More major resources projects in Australia continued to be shelved as commodity prices remain low. The latest to be added to the list of postponed or cancelled projects is the $650-million ammonium nitrate plant of chemical giant Incitec Pivot.
India is home to 30 of the 54 fastest growing chemical companies on the IBT1000 list, followed by the Greater China and South Korea. Although only two U.S. companies operating in this sector made our list, one outshined its peers with a compound annual growth rate (CAGR) of 141 percent over the past three years, compared with an average CAGR of 32 percent for the 54 companies. In 2010, the U.S. chemicals market had total revenue of $670 billion, representing a CAGR of 0.1 percent for the period spanning 2006-2010. The base chemicals segment was the market's most lucrative in 2010, with total revenue of $222.2 billion, equivalent to 33.2 percent of the market's overall value. The performance of the market is forecast to accelerate, with an anticipated CAGR of 6.9 percent for the five-year period 2010-2015, which is expected to drive the market to a value of $934 billion by the end of 2015. *Spotlight companies: Alujain Corp., Green Plains Renewable Energy Inc. and Diamines & Chemicals Ltd. Source: Datamonitor
Incitec placed on hold the plans to build the facility on Kooragang Island in Newcastle. It would have been built near the Orica plant in the same island.
It was supposed to produce explosives for use of the mining industry in Hunter.
Prior to the announcement of the project shelving, Stockton residents criticised the issue of an Environmental Impact Statement to the venture due to its alleged failure to address some of their concerns such as the risk of explosion as well as noise and air impacts and potential devaluation of properties.
Incitec informed the Australian Stock Exchange that it suspended the $17-million feasibility study for the plant and will postpone making a decision on it for the next two years.
The chemical firm explained its move to the expected reduction in demand for ammonium nitrate and the soaring cost of construction in Australia.
Incitec, which announced the plans for the ammonium facility in 2011, said the project failed to meet its strict financial hurdles.
Follow us on LinkedIn