Chemical Plant Capacity Use Accelerates as Organics Lead Way: Revived U.S. economy pushes plant use rate for basic chemicals to 68%, highest in two years, and hikes use rates for plastics to 79%, for synthetic fibers to 85%

The chemical industry has eased into a confident upswing following the final shocks of an extraordinarily severe business downturn in the past four years. Recovery has proceeded far faster than expected, even though it has not yet touched all parts of the industry. As a result, the industry may soon have to consider physical expansion in some areas. Aside from profits, the key measure in gauging the industry's recovery and in planning the years just ahead is plant operating levels. So far in the 1980s, capacity use has been so low that the industry's main asset moves have been to clean out antiquated plants and drastically upgrade efficiency in surviving units. As a result, most chemical plants can make money at lower use levels than in the past. So the current rise in plant use rates is doubly meaningful. Although the recovery pace is not the same in all parts of the industry, in the ...