Air Filtration Insights No

· $7 Billion Market for Corrosion Resistant Materials in the Flow and Treatment Markets

4 lane knowledge bridge is the route to increased sales. In the digital age it is very desirable to place your vehicles on the knowledge bridge. Learn more at:

Sales of filters to purify indoor air will be just under $7 billion in 2014. This is the conclusion reached by the McIlvaine Company in Air Filtration and Purification World Markets. (www.mcilvainecompany.com)

Industry	2014
Total	6,991
Bioclean	548
Commercial	1,619
Electronics	672
Metals	1,099
Other Industries	1,615
Power	438
Residential	1,000

The market will grow at a robust rate due to expansions of commercial and industrial markets in Asia. Equally important is the quality upgrading which is raising the price per filter unit. In the power segment air filters are used to prevent contaminants from damaging the high speed gas turbines. Where the medium efficiency filter was the most popular in the past, gas turbine operators are now choosing high efficiency filters. They realize the additional cost to protect the turbine is more than justified.

There is a similar upgrading in the residential and commercial sectors. Whereas low efficiency filters were the leading choice in the past, medium efficiency filters are now selected.

Air filters are used in most industrial plants. Many of these plants are utilizing exhaust hoods, dust collectors and stacks which discharge the air outside the plant, so the inlet air volume is considerably greater than would be required just for conventional HVAC. All of the incoming air must be filtered.

The highest efficiency requirements are in semiconductor plants. As the line sizes on chips are reduced the potential damage from small particles increases, so efficiency needs keep increasing.

For more information on Air Filtration and Purification World Markets, click on:

$7 Billion Market for Corrosion Resistant Materials in the Flow and Treatment Markets

In 2014, suppliers of corrosion resistant materials including FRP, resin-lined steel and stainless steel will generate revenues of just under $7 billion for applications in flow control and treatment. That is the conclusion reached in the McIlvaine online report, Air/Gas/Water/Fluid Treatment and Control: World Markets. (www.mcilvainecompany.com)

Product	$ Millions
Pumps	1,500
Valves	2,000
*Sub-total-Flow*	3,500
Cartridge	40
Sedimentation/ Centrifugation	200
Cross Flow Membranes	300
Macrofiltration	200
*Subtotal- liquid separation*	740
Biological/Oxidation/Destruction	400
Water/Wastewater Chemicals	0
*Subtotal- other water treatment*	400
Filtration/Purification- indoor air	100
Fabric Filter	400
Scrubber	300
Precipitator	100
FGD	400
DeNOx	100
Thermal/Catalytic	300
Fans and Compressors	600
*Subtotal-air and gas*	2,300
Total	6,940

The biggest segment will be valves. Stainless and FRP valves are widely used in the chemical industry. Oil and gas applications where H2S is present also require corrosion resistant materials. New supercritical coal-fired boilers require expensive alloy stainless valves for the steam loop.

Power plant FGD is another big application. There is widespread use of FRP, resin lined steel and various alloys including the expensive C-276.

If you have a product or service which may be higher priced but will be a better value for the Chinese purchaser, then you should be moving forward to carve out a slice of the world’s largest market. If you have not yet acted because of any of the following false assumptions, you need to rethink your strategy.

If you want to learn more about these opportunities, contact Bob McIlvaine at: rmcilvaine@mcilvainecompany.com or 847-784-0012 ext 112.

Project Title	First Entry Date	Location	Startup date
Ras Djinet combined cycle-Societe Algerienne de Production de l/Electricite	6/1/2013	Algeria	Unknown
Ain Arnat combined cycle-Societe Algerienne de Production de l/Electricite	6/1/2013	Algeria	Unknown
6th October addition-Cairo Electricity Production Co.	6/1/2013	Egypt	2014
Bhawanathpur power plant-SAIL	6/1/2013	India	Unknown
Mangrol power plant-Gujarat Industries Power Co.	6/1/2013	India	2017
Hitachinaka expansion-TEPCO	6/1/2013	Japan	2019
Goroubanda diesel power plant	6/1/2013	Niger	2015
Toledo City expansion-Aboitz Power	6/1/2013	Philippines	2016
Ulan-Ude TET-2 power plant	6/1/2013	Russia	Unknown
Amasra power plant-Hattat Holding	6/1/2013	Turkey	Unknown
Grangemouth cogeneration plant	6/1/2013	UK	2017
Seabank 3	6/1/2013	UK	2019
Cynon Valley power plant-Hirwaun Power	6/1/2013	UK	2018
Port Qasim--Burj Group	2/1/2013	Pakistan	2017
Port Everglades modernization-Florida Power & Light	1/1/2013	FL	2016
Tashkent combined cycle modernization	4/1/2012	Uzbekistan	Unknown
Dawei power plant-EGAT	3/1/2012	Myanmar	Unknown
Begunia power plant-Tata Power	2/1/2012	India	Unknown
Brunswick County power plant-Dominion Virginia Power	2/1/2012	VA	2016
Bibiyana 3 combined cycle-Power Development Board	12/1/2011	Bangladesh	2014
Garrison combined cycle-Calpine	11/1/2011	DE	2015
Davao power project-SMC Global Power	10/1/2011	Philippines	2020
Jones expansion (Unit 4)-Xcel	7/1/2011	TX	2013
Calabar Cross River State power plant-Essar African Holdings	6/1/2011	Nigeria	2014
Mukerian power plant-Punjab State Power Corp.	6/1/2011	Pakistan	2020
Dar es Salaam power plant-Tanzania Electric Supply Co Ltd.	6/1/2011	Tanzania	Unknown
Mtwara power plant-Symbion Power	6/1/2011	Tanzania	Unknown
Pio Pico Energy Center peaking-San Diego Gas & Electric	5/1/2011	CA	Unknown
Long Phu II-Vietnam National Coal and Mineral Industries	12/1/2010	Vietnam	2023
Knapsack combined cycle expansion-Statkraft	9/1/2010	Germany	2013

Sirkazhi supercritical power project-Gemac and SPGCPL	5/1/2010	India	2015
Jamshoro-Water and Power Development Authority	5/1/2010	Pakistan	Unknown
Carty combined cycle-Portland General Electric	10/1/2009	OR	2016
Leningrad II 5,6-Energoatom	6/1/2009	Russia	2016
Opole expansion-Polska Grupa Energetyczna	2/1/2009	Poland	Unknown
Avon peaking plant-GDF Suez	6/1/2008	South Africa	2016
Diemen 34 combined cycle-Nuon	4/1/2008	Netherlands	2013
Trailblazer Energy Center-Tenaska	2/1/2008	TX	Cancelled
Tiroda power project-Adani Power	10/1/2007	India	2013
Akkuyu nuclear power plant	6/1/2007	Turkey	2023
Darlipalli supercritical power project-NTPC	5/1/2007	India	Unknown
Tandwa (North Karnapura) power plant-National Thermal Power Corp.	3/1/2007	India	2022
North Chennai-Tamil Nadu Electricity Board	10/1/2006	India	2012
Coega peaking plant (Dedisa)-GDF Suez	6/1/2006	South Africa	2015
Monte Cristi power project-CDEEE	3/1/2006	Dominican Republic	2017
Pocerady combined expansion-CEZ	8/1/2005	Czech Republic	2013
Alaoji combined cycle project	9/1/2004	Nigeria	2014
Edwardsport IGCC plant-Duke	3/1/2004	IN	2013
Holcomb (Garden City)(Sand Sage)supercritical power plant-Sunflower Electric	11/1/2001	KS	Unknown
Good Spring combined cycle power plant-EmberClear		PA	Delayed

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.

For more information, click on: Fossil & Nuclear Power Generation: World Analysis & Forecast

False Assumption	Actual Opportunity
Can’t afford the investment	There are Chinese companies eager to partner if the product is superior.
Can’t trust Chinese partners	There are Chinese companies who are relying on distribution of international products and would not develop their own.
Too much financial risk	There are Chinese companies with deep pockets who will buy F.O.B. your shop and take all financial risk.
Lose intellectual property	Why are Thermo Fisher and all the major drug companies setting up research centers in China?
Create a competitor	The only way to avoid Chinese competition in your international market is to be a big player in China.
Chinese language will be a problem	McIlvaine Decisive Classification in Chinese, 4 lane knowledge bridge, and Global Decisions Orchard eliminate this problem.