New Power Generation Infrastructure May Sustain Growth in the South African Water Treatment Chemicals Market, Says Frost & Sullivan

CAPE TOWN, South Africa, April 29, 2010 - The demand for water and wastewater treatment chemicals in South Africa's
industrial sector will witness strong growth over the next few years. This is
due to the increased recycling of water by end-users and the planned
infrastructural development by the national electricity utility, Eskom.

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"Increasing environmental awareness and economic concerns have driven
industrial end users to reuse effluent and process water," notes Frost &
Sullivan Research Analyst Naasir Roomanay. "Additionally, South African end
users of industrial water and wastewater treatment chemicals are aware of the
scarcity of water and the implications of overuse in the region."

New analysis from Frost & Sullivan (www.chemicals.frost.com),
South African Industrial Water and Wastewater Treatment Chemicals Market,
finds that the market earned revenues of US$87.8 million in 2008 and
estimates this to reach US$129.6 million in 2015. The products covered in
this analysis are coagulants and flocculants, pH adjustment chemicals,
scaling and corrosion control chemicals, disinfectants and biocides and
defoamer and anti-foamer chemicals.

If you are interested in more information on this study, please send an
e-mail to Patrick Cairns, Corporate Communications, at
patrick.cairns@frost.com, with your full name, company name, title, telephone
number, company e-mail address, company website, city, state and country.

"Although the South African industrial water and wastewater treatment
chemicals market is currently restrained, the high cost of alternative
technologies and the necessity for chemicals in many end-user industries is
sustaining demand," Roomanay says. "Many industry participants speak
positively of upcoming opportunities in the local market, especially in the
power generation and mining industries."

In 2009, Eskom's water consumption was approximately 375,000 million
cubic metres per annum (MM3/a). The utility's significant expansion plans
suggest that by 2017 its water consumption will increase by an estimated
67,200 MM3/a.

In the water treatment chemicals segments, scaling and corrosion control
as well as disinfectant type chemicals are expected to witness the highest
growth, as they are used extensively in high opportunity end-user industries
for their cooling towers and boilers. Compound annual growth rates of 7.0 per
cent and 6.6 per cent, respectively, are estimated for these chemical types,
largely due to their use in the power generation industry.

However, the cost-effectiveness and increasing efficiency of mechanical
systems can affect the sales of water treatment chemicals.

"Mechanical technologies can remove scaling and corrosion-causing
substances in the water used in boiler and cooling towers," explains
Roomanay. "This decreases the need for industrial water and wastewater
treatment chemicals."

Providing a complete client-support service, combined with alternative
sales strategies and value-adding products could overcome these challenges
for water and wastewater treatment chemicals suppliers. Furthermore, looking
beyond local infrastructural expansion projects for opportunities abroad will
also bring about growth prospects.

South African Industrial Water and Wastewater Treatment Chemicals Market
is part of the Chemicals & Materials Growth Partnership Services programme,
which also includes research in the following markets: South African
Industrial Paint and Coatings Market, South African Market for Commodity
Plastics, Strategic Opportunities for the Biofuel Industry in Key Sub-Saharan
African Countries, and Key Sub-Saharan Crop Protection Chemical Markets. All
research services included in subscriptions provide detailed market
opportunities and industry trends that have been evaluated following
extensive interviews with market participants.

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    South African Industrial Water and Wastewater Treatment Chemicals Market
    M4C3

    Contact:
    Patrick Cairns
    Corporate Communications - Africa
    P: +27-18-464-2402
    E: patrick.cairns@frost.com

www.frost.com

Patrick Cairns, Corporate Communications - Africa of Frost & Sullivan, +27-18-464-2402, patrick.cairns at frost.com