U.S. Gears Up for $2.4 Billion in Maintenance in Third-Quarter 2017
Industrial Info is tracking more than $2.4 billion of maintenance projects set to kick off in the U.S. during the third quarter of this year. This compares to $3 billion in the second quarter. The Chemical Processing Industry, with more than $500 million in planned turnarounds, leads other industries in terms of value. This is followed by the Power Industry, with $468 million in planned maintenance projects, and the Industrial Manufacturing Industry, with $330 million.
Compared to the second quarter of this year, the value of Power turnarounds will drop significantly in the third quarter, as power generators generally take their units offline before summer air conditioning season begins. The Terminals Industry is showing a significant drop in maintenance activity. Although no terminals inspection/maintenance project had a value above $3 million in the second quarter, the number of projects is planned to decline significantly between the second and third quarters of this year.
Seasonal movement also accounts for a large upswing in Industrial Manufacturing projects between the second and third quarters. The bulk of these are from automotive assembly and automotive parts manufacturing plants. “Typically, the automotive sector takes down its plants in July and December for their maintenance programs, around the Fourth of July and Christmas,” said David Pickering, Industrial Info’s vice president of research for the Industrial Manufacturing Industry. “We always have a large influx of maintenance projects during these times.” Seasonal movements also affect the Refining Industry, which typically has spring and fall turnarounds.
Among the planned third-quarter Chemical Processing projects is the maintenance turnaround on Dow Chemical Company’s (NYSE:DOW) (Midland, Michigan) 1.2-billion-pound-per-year ethylene unit at the company’s plant in Hahnsville, Louisiana. The turnaround is expected to last 50 to 60 days. In Georgia, PCS Nitrogen Incorporated (Augusta, Georgia) plans to perform major planned maintenance on a 2,600-ton-per-day ammonia unit and steam utilities during the third quarter. The turnaround is expected to last 35 to 40 days.
Within the Power Industry, coal and natural gas are tied for the value of planned third-quarter turnarounds, at $139 million each, although Industrial Info is tracking 43 planned natural gas-fired outages, compared to coal’s 18. Industrial Info is tracking five planned nuclear outages with an aggregate value of $118 million. Oglethorpe Power Corporation (Juliette, Georgia) is planning a $15 million maintenance outage at its coal-fired Unit 1 facility in Juliette. The 44-day outage will entail normal inspections and repairs to the 891-megawatt (MW) General Electric (NYSE:GE) steam turbine-generator and Alstom CE dry-bottom boiler.
On the natural gas side, Odessa-Ector Power Partners LP (Odessa, Texas) is planning a 6-week maintenance outage for its 567-MW natural gas Block 1 in Odessa. The outage is planned to kick off in September and be wrapped up in early November.
Duke Energy Corporation (NYSE:DUK) is planning a refueling maintenance outage on its 1,129-MW Unit 1 at the McGuire Nuclear Power Station in Huntersville, North Carolina. Inspections and repairs will be performed on the Westinghouse pressurized water reactor and Siemens (NYSE:SI) tandem-compound turbine-generator. Bartlett Nuclear Incorporated (Plymouth, Massachusetts) is acting as on-site contractor for the outage, which is set to kick off in September.
The Industrial Manufacturing Industry includes a variety of sectors, and this is reflected in the 291 turnarounds planned in the industry in the third quarter. Many of these involve automotive sector turnarounds, including Mercedes Benz U.S. International Incorporated’s (Tuscaloosa, Alabama) maintenance turnaround at its sports utility vehicle (SUV) assembly plant in Vance, Alabama. The seven- to 10-day turnaround is planned to kick off this summer and involves normal inspection and repairs to the assembly line and tools, robotics, material-handling equipment and more. General Motors Company (NYSE:GM) (Detroit, Michigan) is gearing up for its semi-annual maintenance shutdown at its vehicle assembly complex in Warren, Ohio, where it manufactures more than 284,000 Chevrolet Cruz automobiles per year.
Outside of the automotive market, Armstrong World Industries (Lancaster, Pennsylvania) is planning to start a series of one- to two-week maintenance turnarounds at its floor tile manufacturing facility in Kankakee, Illinois. An initial turnaround will take place in July, followed by a second in November or December.
These are only a few of the maintenance turnarounds covered in Industrial Info’s Global Project Platform. Click here to learn more.
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