In Brief
As in past, dismantling, relocating and refurbishing a used plant still provides economic incentives today. Since competition is shifting towards an emphasis on providing customers with WHAT, WHEN, and WHERE they want it, a beneficial way to achieve such fast service is to create an organization in which people; process, operating units and technology are continuously reconfigured.
Plant relocation has proven to be a stage in this reconfiguration that has secured the viability of many operating units and demonstrated fast capital return.
Background of Project Relocation
There has been relocation of used and refurbishment equipment since World War II, but the complete plant relocation concept has only been implemented by the chemical industries since early 1970s.
Plants become available for sale as mothballed plants not because of technological obsolescence or unserviceability. They originated from companies or complexes that were phased out as a result of changing market conditions, increases in raw material costs and environmental restrictions in both Western Europe and the U.S. Indecisive financial management in some part of the world forced some petrochemical plants to ease operation.
The plant relocation is indeed a viable, economic and rapid method of getting a manufacturing facility constructed and producing.
Economics For a Hypothetical Relocation Case
In the US, nitric acid relocation with successful commissioning has made the capital expenditure justifiable. Total costs for relocation, including equipment refurbishing advanced electrical/instrumentation upgrade and commissioning, has produced a capital investment up to 35%-65% of a new similar plant. This can be done without sacrificing operating efficiency over a 20-year life span. Equally important is that the procurement/design/ construction period can be reduced by up to 70%. This results in making products for the customers quicker and responding to market needs.
Project Management and Control
A successful project will apply management skill in planning and control of the relocation, the same as for new grassroots project. The relocation management is not an exception from the standard and should use established techniques such as: Planning, Organizing, Leading, Controlling.
EXPERIENCES
Projects Experiences on
Plant Relocation Works of REKAYASA:
1. Melamine Plant Project (1993-1996)
REKIND was a sub-contractor to: ABB-Lummus Crest BV, Holland.
The plant planned to produced 160 tons mmelamine per stream day. Dismantled in Geleen, Holland and transported to Bontang, Indonesia.
Scope of work of REKIND: material handling, storing, examination and construction (civil, structural, mechanical, piping, welding, etc), testing.
2. I C I Maju Project (1995-1996)
PT ICI has appointed REKIND as an Engineering, procurement and construction services of the ICI Paint Plant Project.
Dismantled in Cimanggis, Bogor and transported to Jababeka Industrial Estate, West Java Indonesia
All construction work had been managed and supervised by utilizing full local content to the maximum extent in accordance to the policy of Indonesia Government.
REKIND had the sole responsibility toward ICI Maju by assigning Construction Manager who coordinated the overall construction execution at site and the direction of Project Manager. ICI/PT Rekayasa has appointed 9 local contractors.
3. Gypsum Board Factory Project (1995)
PT. CSR. Prima Karya Plasterboard Relocated from Sweden to Cikarang Industrial Estate. Product: Plasterboard Panel 10,000,00 m1/year. Type contract: manpower supply man hour basis for project Management services.
Scope of Work: To provide Project Management Services (Project Management Consultant) for engineering coordination, procurement and construction management, project control, project administration and legal document.
4. Petro Jaya Boral Plasterboard Project (1997)
PT. Petro Jaya Boral Plasterboard Cilegon, West Java REKIND had been assigned to conduct the mechanical and electrical construction, as well as the steel structure fabrication and installation.
Dismantled in France and trasported to Krakatau Industrial Estate.
Scope of Work: Material Handling, Mechanical Erection up to precommissioning, electrical installation, detail engineering, procurement, fabrication and installation of steel structure and silos, three months maintenance after mechanical acceptance.
As in past, dismantling, relocating and refurbishing a used plant still provides economic incentives today. Since competition is shifting towards an emphasis on providing customers with WHAT, WHEN, and WHERE they want it, a beneficial way to achieve such fast service is to create an organization in which people; process, operating units and technology are continuously reconfigured.
Plant relocation has proven to be a stage in this reconfiguration that has secured the viability of many operating units and demonstrated fast capital return.
Background of Project Relocation
There has been relocation of used and refurbishment equipment since World War II, but the complete plant relocation concept has only been implemented by the chemical industries since early 1970s.
Plants become available for sale as mothballed plants not because of technological obsolescence or unserviceability. They originated from companies or complexes that were phased out as a result of changing market conditions, increases in raw material costs and environmental restrictions in both Western Europe and the U.S. Indecisive financial management in some part of the world forced some petrochemical plants to ease operation.
The plant relocation is indeed a viable, economic and rapid method of getting a manufacturing facility constructed and producing.
Economics For a Hypothetical Relocation Case
In the US, nitric acid relocation with successful commissioning has made the capital expenditure justifiable. Total costs for relocation, including equipment refurbishing advanced electrical/instrumentation upgrade and commissioning, has produced a capital investment up to 35%-65% of a new similar plant. This can be done without sacrificing operating efficiency over a 20-year life span. Equally important is that the procurement/design/ construction period can be reduced by up to 70%. This results in making products for the customers quicker and responding to market needs.
Project Management and Control
A successful project will apply management skill in planning and control of the relocation, the same as for new grassroots project. The relocation management is not an exception from the standard and should use established techniques such as: Planning, Organizing, Leading, Controlling.
EXPERIENCES
Projects Experiences on
Plant Relocation Works of REKAYASA:
1. Melamine Plant Project (1993-1996)
REKIND was a sub-contractor to: ABB-Lummus Crest BV, Holland. The plant planned to produced 160 tons mmelamine per stream day. Dismantled in Geleen, Holland and transported to Bontang, Indonesia.
Scope of work of REKIND: material handling, storing, examination and construction (civil, structural, mechanical, piping, welding, etc), testing.
2. I C I Maju Project (1995-1996)
PT ICI has appointed REKIND as an Engineering, procurement and construction services of the ICI Paint Plant Project.Dismantled in Cimanggis, Bogor and transported to Jababeka Industrial Estate, West Java Indonesia
All construction work had been managed and supervised by utilizing full local content to the maximum extent in accordance to the policy of Indonesia Government.
REKIND had the sole responsibility toward ICI Maju by assigning Construction Manager who coordinated the overall construction execution at site and the direction of Project Manager. ICI/PT Rekayasa has appointed 9 local contractors.
3. Gypsum Board Factory Project (1995)
PT. CSR. Prima Karya Plasterboard Relocated from Sweden to Cikarang Industrial Estate. Product: Plasterboard Panel 10,000,00 m1/year. Type contract: manpower supply man hour basis for project Management services.Scope of Work: To provide Project Management Services (Project Management Consultant) for engineering coordination, procurement and construction management, project control, project administration and legal document.
4. Petro Jaya Boral Plasterboard Project (1997)
PT. Petro Jaya Boral Plasterboard Cilegon, West Java REKIND had been assigned to conduct the mechanical and electrical construction, as well as the steel structure fabrication and installation.Dismantled in France and trasported to Krakatau Industrial Estate.
Scope of Work: Material Handling, Mechanical Erection up to precommissioning, electrical installation, detail engineering, procurement, fabrication and installation of steel structure and silos, three months maintenance after mechanical acceptance.
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