Question-and-Answer Session
Operator
(Operator Instructions). We do have a question from George Gasper – Robert Baird.
George Gasper – Robert Baird
I had a question in terms of product development on the oil seal side. Is there any update that you can give us for the past quarter and what the price prospects might be there?
James E. Hurlbutt
We are seeing pilot activity where we do have orders for pilot floods in 2009. Some of the pilot work that’s been done this year with small scale pilots reconfirm that the enhanced oil recovery technology works in the right field with the right chemistry, generates higher yields of oil. We still expect that market to develop.
People have asked about the impact of lower crude oil. I think most of the people pursing enhanced oil recovery had a longer term view. I don’t think many people feel that crude is not going to be more expensive over the long haul, so even at the current prices enhanced oil recovery is very attractive.
In terms of impact on financial results for 2009, probably not a significant contributor in 2009, but with continued success in pilots’ floods we would expect it to have a more material contribution to earnings in 2010.
George Gasper – Robert Baird
Then just an overview on the expansion domestically and internationally, both on the surfactant side and the polyol side at this point. Can you highlight if you’re making additions at this point in time and when they might be effective?
James E. Hurlbutt
As we previously announced, we are going ahead with an expansion in Germany that will roughly double the capacity of the German polyol units. That probably will, because of construction lead times, that would not add capacity until at this point, probably mid-2010, at the earliest.
And then in terms of surfactants we’ve added fabric softener capacity here in the U.S. in Winder, Georgia and brought that online this year. We added a multi-purpose reactor in Brazil last year. We have no current plans for further expansion, pending outcome of what enhanced oil recovery might bring.
We would like to use up our North American sulfination capacity for EOR, should that opportunity continue to develop. In terms of global footprint, the only site we are actively looking at is India, but we’re still studying that market and have not made a firm commitment to any firm assets on the ground in India.
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