che_december-2024 - 25

Part 2
Cover Story
Cost Engineering with
Previously Owned
Process Equipment
Previously used process equipment can offer significant cost advantages in capital construction
projects, but there are important questions to consider before pursuing pre-owned equipment
M
any misconceptions persist in
the marketplace about secondhand
equipment. Companies
worry that previously owned
equipment may not be in reliable condition,
leading to potential breakdowns or runaway
maintenance costs that evaporate
cost savings. They fear used equipment
won't match the performance or efficiency
of new models, especially if technological
advances have been made. And still others
believe that used equipment may not
integrate smoothly with current systems or
may lack modern features, requiring costly
modifications or leading to inefficiencies.
Put another way, the main question companies
grapple with is this: Are the cost and
lead time savings gained with used equipment
really worth the potential downside?
While these concerns certainly are understandable,
the reality is that these risks
can be effectively mitigated when purchasing
from a trusted supplier. There is plenty of
" bang for the buck " to be realized when buying
used plants, systems and equipment.
This article discusses some ways to alleviate
concerns over used equipment, and outlines
the questions that should be asked before
purchasing used process equipment.
Cost and time savings
When manufacturers find the right fit for
used equipment, the large savings in capital
cost and lead time savings often come
as a welcome surprise. In the author's experience,
quality secondhand equipment
can save companies 50% on cost and 90%
on delivery times. For companies that buy
complete pre-owned systems or plants, the
savings can reach 70% on cost and at least
50% lead time for engineering and equipRoss
Gale
International Process
Plants (IPP)
IN BRIEF
COST AND TIME SAVINGS
TESTING AND
COMPATIBILITY
FIGURE 1. Potential buyers of pre-owned equipment can inspect
the pieces and conduct tests prior to finalizing the sale
ment supply. These savings often justify
natural concerns about purchasing assets
that were not custom-designed for the application,
but will do the job comparably at a
fraction of the cost and lead time.
Used equipment may come with imperfect
specifications, but it arrives at the right
price and at the right time. In today's competitive
global market, time and money are
two terrible things to waste. Why should
manufacturers strive for the unattainable
goal of engineering perfection in designing
manufacturing plants when they can aim for
a more reasonable target that can be in service
on a shorter schedule and for less cost?
Testing and compatibility
In many cases, historical operating records
and maintenance documentation can be
provided when purchasing the equipment
to get a better understanding of maintenance
needs. Buyers can inspect the equipment
prior to purchase, which may include
conducting tests, such as thickness tests,
run tests and hydrostatic-pressure tests to
CHEMICAL ENGINEERING WWW.CHEMENGONLINE.COM
DECEMBER 2024
25
ASSESSING PRE-OWNED
EQUIPMENT
QUALIITY, RELIABILITY
AND SERVICE LIFE
INDUSTRY EXAMPLES
ENVIRONMENTAL IMPACT
http://WWW.CHEMENGONLINE.COM
che_december-2024

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