Pump Summit Shaping Up For Next June
The steering committee for Pump Summit next June in Houston tentatively selected nine workshop tracks, plus plenary sessions and a training program. HI will be heavily involved as will an impressive group of pump experts from industry. McIlvaine reported on the Pump Summit in Dusseldorf last December. This conference was held in conjunction with Valve World. The same format will be repeated in 2016. The U.S. version will be in the same location as Valve World Americas being held this week at the GRB Convention Center but on an alternate year. There was record attendance this week at the Valve Expo. The McIlvaine speech is available at: http://www.mcilvainecompany.com/Decision_Tree/subscriber/Tree/DescriptionTextLinks/VWspeech_Final_July15.pdf
World Water and Wastewater Treatment Chemicals Business to exceed $30 billion by 2019
Revenues for water and wastewater treatment chemicals are projected to increase to over $30 billion by 2019. This is the latest forecast in N026 Water and Wastewater Treatment Chemicals: World Market. (www.mcilvainecompany.com)
World Water and Wastewater Treatment Chemicals Market ($ Millions)
Industry 2019
Total 30,223
Chemical 1,005
Electronics 467
Food 969
Metals 1,014
Mining 611
Oil & Gas 1,058
Other Industries 1,506
Pharmaceutical 421
Power 5,708
Pulp & Paper 2,337
Refining 3,428
Wastewater 5,116
Water 6,583
Municipal water treatment plants will be the largest market. The world’s naturally purified drinking water sources are shrinking while demand is increasing. Countries around the world are turning to contaminated sources. This requires substantial investments in water treatment chemicals.
Municipal wastewater plants will be the second largest market. Requirements range from disinfectants to polymers to separate sludge. Many countries are installing secondary wastewater treatment plants. By 2019 world secondary wastewater treatment capacity is expected to exceed 170,000 million gallons per day.
The third largest market is power. Power plant cooling requires chemicals to prevent scaling of tower internals. Boiler feedwater must be ultrapure. The continuing expansion of coal-fired power generation in Asia will boost this segment of the market. Zero liquid discharge requirements in Europe and the U.S. will also provide a stimulus.
For more information on N026 Water and Wastewater Treatment Chemicals: World Market http://home.mcilvainecompany.com/index.php/markets/27-water/449-n026-water-and-wastewater-treatment-chemicals.
China Market for Flow Control and Treatment is Tricky
The recent Chinese stock market meltdown has many flow control and treatment product and service suppliers re-evaluating their forecasts for this country. The impact on Chinese based suppliers has to be viewed in a different light than impact on the international supplier. “The implications are mixed” states the McIlvaine Company in N064 Air/Gas/Water/Fluid Treatment and Control: World Market. (www.mcilvainecompany.com)
The worry is that China will follow the same path as Japan. In 1991 it was widely predicted that Japan would soon pass the U.S. as the world’s largest economy. The stock market was priced at seventy times earnings and the government was recklessly pushing growth. The difference with China is that the market value is twenty-three times earnings, so this is some comfort. There are other similarities and differences but the conclusion is that China will not suffer the same fate as Japan. However, growth is not going to be as robust in the next decade as in the last.
In general the news is worse for local suppliers than for international. The demand for primary metals, power and heavy industrial products will not grow at previous rates. However, the market share for international suppliers may go up instead of down. Emphasis on performance, energy saving and reliability will better serve the suppliers of better products. If the international suppliers have the best offering, they will have a better chance than in a period where capacity growth trumped quality.
International suppliers may find that prices do not fall but instead rise. The reason is that the cost of systems and products has been influenced by the easy money available to flow control and treatment companies. This is coming to an end. Some Chinese suppliers may have been involved in margin trading by using their stock as collateral for additional bank loans. The lower stock value will put severe pressure on such suppliers. The lower quality producers are likely to disappear.
The European air pollution market surge in the 1980s and early 1990s provides some insight. Large numbers of EU pollution control companies were formed. They capitalized on EU regulations which generated a big domestic market. Investors rationalized that these EU companies would then move on to dominate the world market. It did not happen. Many of these companies were dissolved and only a few e.g. Andritz and Clyde Bergemann went on to become international market leaders. None of the European companies has achieved the international position of Mitsubishi or Babcock & Wilcox. (Alstom is a special case but is now part of GE and was originally the U.S. based Combustion Engineering.)
The biggest success in the Chinese market by international suppliers will be by those companies supplying total solutions. Pentair valves are used in many Chinese pulse jet dust collectors. The reason is that Pentair makes specialized valve systems and knows how to design them to maximize the cleaning capability. Semiconductor manufacturers look to reliable suppliers to solve their toxic fume problems. Pharmaceutical companies rely on Pall and other filter manufacturers to help them make safe and effective drugs.
Whether it is a complete system or a component, understanding the processes will be the key to success for international suppliers in China.
For more information on N064 Air/Gas/Water/Fluid Treatment and Control: World Market, click on: http://home.mcilvainecompany.com/index.php/markets/27-water/445-n064-air-gas-water-fluid-treatment.
Headlines for Utility E-Alert – July 10, 2015
UTILITY E-ALERT
#1231– July 10, 2015
Table of Contents
COAL – US

 Supreme Court Remand probably will not eliminate the consumption of One Pound of Activated Carbon

COAL – WORLD

 Chinese assure completion of 1,320 MW Sahiwal Coal-fired Power Plant
 Jaks Resources, China Power in JV to develop 1,200 MW Thermal Power Plant in Hai Duong Province, Vietnam
 Meralco in talks for Bicol Power Plant’s Coal Production
 Jiangxi Huaneng Anyuan Power’s 660 MW Coal-fired Unit No. 1 put into Operation
 Sarangani Energy Project Manager confirms delivery of 105 MW Coal-fired Power Plant in Maasim, Sarangani

GAS/OIL – US

• Coal Miners Union opposes planned West Virginia Natural gas-fired Power Plant
• New 650 MW Combined Cycle Power Plant dedicated in Kentucky
• Exelon starts developing 1GW Combined Cycle Gas Turbine Unit in Texas
• Exelon Generation’s New Maryland Natural Gas-fired Power Plant Now Operational
• NTE Energy’s New Natural Gas Power Plant to break Ground Next Month
• FPL announces Plans to modernize its Power Plant Fleet

GAS/OIL – WORLD

• Shilands seek Zera approval to build gas-fired Power Plant in Mutare, Zimbabwe
• GE selected to reduce Emissions at Beijing Taiyanggong Power Plant
• Gemma Power Systems enters EPC Agreement for Combined Cycle Power Plant with Moxie Freedom LLC

NUCLEAR
 Will Putin pay for $100 Billion South African Nuclear Power Plants?

BUSINESS

 Nederman receives Three Orders in the Americas with a Total Value of SEK 75 Million
 CB&I announces Plant Services Contract with Omaha Public Power District
 Minnesota Power lays out the Next Steps in its Energy Forward Plan
 PNM files Final San Juan Generating Station Agreements with NMPRC
 Wisconsin Energy completes acquisition of Integrys to form WEC Energy Group
 Let’s talk at Valve World Houston next Wednesday or Thursday
 Liquid and Air Filter Element Solution Provider’s Revenue Potential will exceed $32 Billion this Year
 Change Environmental Regulatory Policy to Foster R&D and Cost-Effectiveness

HOT TOPIC HOUR

 “Mercury Removal Options” is the Hot Topic Hour on July 23, 2015 at 10 a.m. CDT
 Upcoming Hot Topic Hours
For more information on the Utility Tracking System, click on: http://home.mcilvainecompany.com/index.php/databases/2-uncategorised/89-42ei
McIlvaine Hot Topic Hour Registration
On Thursdays at 10:00 a.m. Central time, McIlvaine hosts a 90 minute web meeting on important energy and pollution control subjects. These Webinars are free of charge to owner/operators of the plants. They are also free to McIlvaine Subscribers of Power Plant Air Quality Decisions and Utility Tracking System. The cost for others is $300.00 per webinar.
See below for information on upcoming Hot Topic Hours. We welcome your input relative to suggested additions.
DATE SUBJECT DESCRIPTION
July 23, 2015 Mercury Removal Options More Information
August 6, 2015 Gas Turbine Emission Control More Information
August 20, 2015 Total Solution Options More Information
Click here for the Subscriber and Power Plant or Cement Plant Owner/Operator Registration Form
Click here for the Non-Subscribers Registration Form
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You can register for our free McIlvaine Newsletters at: http://home.mcilvainecompany.com/index.php?option=com_rsform&formId=5

Bob McIlvaine
President
847-784-0012 ext 112
rmcilvaine@mcilvainecompany.com
www.mcilvainecompany.com