Cost Data

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 paraxylene 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 corrosioncontrol 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 n competition authorities.  Dorothy Lozowski

For additional news as it develops, please visit www.che.com May 2007; VOL. 114; NO. 5 Chemical Engineering copyright @ 2007 (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: 212621-4674, Fax: 212-621-4694. Subscription rates: $59.00 U.S. and U.S. possessions, Canada, Mexico; $179 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 619, Mt. Morris, IL 61054-7580. Phone: 815-734-1289, Fax: 815-734-5882, email: [email protected]. Change of address, two to eight week notice requested. For information regarding article reprints only, please contact Client Services, [email protected]; Tel: 800-777-5006 (toll-free within the US) or 301-354-2101; fax: 301-309-3847. Contents may not be reproduced in any form without written permission. Publications Mail Product Sales Agreement No. 40558009. 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



2006

2007

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

CHEMICAL ENGINEERING PLANT COST INDEX (CEPCI) (1957-59 = 100)

Feb.‘07 Prelim. 512.5 605.7 564.7 589.5 713.8 425.6 821.5 419.1 640.5 310.5 473.2 361.4

CE Index

Equipment Heat exchangers & tanks Process machinery Pipe, valves & fittings Process instruments Pumps & compressors Electrical equipment Structural supports & misc Construction labor Buildings Engineering & supervision

Jan.‘07 Final 509.7 602.8 556.9 586.1 724.9 428.3 805.4 419.4 631.3 310.8 471.0 352.0

Feb.‘06 Final 480.7 561.7 524.6 533.6 662.5 391.9 771.5 386.2 604.7 303.6 460.3 349.6

CURRENT BUSINESS INDICATORS

LATEST

CPI output index (2000 = 100)1 CPI value of output, $ billions CPI operating rate2, % Construction cost index (1967 = 100) Producer prices, industrial chemicals (1982 = 100) Index of industrial activity (1992 = 100) Hourly earnings index, chemical & allied products (1992 = 100) Productivity index, chemicals & allied products (1992 = 100)

Mar.‘07 Feb.‘07 Mar.‘07 Apr.‘07 Mar.‘07 Mar. 31,‘07 Mar.‘07 Mar.‘07

111

CPI OUTPUT INDEX (2000 = 100)

1600

525

Annual Index:

510

1999 = 390.6 2000 = 394.1

495

2001 = 394.3 2002 = 395.6

480

2003 = 402.0 2004 = 444.2

465

2005 = 468.2 2006 = 499.6

450

= 107.9 = 1,417.1 = 81.8 = 732.2 = 216.0 = 291.9 = 142.2 = 132.9

Feb.‘07 = Jan.‘07 = Feb.‘07 = Mar.‘07 = Feb.‘07 = Mar. 24,‘07 = Feb.‘07 = Feb.‘07 =

J

CPI OUTPUT VALUE ($ Billions)

A S O N D

YEAR AGO

107.0 Jan.‘07 = 107.5 Mar.‘06 = 107.8 1,409.6 Dec.‘06 = 1,454.8 Feb.‘06 = 1,438.5 81.2 Jan.‘07 = 81.6 Mar.‘06 = 82.5 731.4 Feb.‘07 = 733.6 Apr.‘06 = 716.4 214.3 Jan.‘07 = 211.2 Mar.‘06 = 206.1 291.6 Mar. 17,‘07 = 291.4 Apr. 1,‘06 = 270.4 142.4 Jan.‘07 = 143.6 Mar.‘06 = 143.5 132.7 Jan.‘07 = 132.6 Mar.‘06 = 128.4

85

1520

83

105

1440

81

102

1360

79

99

1280

77

CPI OPERATING RATE (%)

75

1200

J F M A M J J A S O N D

F M A M J

PREVIOUS

108

96

J

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 IndexEs (VAPCCI) (1st quarter 1994 = 100.0) CONTROL DEVICE

2004 2005 2nd Q 3rd Q 4th Q 1st Q

Carbon adsorbers

135.9 149.1 157.4 162.1 163.0 161.8

Catalytic incinerators

148.6 167.9 211.9 217.4 218.4 219.6

Electrostatic precipitators

124.0 132.1 137.1 143.5 142.8 142.9

Flares

134.2 150.1 155.7 160.1 161.7 161.4

Gas absorbers

121.8 128.2 134.3 135.8 135.5 136.4

Refrigeration systems

119.6 128.9 134.9 138.3 139.7 142.0

Regenerative thermal oxidizers

124.0 131.6 135.9 139.0 139.7 141.5

Thermal incinerators

121.9 133.2 141.1 146.4 147.7 149.4

Wet scrubbers

144.0 157.2 162.8 167.6 169.1 170.3

Avg.1 Avg.

2006 2006 20062 20072

1. Effective fourth quarter 2003, the Bureau of Labor Statistics (BLS) converted all of the Producer Price Indexes (PPI’s) from the Standard Industrial 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 consequence, substitute PPI inputs had to be found. The VAPCCI’s for fourth quarter 2003 and subsequent quarters reflect these substitutions. 2. All fourth quarter 2006 and first quarter 2007 indexes are preliminary.

96

MARSHALL & SWIFT EQUIPMENT COST INDEX (1926 = 100)

1st Q 4th Q 2007 2006 M & S Index 1,362.7 1,353.8 Process industries, average 1,410.0 1,399.2 Cement 1,398.8 1,385.8 Chemicals 1,384.9 1,374.1 Clay products 1,378.1 1,367.6 Glass 1,309.5 1,299.5 Paint 1,414.2 1,404.6 Paper 1,331.6 1,324.2 Petroleum products 1,497.9 1,486.3 Rubber 1,463.1 1,449.4 Related industries Electrical power 1,319.5 1,310.1 Mining, milling 1,427.7 1,413.5 Refrigeration 1,648.2 1,638.5 Steam power 1,369.1 1,359.8

1st Q 2006 1,294.6 1,334.4 1,329.2 1,310.4 1,310.4 1,237.7 1,339.9 1,270.6 1,410.3 1,390.1

1390 1375 1360 1345 1330 1315 1300 1285 1270 1255

1240 1,219.2 1225 1,368.4 1,562.4 1210 1st 2nd 3rd 4th 1,285.3 Quarter

Annual Index: 1999 = 1,068.3 2000 = 1,089.0

2001 = 1,093.9 2002 = 1,104.2

2003 = 1,123.6 2004 = 1,178.5

2005 = 1,244.5 2006 = 1,302.3

Chemical Engineering www.che.com may 2007

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