Sharp drop in capex to hit process
15 Jan 2000
Capital expenditure in the chemical industry will decline steeply next year, according to a report from market analysts MBD. Most other process sectors will also see declines, notably water and sewerage.
Chemical industry capital spend will reach £2.5billion this year, a 5 per cent decrease on the previous year, says the report. Process plant investment will fall by the same amount, to £1.9billion. MBD predicts 17 per cent drops in both capex and plant expenditure in 2000. The market will then hold steady until 2003, when rises of 9 per cent for capex and 12 per cent for plant expenditure are expected.
The largest proportion of the projected 1999-2000 spending - almost a third - is on capacity expansions, with debottlenecking and new projects both on half that amount.
