02 EPC PET vantage revamping

The EPC Group is certified according to DIN EN ISO 9001:2008 EPC PETvantage® - Plant Modernization Revamp | Capacity increase ENGINEERING & PLANT CONSTRUCTION Market Driven Approach - Strategic Revamping PETvantage® Revamping Conceptions ► plant conversion for alternative raw materials, or production of new polymers ► increase of capacity / productivity ► conversion from textile- to bottle-PET ► Flexibility through polymers modification for specialities application ► Flexibility of direct spinning to produce specialities in fibres/ filament yarns EPC_PETvantage_Revamping l 2013 l ww.epc.com Market Driven Approach - Strategic Analysis Technical Feasibility Study ► Systematic Business Process (1/4) Diagnosis: Assessment & Analysis of the Plant to identify the “key-points” and “limiting factors”, Followed by the definition of technological plant re-vamping conception for “best-fit” EPC_PETvantage_Revamping l 2013 l ww.epc.com Market Driven Approach - Strategic Analysis Technical Feasibility Study ► Systematic Business Process (2/4) Pre-Engineering: Detailed Revamp Project Technology (Feasibility Scenarios) Definition of Investment Scope, including Financial Engineering Models optional EPC_PETvantage_Revamping l 2013 l ww.epc.com Market Driven Approach - Strategic Analysis Technical Feasibility Study ► Systematic Business Process (3/4) Scenario Study: Confirms Market-Fit & Financial Feasibility Investment Pay-Off Estimate - All Scenarios (DYNAMIC) IndustrialEngineering ALL COST in US-Dollar, based on an USD/EUR exchange rate of: 1,260 SENSITIVITY ANALYSIS on November 20, 2008 PTA price in USD/kg: 0,800 IPA price in USD/kg: 2,230 MEG price in USD/kg: 0,900 Gross profit margin in USD: SCENARIO DMT Description BGC = bottle grade chips, TEX = textile grade polymer SCENARIO SCENARIO SCENARIO 2A SCENARIO SCENARIO 3A1 SCENARIO 3A2 130 SCEN CPU-DMT BPU-DMT CPU-PTA BPU-DMT CPU-PTA BPU-PTA CPU-PTA CBPU CPU-PTA CBPU CPU-PTA CBPU CPU-PTA CBPU CPU-PTA TEX BGC TEX BGC TEX BGC TEX BGC BGC TEX BGC TEX BGC TEX BGC MT/D 130 110 150 110 150 110 150 110 150 150 300 150 300 150 350 Variable production cost USD/MT 65,5 169,3 33,9 169,3 39,6 109,4 37,2 100,0 96,8 27,8 82,0 27,7 76,8 27,7 73,2 Fix cost USD/MT 43,7 58,5 35,3 58,5 35,3 54,8 35,3 53,1 39,0 36,4 21,3 36,4 19,4 36,4 19,4 Annual fix cost USD 1.986.120 2.250.943 1.851.113 2.250.943 1.851.113 2.108.836 1.851.113 2.043.151 2.043.151 1.909.699 2.187.179 1.909.699 1.995.141 1.909.699 1.995.141 Raw material consumpt cost USD/MT 1.307 Total annual production cost (@350 days/year) in USD 123.235.032 114.461.874 100.878.890 99.317.275 113.769.586 168.672.644 167.926.652 130.499.359 Total average production cost in USD/MT 1.467 1.258 1.109 1.091 1.084 1.071 1.066 1.065 1.299 Yearly variable production cost savings in USD Yearly fix cost savings in USD 991 1.299 991 1.002 991 976 976 991 976 991 976 991 976 1.437.455 3.486.297 3.955.991 4.511.972 5.082.814 5.285.930 5.383.292 135.007 277.114 342.799 284.214 140.186 332.224 255.802 14.378.073 25.809.666 26.819.502 26.819.502 26.819.502 26.819.502 39.586.365 140.000 100.442 116.842 2.180.622 10.651.325 11.002.163 17.786.622 corresponding to production rate development Yearly raw material cost savings in USD based on max 150 MT/D capacity Additional profit margin on add capacity in USD EPC_PETvantage_Revamping l 2013 l ww.epc.com Market Driven Approach - Strategic Analysis Technical Feasibility Study ► Systematic Business Process (3/4) Scenario Study: Confirms Market-Fit & Financial Feasibility Investment Pay-Off Estimate - All Scenarios (DYNAMIC) IndustrialEngineering ALL COST in US-Dollar, based on an USD/EUR exchange rate of: 1,260 SENSITIVITY ANALYSIS on November 20, 2008 PTA price in USD/kg: 0,800 IPA price in USD/kg: 2,230 MEG price in USD/kg: 0,900 Gross profit margin in USD: SCENARIO DMT Description BGC = bottle grade chips, TEX = textile grade polymer MT/D SCENARIO SCENARIO SCENARIO 2A SCENARIO SCENARIO 3A1 SCENARIO 3A2 130 SCEN CPU-DMT BPU-DMT CPU-PTA BPU-DMT CPU-PTA BPU-PTA CPU-PTA CBPU CPU-PTA CBPU CPU-PTA CBPU CPU-PTA CBPU CPU-PTA TEX BGC TEX BGC TEX BGC TEX BGC BGC TEX BGC TEX BGC TEX BGC 130 110 150 110 150 110 150 110 150 150 300 150 300 150 350 EPC_PETvantage_Revamping l 2013 l ww.epc.com Market Driven Approach - Strategic Business Design A Technological Feasibility Study defined the appropriate design …resulting in a business-technological “best-case”conception:     Best Market-Driven Retrofit-Strategy for the Client Very Competitive Production Cost High flexibility to adopt Market Changes Most Feasible Return on Investment ROI Minimum Plant Shut-Down Time during Implementation of Revamping Scope EPC_PETvantage_Revamping l 2013 l ww.epc.com Market Driven Approach - PETvantage The continuous Polycondensation Capacity Lift Technology for a successful business future: ► tailor-made process plant re-design ► no change of existing reactors ► Plant down-time ► ROI < weeks less than years! EPC VARIPLANT® EPC_PETvantage_Revamping l 2013 l ww.epc.com Market Driven Approach - PETvantage Capacity Lift Needs ► % Polycondensation Capacity Lift is “Must” 100 PET Conversion Cost % vs Prod Capacity in T/D 90 ► Economy-ofScale 80 Specific Conversion Cost Reduction 70 ► 60 Increase EPC_PETvantage_Revamping l 2013 l ww.epc.com 1500 1400 1300 1200 1100 1000 900 800 700 600 500 400 300 200 100 50 10 Overall Efficiency Market Driven Approach - PETvantage Production Cost Benefit Example: 300 Conversion Cost [%] ► 550 T/D (CP + SSP) 100 90 80 70 60 50 40 30 20 10 Additives consumpt Utilities/ Energy requirements 550 T/D EPC_PETvantage_Revamping l 2013 l ww.epc.com Specific Conversion Cost Fix Cost (Personnel, Maintenance) 300 T/D 11 ► Decrease ► Overall Efficiency Increase PET Plant Capacity Lift and Upgrade / Modernisation (to expand the capacity from 160 t/day to 240 t/day) Location Volos / Greece Services of EPC • • • • • • Client Artenius Hellas (former VPI) Realization 2003 - 2005 Feasibility Study General Engineering Equipment Supply Assembling Supervision Commissioning Consulting PET Plant Capacity Lift and Upgrade / Modernisation ► Capacity-, Reliability- & Production Quality Increase by Modification of a Finisher - … and something more A very special version of “capacity lift”! 15 EPC_PETvantage_Revamping l 2013 l ww.epc.com PET Plant Capacity Lift and Upgrade / Modernisation (To add 140 t/day speciality polyester production (flame retardent PET) Location Bobingen / Germany Services of EPC • • • • • • Client Trevira GmbH Realization 2003 - 2005 Feasibility Study General Engineering Equipment Supply Assembling Supervision Commissioning Supervision Consulting PET Plant Capacity Lift and Upgrade / Modernisation ► Capacity Lift and Polymer Specialities Production 17 EPC_PETvantage_Revamping l 2013 l ww.epc.com Conversion of Existing PET Polycondensation Lines For PET-chips production from textile fibers to food grade PET-chips (bottle –PET) with simultaneous capacity increase to 1.000 tons per day Location Yanbu / Saudi Arabia Services of EPC • • • • • • Feasibility Study Technological Design General Engineering Functional Turn-Key Contractor Functional Turn-Key, Erection Supervision Commissioning Supervision Client IBN Rushd Saudi Arabia (a SABIC affiliate) Realization 2006 - 2009 Market Driven Approach - PETvantage ► World-Largest PET Plant Conversion & Debottlenecking 19 EPC_PETvantage_Revamping l 2013 l ww.epc.com Market Driven Approach - PETvantage ► World-Largest PET Plant Conversion & Debottlenecking 20 EPC_PETvantage_Revamping l 2013 l ww.epc.com Market Driven Approach - PETvantage ► World-Largest PET Plant Conversion & Debottlenecking 21 EPC_PETvantage_Revamping l 2013 l ww.epc.com Market Driven Approach - PETvantage ► World-Largest PET Plant Conversion & Debottlenecking 22 EPC_PETvantage_Revamping l 2013 l ww.epc.com Market Driven Approach - PETvantage 350’000 tons/a PET capacity reached 23 EPC_PETvantage_Revamping l 2013 l ww.epc.com Market Driven Approach - PETvantage ► World-Largest PET Plant Conversion & Debottlenecking EPC PETvantage®, (1) Plant Production Cost Improvement via applied PETvantage Technology per ton of PET, e.g.: ☺ Specific total fuel gas consumption: - 15% ☺ Specific total electrical power consumption: - 32% ☺ Specific total cooling energy consumption: - 12% Overall Approx Conversion Cost Reduction by: 35% 24 EPC_PETvantage_Revamping l 2013 l ww.epc.com Market Driven Approach - PETvantage ► World-Largest PET Plant Conversion & Debottlenecking EPC PETvantage®, (2) Plant Production Quality via applied PETvantage Technology, according to some key parameter like: ☺ Acetaldehyde content in BG chips: ☺ Thermal Stress on polymer melt, < 0.3 ppm before: 220 Kelvin-Hours; after: 130 Kelvin-Hours, => - 40% ☺ Very low AA rebuilt rate according to client R&D ☺ and: high quality consistency – thanks to Inside PET ! 25 EPC_PETvantage_Revamping l 2013 l ww.epc.com Market Driven Approach - PETvantage EPC InsidePET® - Advanced Plant Process Control • carboxylic end groups • intrinsic viscosity The Customized Solution for  IV Consistent Product Quality and COOH  Simplified PET Polycondensation Plant Operation TPD • plant capacity 27 MR • reactive molar ratios EPC_PETvantage_Revamping l 2013 l ww.epc.com Market Driven Approach - PETvantage EPC InsidePET EXAMPLE (1/3): Esterification reaction progress control by reactive surface renewal confidential confidential confidential Automated parameter setting corresponding to plant throughput, including reactive molar ratios correction confidential confidential confidential confidential confidential confidential confidential confidential confidential confidential confidential confidential confidential confidential confidential Inside PET 29 EPC_PETvantage_Revamping l 2013 l ww.epc.com COOH end groups setting for a consistent carboxylic end group level in PET -COOH end groups control due to high PTA particle size fluctuation Reactive molar ratio control including process glycol components determination Let’s move forward together! Contact EPC Engineering Consulting GmbH Mr Karol Kerrane Business Development Manager Breitscheidstraße 152 07407 Rudolstadt Germany Phone: +49 3672 302 300 Email: karol.kerrane@epc.com www.epc.com 34 EPC_PETvantage_Revamping l 2013 l ww.epc.com ... Debottlenecking 20 EPC_ PETvantage _Revamping l 2013 l ww .epc. com Market Driven Approach - PETvantage ► World-Largest PET Plant Conversion & Debottlenecking 21 EPC_ PETvantage _Revamping l 2013 l ww .epc. com... - PETvantage ► World-Largest PET Plant Conversion & Debottlenecking 22 EPC_ PETvantage _Revamping l 2013 l ww .epc. com Market Driven Approach - PETvantage 350’000 tons/a PET capacity reached 23 EPC_ PETvantage _Revamping. .. Driven Approach - PETvantage ► World-Largest PET Plant Conversion & Debottlenecking 19 EPC_ PETvantage _Revamping l 2013 l ww .epc. com Market Driven Approach - PETvantage ► World-Largest PET Plant Conversion