Economic Indicators

Business News
Plant Watch
Rhodia increases intermediates
production in Brazil
April 26, 2007 — Rhodia Polyamide
announced a €30-million investment to
increase intermediates production capacity
at its Paulinia site in Brazil by the end of 2008.
Rhodia plans to expand its phenol and
acetone production capacities by 25% and
its cyclohexanol capacity by 43%.
ADA-ES plans activated-carbon
production in North Dakota
April 25, 2007 — ADA-ES, Inc. President, Dr.
Michael Durham, along with key project
team leaders and government officials,
jointly announced Underwood, N. Dak. as
a site for permitting and possibly building
a new activated-carbon production plant.
ADA-ES is securing and permitting multiple
sites for “greenfield” manufacturing facilities
to respond to the anticipated market for
activated carbon, which is the key chemical
needed to capture mercury from power
plants. ADA-ES will apply for permits for
two production lines at the Underwood
site, which would cost approximately $400
million to construct. Commercial operation
of the first plant is planned by 2010.
Akzo Nobel plans two new
plants for China
April 26, 2007 — Akzo Nobel plans to spend
€250 million to build two chemicals plants in
China. A 50-hectare plot has been reserved
within the Ningbo chemical industry zone
(NCIZ) and the two new facilities — for
the manufacture of ethylene amines and
chelating agents — will be the first to be
constructed on what will be one of the
biggest sites for the company’s activities in
the world. Work will begin once the relevant
approvals have been obtained from the
Chinese authorities.The chelating-agents
plant is expected to start up in 2009,
followed by the ethylene amines facility in
early 2010.The two production facilities are
similar in size and scope to Akzo Nobel’s
existing plants in Europe and the U.S.
Shanghai complex brings new para-
xylene capacity to China
April 25, 2007 — UOP LLC, a Honeywell
company, announced that Sinopec Shanghai
Petrochemical Co., a subsidiary of the China
Petroleum and Chemical Corp., has selected
UOP to supply technology, basic engineering
services and equipment for an aromatics
project to be installed at their Shanghai facility.
Engineering design is currently in progress with
commissioning of the complex scheduled
prior to the end of 2008.The new plant will
produce 600,000 m.t./yr of para-xylene and
280,000 m.t./yr of benzene.
Airgas to build an air-separation
plant in the U.S.
April 25, 2007 — Airgas, Inc. announced
plans to build an air-separation unit (ASU)
in New Carlisle, Ind., to meet increasing
demand for bulk and packaged gases in
the Midwest and to supply I/N Tek and I/N
Kote, the major steel processing facilities
owned by Mittal USA and Nippon Steel.
When completed in early 2009, the plant
will have the capacity to liquefy at least 350
tons/d of nitrogen, oxygen, and argon.
Huber plans to build dental-silica
plant in China
March 26, 2007 — Huber Engineered
Materials, part of J.M. Huber Corp., will invest
in a new dental-silica operation in China.
The site will support a plant that is expected
to output 40,000 m.t. of precipitated dental
silica, which is used primarily as a cleaning
agent in toothpaste formulations. Details of
the investment were not disclosed.
Mergers and
Acquisitions
BASF Aktiengesellschaft transforms
into BASF SE
April 26, 2007 — At their annual meeting,
BASF Aktiengesellschaft decided that it
will transform into a European company
(Societas Europaea, SE), with the name
BASF SE.The company’s headquarteres
and chief administrative offices will remain
in Ludwigshafen, Germany. BASF plans to
complete the transformation into an SE in
the 1st Q of 2008, after the conclusion of
negotiations with employee representatives.
“As a globally operating company with its
home in Europe, we want to give ourselves
a contemporary legal form,” said Dr. Jürgen
Hambrecht, Chairman of the Board of
Executive Directors of BASF AG.
Akzo Nobel strengthens protective
coatings portfolio
April 20, 2007 — Akzo Nobel signed an
agreement to acquire the worldwide
Ceilcote business from the German-based
KCH Group for close to €12 million. Ceilcote
specializes in polymer-based corrosion-
control solutions that are used to coat
concrete and steel structures, particularly in
the petrochemical and power industries.
Rohm and Haas acquires Kodak’s Light
Management Films Business
April 18, 2007 — An agreement has been
made for Rohm and Haas Co. to acquire
the Light Management Films Business of
Eastman Kodak Co.The business produces
advanced films that improve the brightness
and efficiency of liquid crystal displays
(LCD). As part of the agreement, Rohm and
Haas will acquire the intellectual property
associated with the business, as well as
a semiworks facility in Rochester, N.Y. and
the supply of key raw materials. Following
the close of the transaction, Rohm and
Haas will build a dedicated, high-volume
manufacturing facility in Asia with a
planned startup in early 2008.
Dow Chemical and Libya’s National Oil
Corp. plan a joint venture
April 18, 2007 — National Oil Corp. of
Libya and the Dow Chemical Co. have
announced plans to participate in a joint
venture to operate and expand the Ras
Lanuf petrochemical complex in Libya.
The agreement encompasses the site’s
existing naphtha cracker, two polyethylene
production facilities and associated
infrastructure.The project will include
refurbishment and expansion of the existing
units, followed by construction of an ethane
cracker and additional polyethylene
and polypropylene facilities. Later phases
will include construction of additional
hydrocarbon, plastics and chemical
production facilities based on natural gas.
Air Liquide acquires Lurgi
for €550 million
April 17, 2007 — Air Liquide, S.A. has
acquired the engineering firm Lurgi AG,
which is owned by Global Engineering
Alliance (GEA Group AG).This transaction is
based on an equity value of approximately
€550 million, which is equivalent to an
enterprise value of €200 million after
including the assumption of Lurgi’s cash
position as well as its pension and other
liabilities.The transaction is subject to
approval by the European and American
competition authorities. n
 Dorothy Lozowski

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May 2007; VOL. 114; NO. 5
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 Economic Indicators 2006 2007

download the cepci two weeks sooner at www.che.com/pindex

CHEMICAL ENGINEERING PLANT COST INDEX (CEPCI) 525

(1957-59 = 100) Feb.‘07 Jan.‘07 Feb.‘06

Prelim. Final Final Annual Index: 510
CE Index 512.5 509.7 480.7 1999 = 390.6
Equipment 605.7 602.8 561.7
Heat exchangers & tanks 564.7 556.9 524.6 2000 = 394.1 495

Process machinery 589.5 586.1 533.6 2001 = 394.3

Pipe, valves & fittings 713.8 724.9 662.5
2002 = 395.6 480
Process instruments 425.6 428.3 391.9
Pumps & compressors 821.5 805.4 771.5 2003 = 402.0
Electrical equipment 419.1 419.4 386.2 2004 = 444.2 465
Structural supports & misc 640.5 631.3 604.7
2005 = 468.2
Construction labor 310.5 310.8 303.6
Buildings 473.2 471.0 460.3 2006 = 499.6 450
Engineering & supervision 361.4 352.0 349.6 J F M A M J J A S O N D

CURRENT BUSINESS INDICATORS LATEST PREVIOUS YEAR AGO

CPI output index (2000 = 100)1 Mar.‘07 = 107.9 Feb.‘07 = 107.0 Jan.‘07 = 107.5 Mar.‘06 = 107.8
CPI value of output, $ billions Feb.‘07 = 1,417.1 Jan.‘07 = 1,409.6 Dec.‘06 = 1,454.8 Feb.‘06 = 1,438.5
CPI operating rate2, % Mar.‘07 = 81.8 Feb.‘07 = 81.2 Jan.‘07 = 81.6 Mar.‘06 = 82.5
Construction cost index (1967 = 100) Apr.‘07 = 732.2 Mar.‘07 = 731.4 Feb.‘07 = 733.6 Apr.‘06 = 716.4
Producer prices, industrial chemicals (1982 = 100) Mar.‘07 = 216.0 Feb.‘07 = 214.3 Jan.‘07 = 211.2 Mar.‘06 = 206.1
Index of industrial activity (1992 = 100) Mar. 31,‘07 = 291.9 Mar. 24,‘07 = 291.6 Mar. 17,‘07 = 291.4 Apr. 1,‘06 = 270.4
Hourly earnings index, chemical & allied products (1992 = 100) Mar.‘07 = 142.2 Feb.‘07 = 142.4 Jan.‘07 = 143.6 Mar.‘06 = 143.5
Productivity index, chemicals & allied products (1992 = 100) Mar.‘07 = 132.9 Feb.‘07 = 132.7 Jan.‘07 = 132.6 Mar.‘06 = 128.4

CPI OUTPUT INDEX (2000 = 100) CPI OUTPUT VALUE ($ Billions) CPI OPERATING RATE (%)
111 1600 85

108 1520 83

105 1440 81

102 1360 79

99 1280 77

96 1200 75
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
Current business indicators provided by DRI-WEFA, Lexington, Mass.

Vatavuk Air Pollution Control Cost MARSHALL & SWIFT EQUIPMENT COST INDEX
IndexEs (VAPCCI) (1st quarter 1994 = 100.0) (1926 = 100) 1st Q 4th Q 1st Q 1390
CONTROL 2004 2005 2nd Q 3rd Q 4th Q 1st Q 2007 2006 2006 1375
DEVICE Avg.1 Avg. 2006 2006 20062 20072 M & S Index 1,362.7 1,353.8 1,294.6
1360
Process industries, average 1,410.0 1,399.2 1,334.4
Carbon adsorbers 135.9 149.1 157.4 162.1 163.0 161.8
Cement 1,398.8 1,385.8 1,329.2 1345
Catalytic incinerators 148.6 167.9 211.9 217.4 218.4 219.6
Chemicals 1,384.9 1,374.1 1,310.4 1330
Electrostatic precipitators 124.0 132.1 137.1 143.5 142.8 142.9
Clay products 1,378.1 1,367.6 1,310.4
Flares 1315
134.2 150.1 155.7 160.1 161.7 161.4 Glass 1,309.5 1,299.5 1,237.7
Gas absorbers 121.8 128.2 134.3 135.8 135.5 136.4 1300
Paint 1,414.2 1,404.6 1,339.9
Refrigeration systems 119.6 128.9 134.9 138.3 139.7 142.0 Paper 1,331.6 1,324.2 1,270.6 1285
Regenerative thermal Petroleum products 1,497.9 1,486.3 1,410.3 1270
oxidizers 124.0 131.6 135.9 139.0 139.7 141.5 Rubber 1,463.1 1,449.4 1,390.1 1255
Thermal incinerators 121.9 133.2 141.1 146.4 147.7 149.4 Related industries
1240
Wet scrubbers 144.0 157.2 162.8 167.6 169.1 170.3 Electrical power 1,319.5 1,310.1 1,219.2
Mining, milling 1225
1,427.7 1,413.5 1,368.4
1. Effective fourth quarter 2003, the Bureau of Labor Statistics (BLS) converted Refrigeration 1,648.2 1,638.5 1,562.4 1210
all of the Producer Price Indexes (PPI’s) from the Standard Industrial 1st 2nd 3rd 4th
Steam power 1,369.1 1,359.8 1,285.3 Quarter
Classification (SIC) to the North American Industrial Classification System
(NAICS). During this conversion, many PPI’s were abolished—among
them most of the PPI’s that had been key inputs to the VAPCCI’s. As a Annual Index:
consequence, substitute PPI inputs had to be found. The VAPCCI’s for fourth
quarter 2003 and subsequent quarters reflect these substitutions. 1999 = 1,068.3 2001 = 1,093.9 2003 = 1,123.6 2005 = 1,244.5

2. All fourth quarter 2006 and first quarter 2007 indexes are preliminary. 2000 = 1,089.0 2002 = 1,104.2 2004 = 1,178.5 2006 = 1,302.3

96 Chemical Engineering www.che.com may 2007

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