Index: 2004 = 1,178.5 2006 = 1,302.3 2005 = 1,244.5 2007 = 1,373.3

2008 = 1,449.3 2009 = 1,468.6

1320 1st 2nd 3rd Quarter 4th

Source: Marshall & Swifts Marshall Valuation Service manual. Reprinted and published with permission of Marshall & Swift/Boeckh, LLC and its licensors, copyright 2010. May not be reprinted, copied, automated or used for valuation without permission.

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