Cartridge Filters Insights No

This bi-weekly Cartridge Filters Insight provides excerpts from the McIlvaine Cartridge Filters: World Market. It also provides excerpts from related publications. The market report provides the latest forecasts, market shares and insights relative to technology and opportunities.

· U.S. Cartridge Companies Are Becoming International Leaders through Acquisitions

U.S. Cartridge Companies Are Becoming International Leaders through Acquisitions

Three of the world’s top suppliers of liquid filtration cartridges have increased their market share in the last twelve months due to acquisitions. The mergers and market shares are tracked in Cartridge Filters: World Market published by the McIlvaine Company. (www.mcilvainecompany.com)

These leading companies are expanding vertically by acquiring suppliers of vessels and media. They are expanding their application scope by buying competitors who are strong in specific industries, and they are expanding their geographic reach with acquisition of companies with regional strength.

Pall Corporation has acquired Filter Specialists, Inc. (FSI), a worldwide supplier of filtration products and solutions based in Michigan City, Indiana.

“The addition of FSI’s products and technologies to our existing portfolio of filtration solutions is a great fit for Pall. FSI’s offerings are very complementary and add solutions to our existing addressable markets, in addition to covering markets where we currently don’t have complete solutions,” said Larry Kingsley, Pall Chairman and CEO. “The FSI products and markets tie nicely to our current plans of creating value for our customers, particularly in the oil and gas, chemical, and other industrial markets.”

FSI is operating primarily in the industrial paint, chemical, petrochemical, oil and gas, and food and beverage markets. For Pall this is a good fit since FSI is a major supplier of vessels which house the cartridges.

Clarcor, Inc has completed the acquisition of Stanadyne Corp’s filtration business from Kohlberg & Co LLC, in a US$325 million deal. Stanadyne’ supplies original equipment (OE) and replacement fuel filtration products primarily for off-road, agricultural and construction applications. With 2013 revenues of approximately US$107 million and around 200 employees, the filtration business has manufacturing facilities in Washington, North Carolina and start-up operations in India.

Christopher Conway, Clarcor’s chairman, president and chief executive officer (CEO) said: “By combining this business with the OE capabilities of the other companies in our Engine/Mobile segment, Baldwin Filters and Clark Filter, we believe we will have the scale and focus to better serve OE customers and grow this side of our business in a meaningful fashion.”

Filtration Group, a portfolio company of Madison Capital Partners has grown to include AG Industries, Air Flow Technology, Buffalo Filter, Chemco Manufacturing, Clear Edge Filtration, Dafco Filtration Group, Filtrair, Filtran, Filtration Group, Global Filter, Jonell, Porex, Universal Air Filter and Waco Filters. AG Industries, Buffalo Filter, Clear Edge Filtration, Jonell and Porex were all acquired during 2013.

The latest data shows the U.S. economy contracted significantly more than previously estimated in the first quarter of this year.

The Bureau of Economic Analysis released its third and final estimate of real gross domestic product for the first three months of 2014. The release showed output in the U.S. declining at an annual rate of 2.9%. This is relative to fourth quarter 2013, when real GDP grew 2.6%.

The final number is also down from BEA’s negative 1% second estimate released last month and even more sharply from its first estimate that showed GDP growing 0.1%. While this makes Q1 the economy’s worst since Q1 2009, the heart of the recession, economists were anticipating the further downward revision.

“The bad weather in much of the U.S. in early 2014 was a significant drag on the economy, disrupting production, construction, and shipments, and deterring home and auto sales,” wrote PNC Senior Economist Gus Faucher in a note out prior to the release. “But data show growth rebounding in the second quarter, with improvements in home and auto sales and residential construction.”

The major stock indices slipped into the red as the opening bell approached but quickly returned to positive territory. This seems to indicate that investors were also writing off the contraction as temporary.

In an interview following the release Stephen Auth, Chief Investment Officer at Federated Investors, called the revision “pretty incredible” but says that underlying trends have shown improvement that has simply been “masked” by the weather. He expects second quarter GDP growth to come in north of 4% and continual market gains.

The revision, BEA explained in a release, was largely due to a smaller than previously estimated increase in personal consumption and larger than previously estimated decline in exports. The 2.9% decrease in real GDP reflected the negative contribution from exports as well as declines in private inventory investment, both residential and nonresidential, fixed investment and lower local government spending. The rate was also negatively impacted by an increase in imports but partially offset by an increase in federal government spending (the first in a year and a half) and in personal consumption. (The remaining text is not included in this sample.)

1) HSBC raised its 2014 GDP forecast from 7.4% to 7.5%, surprised by the strong recovery especially in June. Monthly fixed asset investment and industrial production grew by 17.9% and 9.2% respectively, compared with 16.9% and 8.8% in May.

The strong recovery was largely driven by government policies. State-owned bank lending picked up strongly; fiscal spending grew by almost 25% in both May and June, up from an average of 8% from January through April. HSBC believes China’s GDP growth could exceed its 7.5% forecast if more easing comes over the next few months. “Policies, particularly fiscal policy, will likely be more supportive in 2H as it is traditionally the spending season,” wrote HSBC economists Qu Hongbin and Julia Wang.

China’s property sector continues to be the main downside risk, says HSBC, but “our baseline case remains that policymakers can offset the negative impact given that they have a broad range of policy tools at their disposal.”

In June, property prices in 55 out of 70 cities surveyed fell, up from 35 cities in May and just 8 in April. Local governments have been taking steps to prop up real estate markets, using measures such as abolishing local resident purchase requirements. (The remaining text is not included in this sample.)

German gross domestic product stalled in the second quarter as geopolitical concerns weighed on industrial output and construction weakened after a weather-induced boom in the first three months of the year, the Bundesbank said.

The warning, contained in the central bank's monthly bulletin, is an indication that the euro zone will struggle to improve on the first quarter's meager growth rate.

Germany accounts for about 30% of the bloc's GDP. During the first quarter, euro zone GDP expanded just 0.8% at an annualized rate, or 0.2% on a quarterly basis, despite annualized growth of 3.3% in Germany. Excluding Europe's largest economy, the euro zone economy will have contracted slightly in the first quarter.

"Considering that the service sector is likely continued to expand, the real, adjusted gross domestic product (in Germany) was likely unchanged from the first quarter," the Bundesbank said. "Geopolitical tensions are reflected not only in weaker future indicator surveys, but also in ebbing demand for interim goods." (The remaining text is not included in this sample.)

A complete analysis of GDP and Monthly Updates for individual countries is included as part of Cartridge Filters: World Market.

Oil and Gas Project Tracking is available at a discount to Cartridge Filters: World Market subscribers.

Treatment chemicals are an important addition to most oil and gas processes. Access to details on worldwide oil and gas projects is provided at a substantial discount to Cartridge Filters: World Market subscribers.

Praxair Signs Long-term Supply Agreement and Builds Presence in China Petrochemical Park (Article Dated: 8/1/2014)

Petrochemical Expansion to Drive Growth of Reliance for Next Few Years (Article Dated: 7/31/2014)

Tesoro Plans to Boost Xylene Recovery at U.S. West Coast (Article Dated: 7/31/2014)

Egypt’s Petroleum Ministry Proposes Petrochemical Projects worth $540 Mln to UAE (Article Dated: 7/31/2014)

Petrochemical Facility to Open in Iran’s Mazandaran Province (Article Dated: 7/31/2014)

CB&I Announces $50 Mln Award in Oman for Heaters and Steam Reformer (Article Dated: 7/31/2014)Sadara Lets Contract for Jubail Petrochemical Complex to Rolta India (Article Dated: 7/31/2014)

U.S. Specialty Chemicals Leader Renews Plant Services Contract with CB&I (Article Dated: 7/30/2014)

Argus says U.S. to Become Net Propylene Exporter by 2017 (Article Dated: 7/30/2014)

Saudi's Ma'aden Signs $5 Bln Financing for Phosphate Scheme (Article Dated: 7/30/2014)

Chinese Firm,Shandong Yuhuang Chemical Makes $1.85 Bln Capital Investment in Louisiana Methanol Plant (Article Dated: 7/30/2014)

Ineos Buys Out BASF for Full Control of Styrolution JV (Article Dated: 7/30/2014)

Japan's Showa Denko Halts Naphtha Cracker after Compressor Problem (Article Dated: 7/29/2014)

Mexichem to Operate $650 Mln Cogeneration Plant for Pemex (Article Dated: 7/29/2014)

Plastics Producer SABIC Agrees to Reduce Harmful Air Pollution (Article Dated: 7/29/2014)

SABIC, SK Global Chemical Enter $595 Mln JV to Manufacture High-performance Polyethylene Products (Article Dated: 7/29/2014)

INEOS Innovene™ S Process Selected for New Petrochemical Complex in Turkmenistan (Article Dated: 7/28/2014)

Univar Breaks Ground on New Oil and Gas Facility in Elmendorf, TX (Article Dated: 7/28/2014)

UOP Technology Selected for Propylene in Southeast Asia (Article Dated: 7/28/2014)

Koch Industries Rides U.S. Shale Boom with $2.1 Bln PetroLogistics Buy (Article Dated: 7/28/2014)

Dow Chemical Sees Competitive Disadvantage for European Rivals Due to Shale Gas Extraction (Article Dated: 7/28/2014)

Turkmenistan to Invest $10 Bln in Kiyanly Petrochemicals Project (Article Dated: 7/28/2014)

Persian Gulf Petrochem Company Offers to Build NGL Plants (Article Dated: 7/25/2014)

SABIC and Korea’s SK Global Sign $595 Mln JV Agreement (Article Dated: 7/25/2014)

Jacobs Wins Engineering Package from Borealis on Belgium Chemical Sites (Article Dated: 7/25/2014)

SABIC Plans Crude-to-chemicals Facility in Saudi Arabia (Article Dated: 7/24/2014)

Bechtel Completes Installation of Modules for LNG Train at Curtis Island GLNG Facility (Article Dated: 7/21/2014)

China Huaneng's Changji SNG Plant One of Many More Approvals in 2013 (Project Dated: 7/18/2014)

These sales leads are part of Oil, Gas, Shale and Refining Markets and Projects, and are issued bi-weekly. As a subscriber to Cartridge Filters: World Market you receive a 30 percent discount for this service.

This includes only projects where there was an update during the month. There are thousands of projects in the database.

New power generation projects are tracked in two publications. Fossil and Nuclear Power Generation includes both market forecasts and project data. World Power Generation Projects has just the project data.

Project Title	First Entry Date	Location	Startup date
Bin Qasim power plant	7/1/2014	Pakistan	2018
Jaworzno power plant-Tauron	7/1/2013	Poland	2019
Thar II power plant-Karachi Electric Supply/Sindh Engro Coal Mining	5/1/2013	Pakistan	2019
Mariveles expansion-GN Power	3/1/2013	Philippines	2018
CHP5 Ulaanbaatar CFB power plant	7/1/2012	Mongolia	2018
Nam Dinh 1 CFB power plant--Vinacomin	1/1/2010	Vietnam	2020
Yamunanagar (Panipat) supercritical addition-Haryana Power Generation	11/1/2009	India	Unknown
Barakah 1-4 nuclear power plant	6/1/2009	United Arab Emirates	2020
Masinloc 2-AES Philippines	9/1/2007	Philippines	2018
Chhattisgarh (Lara) 1,2 ultra mega power project-NTPC	1/1/2005	India	2016
Holcomb (Garden City)(Sand Sage)supercritical power plant-Sunflower Electric	11/1/2001	KS	Unknown
Pagbilao 3 CFB expansion-Aboitiz Power and TeaM Energy Philippines	11/1/2000	Philippines	2017