MRO Magazine

Maintenance spending on upswing in chemical processing industry

Houston, TX -- May 9, 2002 -- The second quarter of 2002 is turning out to be only marginal in terms of capacity ut...


Houston, TX — May 9, 2002 — The second quarter of 2002 is turning out to be only marginal in terms of capacity utilization and available capital dollars for investment, according to research by Industrialinfo.com. However, maintenance spending for the chemical processing industry (CPI) is heading in the opposite direction.

Industrialinfo.com has identified 112 planned plant maintenance turnarounds at chemical plants in the U.S. and Canada for the second quarter of 2002 totalling almost $375 million in value, a significant increase compared to the first quarter of 2001 when there were 48 turnaround projects totaling an estimated $121 million.

This increase in maintenance spending is in part the result of slow performance by the domestic economy and the reluctance of producers to invest capital dollars until an economic improvement can be clearly seen on the horizon, the company says.

Maintenance turnarounds for many plants equal lost production and the depletion of inventories, forcing many producers to outsource trades, crafts, and material needs to expedite planned and unplanned turnarounds.

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“Although the average turnaround is generally 10 to 14 days in length with a value of approximately two to three million dollars, we have identified several planned turnarounds that will to take up to 20 or 30 days to complete and exceed $4 million in total cost,” commented Trey Hamblet, chemical group manager with Industrialinfo.com.

“Maintenance spending will continue to increase as producers focus on achieving maximum efficiencies from existing assets. Currently, we are tracking over 190 maintenance turnarounds planned to take place during the third and fourth quarters of this year,” he said.

Industrialinfo.com is a service of Industrial Information Resources Inc. (IIR) of Houston Tex., which provides market intelligence covering the industrial process, manufacturing, and energy related markets. For more information, visit www.industrialinfo.com.