Article: FGD Sector of Lime Market Flat, One Producer Eyeing Other Options

LAST YEAR WAS FLAT for the flue gas desulfurization (FGD) segment of the lime market. This lackluster performance comes on the heels of a meteoric expansion in 1995 which, however, did not turn out as strong as had been hoped. A disappointing product performance in 1996 has left one producer seeking out the aid of an investment bank to investigate ways of diversifying its business.

Despite 28 percent growth in the FGD business between 1994 and 1995, Dravo Corporation, which sells two-thirds of its lime to utilities, finds itself overly dependent on the vagaries of the utilities business it serves. In response, the company has enlisted the aid of Lehman Brothers to ...

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