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L. 49 ISSUE 7

JULY 2014

ChemTECH World Expo 201528-31 January 2015, Mumbai,India

EPC SPECIAL

August 2013 • 3Chemical Engineering World

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ContentsCEW

4 • July 2014 Chemical Engineering World

NEWS ►Industry News / 8Technology News / 18

NEWS FEATURES ►India Needs Corrosion Free Infrastructure to Ensure Human Safety: Suri / 28

FEATURES ►Raising the Bar of Indian EPC / 34– Mittravinda Ranjan

L&T Hydrocarbon: Making the Most of the ‘Spin off’ / 36– Krishnamurthi Venkataramanan, CEO and MD, L&T

Breaking Boundaries, Leaping Beyond / 40– Alwyn Bowden, CEO, Essar Projects Ltd

India is yet to Mature as ‘the EPC Market’ / 46– Anil Chanana, COO - Oil & Gas, Leighton India Contractors Pvt Ltd

Advantages of Using FRP / 50– R Srinivasan, C V Manian (PhD), Samir Degan (PhD), NIGIS

Avoiding Glitches in Mega Scale Project / 52– G K Pillai, MD & CEO, Walchandnagar Industries Ltd

Insurance of EPC Projects in Downstream Chemical Industry - Indian Saga / 56– Azad Kumar, VP, Aon Global Insurance Brokers Pvt Ltd

EPC Model in India: Bottlenecks & Benefits / 60– Ajay Hans, MD, Petron Engineering Construction Ltd

Risk Quantification with Extended HAZOP Study / 64– Rainer Semmler, TÜV SÜD Chemie Service GmbH

MARKET INSIGHTS ►Boosting Bottom Line with Cloud Solutions / 70

MARKETING INITIATIVE ►Electromech Engineering Enterprises (Third Party Inspection Agency) / 74

Suraj Limited / 76

Jumbo Bagging System / 76

Time Technoloplast / 78

EIMCO - K.C.P. Ltd / 79

PRODUCTS ► / 80EVENTS ► / 90

PROJECT UPDATE ► /91

BACK OF BOOK ►Ad Index / 95

Book Shelf / 96

Interview/ 97Rising Above the Competition– Vipul Shah, Chairman, CEO & President, Dow Chemical International Pvt Ltd

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VOL. 49 | NO.7 | JULY 2014 | MUMBAI | ` 150

Disclaimer: The Editorial/Content team at Jasubhai Media Pvt Ltd has not contributed to writing or editing “Marketing Initiative.” Readers would do well to treat it as an advertisement.

Cover page image: TÜV SÜD Chemie Service GmbH

October 2013 • 11Chemical Engineering World

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Industry NewsCEW


O PA LÊ s P e t r o c h e m i c a l C o m p l e x t o b e Commissioned in 2015

Doubling Capacity at Vadinar COT, 1st on BORLÊs Expansion Plan Agenda

Vadodara, India: In 2015, the integrated petrochemical plant of ONGC Petro Additions Ltd in Dahej will be commissioned in the first quar ter. The construction of the complex star ted in 2009 and is planned to be completed by Q1 2015. This complex is one of the largest among its kind and is valued atUSD 4 billion. It would comprise of a dual feed cracker unit along with other associated facilities. It would have an annual capacity of producing 1.1 million tonne and 400,000 tonnes of ethylene and propylene respectively. Besides giving impetus to the petrochemical sector, it would create almost 1,000 permanent as well as 15,000 direct and indirect job opportunities. Almost 50 per cent of its production would be supplied to overseas markets like China, Malaysia, Africa, Singapore, Indonesia, Pakistan, Sri Lanka, Bangladesh, Turkey and Vietnam.

Ahmedabad, India: To star t their expansion plans, Bharat Oman Refineries Limited (BORL) has proposed doubling the storage capacity at their Vadinar crude oil terminal (COT) in GujaratÊs Jamnagar distr ict; through this, the company also plans on reducing the demurrage cost.

BORL has sent a proposal for addition of eight storage tanks with 60,000 cubic meter capacity and would take care of any storage difficulties in the future. Apart from this expansion, there are plans of including other ancillary facilit ies like a blending p lant and in terconnect ion wi th the Ind ian Oi l Corporat ion (IOC) Terminal. R Ramachandran, COO, BORL, stated that the project was just in its initial stages and has not received all the clearances necessary. The company would expand its refining capacity to 8-9 million tonnes from its present 6 million tonnes. These additional tanks would provide better flexibility of operation as it would make successive shipment of different grades of crude possible and enable blending crudes for the refinery in Bina. It would pave the way for the future if the capacity at the Bina refinery is to be increased to 15 or 30 million tonnes per annum.

Another reason for the expansion of COT capacity is to reduce the demurrage. The company states that demurrage charges of VLCC tankers are as high as USD 65,000 per day and it changes as per the nature of the shipping market. The Gujarat Pollution Control Board (GPCB) had set up a public hearing on July 16 regarding the environmental clearance of BORLÊs expansion plans.

Chandigarh, India: As a result of increase in the feedstock availability and greater focus on manufacturing sector, plastic processing units would grow in North Indian states such as Jammu and Kashmir, Punjab, Haryana, Himachal Pradesh, Uttaranchal and Rajasthan. Big refineries are expanding their raw plastic production capacity in this region. In 2014-15, the plastic production capacity of this region would touch 2.5 million tonnes per annum, said t h e K n o w l e d g e a n d S t r a t e g y P a p e r b y F I C C I w i t h Tata Strategic Management.

GAIL and IOCL are the two producers of plastic in North India with a capacity of 0.5 million tonnes per annum and 1.25 million tonnes per annum respectively. HMELÊs Polypropylene plant in Bhatinda has a capacity of 0.44 million metric tonnes per annum. This sector will get a fur ther boost because of the petrochemical complex coming up in Barmer, Rajasthan. This may encourage investment in the downstream plastic processing as almost 2.5 million tonnes per annum of plastic would be available. The study states that Northern India has a low consumption as compared to Western India and this is mainly due to shortage of raw material. There could be great opportunities for prospective entrepreneurs in this sector according the experts.

Plastic Processing Units could Get Boost through Refinery Expansions

I n d i a h a s G r e a t P o t e n t i a l f o r Decorative Paints

New Delhi, India: AkzoNobel is banking on India for its decorative paints segment. The company plans to draw from its global experience to serve the Indian market. The company would not deviate from its plan although the Indian economy slowed down these past couple of years as it is looking at IndiaÊs growth potential in the long term. The company is eyeing India, China, Indonesia and Brazil as high growth markets. In the decorative paints segment, AkzoNobel saw revenue totalling Euro 4 billion in 2013.

Ruud Joosten, Executive Committee Member (Decorative paints), AkzoNobel, said that the segment is most likely to grow as the government is laying out plans in line with the global trend of urbanisation. He also stated that as compared to ChinaÊs two litres, India has an annual per capita consumption of just one litre. It has been observed over the years that people go for premium products from mid-market ones. In India, all segments would be focused upon along with the premium category having the Dulux brand.

ErratumThe article „Corrosion Tackling Challenges in Indian Fertiliser Industry‰ is written by V P Sastry & C V Manian from NACE International Gateway India Section (NIGIS), not by Guy Goves from DFPCL - as erroneously printed on ÂcontentÊ page (4) in June 14 issue.

Spelling of ÂTacklingÊ was also misprinted.Read the June 2014 issue on your Android and Apple smartphones. To download link login to www.cewindia.com.

Industry NewsCEW


Ananth Kumar: India could be Among Top 5 in Chemical and Petrochemical Industry

Government Says No Proposal for Urea Price Hike

New Delhi, India: The Lok Sabha was informed that there would not be any proposal for urea price hike and that subsidy would be provided to farmers for soil nutr ients by the government. As against the demand of 31 million tonnes of urea, the production of urea in India stands at 22 million tonnes. The gap is supplied through impor ts. To achieve self-sufficiency, the government has set plans in motion for acquisit ion of assets in var ious countries like Canada and Russia. The country has established joint ventures with Oman, Morocco, Senegal and Jordon in the fer til iser industry. Kumar emphasised the impor tance of shifting to organic manure and increasing awareness about using micro nutrients among farmers. Fer til iser plants in a number of states will get a boost through the Haldia-Jagdishpur GAIL gas pipeline.

Mumbai, India: Ananth Kumar, Minister of Chemicals and Fer ti l isers said that India could rank among the top 5 countr ies in the chemical and petrochemical industry; he was speaking at the launch of India Chem 2014 International Conference which is organised by the ministry he heads.

Kumar said that the chemical industry is like the backbone of the nation. The country could very well be in line with China, Japan, Germany and US through adoption of the right policies and taking the right approach. He further added that the ministry has put forth a proposal to have reverse SEZs in Myanmar and Iran so that the materials the Indian chemical industry sources would be cost-effective. He went on to add that there are specially delineated PCPIRs being set up by the Government in Dahej, Vishakhapatanam & Kakinada, Paradip and Cuddalore & Nagapatt inam. While talking at the launch he said that emphasis would be laid on strict compliance with environmental norms for a sustainable growth but the industry leaders would be encouraged to seriously consider export of finished products and specialty chemicals instead of the present scenario of commodities and building blocks.

Customs Duty on Petrochemicals Slashed, ` 200Cr for Textile Mega Clusters

Rolta Awarded Multi-million Dollar Engineering Systems Project

New Delhi, India: As stated in the press release by the Finance Ministry, to boost domestic manufacture and to address the issue of inverted duties, the General budget 2014-15 has reduced basic customs duty (BCD) on certain items. To encourage new investment and capacity addition in the chemicals and petrochemicals sector, basic customs duty has been reduced. The Finance Minister said that steps have been taken to boost domestic production of electronic items and reduce our dependence on imports. These include imposition of basic customs duty on certain items outside the purview of IT Agreement, exemption for inputs/components in PC manufacturing from SAD, imposition of education cess on imported electronic products for parity etc.

According to the statement released by Ministry of Textiles, the Finance Minister, Arun Jaitley proposed setting-up of mega textile clusters at Varanasi, Bareilly, Lucknow, Surat, Kuttch, Bhagalpur, Mysore and one in Tamil Nadu with a sum of ` 200 crore. He also announced a Trade Facilitation Centre and a Crafts Museum with an outlay of ` 50 crore to develop and promote handloom products and carry forward the r ich tradition of handlooms of Varanasi.

Mumbai, India: Rolta has been awarded an additional scope of work by Sadara Chemical Company (Sadara) to implement a comprehensive Engineering Information System within SadaraÊs Jubail integrated chemical complex. This multi-mil l ion dollar award of additional scope is an amendment to the contract which was awarded earlier and which was also multi-million dollars in value. Rolta was selected for this challenging project based on its unique combination of world class capabilities in Engineering and Information Technology (IT). The project is being managed by a global Rolta team working out of the United States, India and Saudi Arabia.

EIL Gets PMC Services Contract for BFCLÊs Fertiliser Complex

New Innovation Centre Launched by Tata Chemicals

New Delhi, India: Brass Fer ti l izer Company Limited (BFCL), a Niger ian Company has entrusted Engineers India Limited (EIL) for Project Management Consultancy (PMC) services for i ts upcoming integrated green f ield gas based Fer ti l iser C o m p l ex c o m p r i s i n g o f u r e a / m e t h a n o l p l a n t a t B r a s s Island, Niger ia. BFCL and a Danish Consortium led by Haldor TopsŒe A/S intend to develop this integrated Fertiliser Complex at Brass Island in the State of Bayelsa, Nigeria with production facilities for Ammonia, Urea and Methanol to cater African Market. The proposed plant will produce 2200 MTPD Ammonia, 3850 MTPD Urea and 5000 MTPD Methanol. The plant is envisaged to be ready for commercial production by mid 2018.

Pune, India: Cyrus Mistry, Chairman, Tata Chemicals, inaugurated its state-of-the-ar t Innovation Centre in Pune on July 10. The Centre will be Tata ChemicalsÊ Technology and Innovation hub to incubate and support the companyÊs growth vectors in wellness foods, agr i and chemistr y solut ions. I t would a lso provide technology support to other Tata group companies. Speaking at the inauguration, Mistry said, „Consumer-centric technology and innovation can provide sustainable differentiators for our group companies. For this, management of technology and innovation will need to form a key pillar of strategy. This may be institutionalised through the creation of a suitable culture together with appropriate processes and mechanisms. The interdiscipl inary innovation centre can play a valuable role in this endeavour.‰

Industry NewsCEW


HPS Plans on Doubling MDI Splitting Capacity

Shanghai , Ch ina: Hun tsman and Shangha i Ch lo r -A lka l i Chemical Co Ltd (SCAC) announced plans to double the MDI (diphenylmethane diisocyanate) splitting capacity of their joint venture company, Huntsman Polyurethanes Shanghai Ltd Co (HPS), at the Shanghai Chemical Industrial Park (SCIP) in Caojing. With the new plant, MDI splitting capacity at the site will increase from 240,000 to 480,000 metric tonnes per year. Commercial operation is planned to start in 2017. The facility will take MDI precursors and split them to create more differentiated, custom made products for downstream markets. The crude MDI plant and MDI splitter are part of an integrated isocyanates complex that includes manufacturing facilities for the precursors aniline and nitrobenzene.

Edeniq & Global Bio-chem Partner to Develop Chemical from Corn Stover

Mobile Emissions Catalysts Production Plant Inaugurated by BASF

Visalia, USA: Edeniq Inc has signed a letter of intent with Global Bio-chem Technology Group Company Limited to develop and commercialise processes to conver t corn stover to industr ial sugars for use in the production of chemicals, fuels, and other bio-based products. Edeniq and Global Bio-chem intend to integrate their technologies in a commercial demonstration plant to produce 50,000 metric tonnes per year of industrial sugars from corn stover, and subsequently to form a joint venture to further develop and commercialise their technology platform. Global Bio-chem is currently working on modification of corn stover, consisting of leaves, stalks and cobs of corn at its facility in the Jilin Province of China. The collaboration between Global Bio-chem and Edeniq has gained Chinese governmentÊs support. Xu Ziyi, Executive Director, Global Bio-chem, said, „The Group is a pioneer in using corn stalk as raw material for further downstream processing, and has been working on fully utilising other corn residues as well. Our collaboration with Edeniq is to focus on enhancing our technology to significantly reduce the production costs of corn stover-based sugar, and to enable us to expand into a variety of bio-based products with such biomass as raw material.‰

Ludwigshafen, Germany: BASF opened i ts new production plant for mobile emissions catalysts in Sroda Slaska, a Special Economic Zone near Wroclaw, Poland. Construction of the new 40,000 square metre manufactur ing faci l i ty BASFÊs largest emissions catalysts plant in Europe began in late 2012, suppor ted by an init ial Euro 90 mil l ion investment. The plant began production tr ials in Apr i l 2014, and last month star ted up two emissions catalysts manufactur ing l ines, with an init ial employee base of 100. Addi t ional expansions wi l l fo l low, ra is ing the total investment for the plant to approximately Euro 150 mil l ion. Once all ten planned l ight duty and heavy duty catalysts production l ines are operating at ful l capacity by 2016, BASF expects to employ more than 400 people at the Sroda Slaska site.

The emissions catalysts produced in Sroda Slaska will be used by manufacturers of l ight duty gasoline vehicles and l ight and heavy duty diesel vehicles to meet more str ingent Euro 6/VI emissions regulations. Among the advanced technologies that wi l l be produced at the Sroda Slaska faci l i ty are Select ive Cata ly t ic Reduct ion (SCR) systems, cut t ing-edge SCR on Filter (SCRoF) solutions as well as PremAir branded ozone destruction catalysts for automotive applications.

Houston, USA: Yuhuang Chemical Inc, a Houston based subsidiary of ChinaÊs Shandong Yuhuang Chemical (Group) Co Ltd (SYCC), is developing plans to build a world-scale methanol unit, its first of this kind, at a to-be-decided location in St. James Parish, Louisiana. This project represents Shandong YuhuangÊs first project in the United States. The new methanol unit will use natural gas as its primary feedstock and utilise the Lurgi MegaMethanol technology developed by Air Liquide Global E&C Solutions. The facility will be located south of Baton Rouge, Louisiana with a target completion date in 2018. The expected production capacity of the facility will be 5000 metric tonnes per day of Grade AA methanol. Yuhuang Chemical will operate the facility and target both domestic and international markets, particularly Asia.

Yuhuang Chemical Plans to Build Methanol Plant

M a r i e Te ch n i m o n t t o S e t - u p $ 1 . 6 B i l l i o n Fertiliser Plant

M i l a n , I t a ly : M a i r e Te c n i m o n t h a s s i g n e d a M o U w i t h Fa t i m a G r o u p P r i n c i p a l s ( F G P ) a n d M i d we s t Fe r t i l i ze r Corporation (MFC) which wil l form the basis for negotiating and f inal ising agreements towards a strategic col laboration with respect to a large scale, greenf ie ld fer t i l iser complex o f MFC located in Mount Ver non, Posey County, Ind iana (United States).

The value of EPC act iv i t ies to be executed by MET or i ts subsidiar ies shall be approximately USD 1.6 bi l l ion. FGP has already secured USD 1.259 bi l l ion of tax exempt f inancing under the United States Midwest Disaster Relief Program and its equity shall become par t of the ownership structure along with other equity investors.

The MFC Project by MET shall consist of an ammonia plant of 2,200 mtpd based on KBR technology, urea synthesis plant of 2,200 mtpd, urea granulat ion plant of 1,200 mtpd, urea ammonium nitrate plant of 4,300 mtpd and diesel exhaust fuel plant of 900 mtpd based on StamicarbonÊs technology, nitr ic acid plant of 1,530 mtpd based on Borealis/GPN technology, and all associated off-sites and uti l i t ies. MET intends to build par tnerships with impor tant US construction players for the execution of the works. The project completion is expected in the four th quar ter of 2017.

Industry NewsCEW


Operations at EvonikÊs New Hydrogen Peroxide Plant Commence

Essen, Germany: Evonik Indust r ies formal ly commenced operations at a new hydrogen peroxide plant in Jilin, China. The new production plant has an annual capacity of 230,000 metric tonnes. Evonik has invested over Euro 100 million in the site, thereby raising its current global capacity for hydrogen-peroxide production to more than 900,000 metr ic tonnes per annum. Evonik will supply H2O2 from Jilin straight to the neighbouring propylene oxide plant run by Jishen Chemical Industry Co Ltd which has likewise been newly erected.

Jishen will use the hydrogen peroxide to manufacture propylene oxide on the basis of the HPPO process. Propylene oxide is used predominantly to make the polyurethane intermediates that are used in the manufacture of products such as upholstery for car seats and furniture or insulation material for the construction and refr igeration industry.

Evonik developed the HPPO process together with ThyssenKrupp Uhde GmbH. The new plant in Jilin is the second of its kind. Evonik, ThyssenKrupp Uhde, and a Korean chemicals company as the licensee were the first companies worldwide to use the HPPO process on an industrial scale back in 2008 in Ulsan, Korea. To date, hydrogen peroxide has been used main ly as a bleaching agent by the text i le and pulp industry. The HPPO process now allows this eco-fr iendly oxidant to also be employed in the direct chemical synthesis of propylene oxide. The benefits of the new method are that it requires much lower investment costs, high production efficiency, and has excellent environmental compatibility.

MWSPC Signs a Deal for $ 5 Billion Loan

Riyadh , Saud i Arab ia : Saud i A rab ian M in ing Company (MaÊaden), announced that its affiliate MaÊaden WaÊad Al-Shamal Phosphate Company (MWSPC), has signed financing facilit ies for long term project f inance loans with a consor tium of 20 financial institutions for a total amount of USD 5 billion. MWSPC is a joint venture company formed by MaÊaden to develop the project with The Mosaic Company and the Saudi Basic Industries Corporation (SABIC).

The financial institutions include the Public Investment Fund, financial institutions from both inside and outside of Saudi Arabia as well as the two Korean expor t credit agencies who have par ticipated in the financing in suppor t of Korean contractors par ticipating in the construction of the project. Funding has also been obtained from the Islamic Development Bank.

The financing facilit ies will be util ised to fund the development of MWSPCÊs phosphate project which is being constructed at sites in WaÊad Al Shamal and the existing Ras Al-Khair Industrial City. The new complex will create significant value to MaÊaden shareholders. As one of the largest and integrated phosphate fer ti l iser facil it ies in the world, it wil l double MaÊadenÊs cost effective phosphate production and improve MaÊadenÊs access to key global markets. The estimated cost of the project is approximately USD 7.5 bill ion and production at the new facility is expected to commence in late 2016.

Global demand for polyethylene to

grow at 5% in 2012-17

BIC and EU to Undertake JV of �Euro 3.7 billion

FerroÊs Specialty Plastics Assets Completely Acquired by A. Schulman

B r u s s e l s , B e l g i u m : T h e E u r o p e a n U n i o n a n d t h e Bio-based Industr ies Consor tium (BIC) off icial ly launched the Bio-based Industr ies Joint Under taking (BBI) and its f irst Call for Proposals.

The BBI is a new publ ic-pr ivate par tnersh ip dedicated to breaking EuropeÊs dependence on fossi l fuels by conver t ing b i o m a s s a n d w a s t e s i n t o g r e e n e r eve r y d ay p r o d u c t s . I n n o v a t i v e t e c h n o l o g i e s a n d a d v a n c e d b i o r e f i n e r i e s a r e a t t h e h e a r t o f t h i s i n i t i a t i ve w h i c h i s fo c u s e d o n d e p l oy m e n t a n d t h e c r e a t i o n o f n ew m a r k e t s fo r b i o -based products such as food, feed, chemica ls, mater ia ls and fuels.

M a r c e l Wu b b o l t s , C h i e f Te c h n o l o g y O f f i c e r , D S M a n d C h a i r m a n , B i o - b a s e d I n d u s t r i e s C o n s o r t i u m s a i d , „ A s the pr ivate par tner in th is new endeavour, we are thr i l led a b o u t h av i n g b e e n a b l e t o t r a n s l a t e t h e a m b i t i o n s o f mul t ip le sectors in to one coherent v is ion; and today, in to concrete actions that place sustainabil i ty at the hear t of al l business activities.‰

Ohio, USA: A. Schulman Inc announced that it has completed its acquisition of a selected majority of the assets of the Specialty Plastics business segment from Ferro Corporation for USD 91 million in cash. The agreement to acquire the assets was first announced on June 4, 2014. The acquisition includes four facilities located in the United States as well as operations in Spain.

The Specialty Plastics segment is a global supplier of custom engineered plastic compounds, colorants and liquid coatings. The business offers a broad portfolio of proprietary products and recognised brand names serving a wide range of end markets including packaging, transpor tation, construction, appliances and agriculture. The acquisition is expected to be accretive to adjusted earnings per share. A. Schulman anticipates achieving approximately USD 5.5 mil l ion in synergies within 12 to 18 months following the close of the transaction, driven primarily by sourcing activities and plant efficiency actions.

Chemical Products Finder | November 2013 | 59

Industry NewsCEW


PPG to Acquire Consorcio Comex at $ 2.3 billion

Kopper Plans for a Naphthalene Plant

Pit tsburg, USA: PPG Industr ies has reached a def in i t ive agreement to acquire Consorcio Comex, S.A. de C.V. (Comex), an architectural and industrial coatings company with headquarters in Mexico City, Mexico. The transaction is valued at USD 2.3 bil l ion and is subject to regulatory approvals and customary closing conditions.

Comex manufactures coatings and related products and sells them in Mexico and Central America through approximately 3 ,600 s tores that are independent ly owned and operated by more than 700 concess iona i res. Comex a lso se l l s i t s products through regional retai lers, wholesalers and direct sales to customers. The company has approximately 3,900 employees, eight manufactur ing faci l i t ies and six distr ibution centers, and had sales of approx imate ly USD 1 b i l l ion in 2013. Comex is a pr ivately-held company that was founded in 1952.

„ C o m ex i s a h i g h - q u a l i t y, w e l l - m a n a g e d bu s i n e s s w i t h a l o n g h e r i t a g e o f e x c e l l e n t c u s t o m e r s e r v i c e a n d lead ing, wel l - recognised reg ional brands. The acquis i t ion i s v e r y c o m p l e m e n t a r y t o P P G a s i t a d d s a l e a d i n g a r c h i t e c t u ra l c o a t i n g s bu s i n e s s i n M ex i c o a n d C e n t ra l Amer ica, a reg ion where we have negl ig ible arch i tectura l c o a t i n g s p r e s e n c e ,‰ s a i d C h a r l e s E . B u n c h , C h a i r m a n and CEO, PPG.

Pittsburgh, USA: Koppers Holdings Inc wil l be applying for various environmental permits as it investigates the possibility of consolidating its Nor th American tar distil lation operations. „This is another step in Koppers continual process of evaluating opportunities to improve the long-term operating structure of our carbon materials and chemicals business.

One of the most promising scenarios currently under consideration involves consol idat ing our tar dist i l lat ion operat ions, which would require us to relocate naphthalene production from our Follansbee, West Virginia facility to our Stickney, Illinois facility,‰ said Walter W Turner, President and CEO. Turner continued, „A potential plant consolidation in Nor th America would provide Koppers with its first full-service plant that would include coal tar distil lation as well as downstream distil late and chemical production of naphthalene and phthalic anhydride. This would allow us to better serve our customers through a more consistent quality, production and delivery of product while also effectively addressing our goal of being more cost competitive. I expect that we will make a decision within the next several months, once the analysis is completed.‰

The company emphas ised tha t any dec is ion concer n ing this matter was tentat ive and would only become f inal ised after fur ther explorat ion and discussion with al l potent ial ly affected employees and union representatives. If a decision i s ac tua l l y made to move fo rwa rd , i t i s poss ib l e t ha t a new naph tha lene un i t cou ld be ope ra t i ona l a t S t i ckney in ear ly 2016.

DIC to Build Its 1st PPS Compounds Plant Foster Wheeler Bags EPCM Contract from Owens Corning

Tokyo, Japan: DIC Corporation has resolved to build i ts f irst polyphenylene sulf ide (PPS) compounds plant in the PeopleÊs Republic of China (PRC) in the city of Zhangjiagang, Jiangsu Province. The new plant, total investment in which wi l l be approx imate ly yen 1.3 b i l l ion (yuan 77.3 mi l l ion) , w i l l be located within the site occupied by wholly owned subsidiary DIC Zhangjiagang Chemicals Co Ltd which produces synthetic resins, among others. Annual production capacity wil l be 6,000 tonnes. The construct ion is expected to begin as soon as off icial building permits are secured and would be completed by the end of 2015.

Whi le the global demand for PPS compounds cont inues to grow at 6-8 per cent annually, annual growth in demand in the PRC, which leads the wor ld in automobi le product ion, is est imated at wel l above 10 per cent . Market expansion continues to encourage leading global automobile components manufacturers to set up operat ions in the PRC, whi le the need to reduce foreign exchange and logistics r isks among others has spurred increased interest in local procurement of PPS compounds from such manufacturers. Building a PPS compounds plant in the PRC wil l thus posit ion the company to respond to the needs of customers thereby facil i tat ing its ful l-scale entry into the local PPS compounds market and to expand its sales of these products.

Zug, Swi tz er land: Foster Wheeler AG announced that a subsidiary of its Global Engineering and Construction Group has been awarded an engineering, procurement and construction management contract by Owens Corning for a new composite materials manufacturing facility in Gastonia, North Carolina. The Gastonia operation will support growing customer demand for glass non-woven products serving the global building materials market. Non-woven products feature enhanced aesthetics, mould and fire prevention, and corrosion resistance.

The engineering, procurement and early construction work was included in the companyÊs first-quarter 2014 bookings and the balance of the construction management scope is expected to be released later in 2014. „We are very pleased to have been awarded this contract by Owens Corning. This project will be executed by our Cary, NC, team, part of our Process & Industrial (P&I) Division in the US. This award reflects the strong relationship our P&I Division has developed with Owens Corning.‰ said Roberto Penno, Chief Executive Officer, Foster Wheeler Global Engineering and Construction Group. Foster WheelerÊs scope of work is expected to be completed by the end of 2015.

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UP Govt Confers Young Scientist Award on Dr Surya P Singh

LLNL Researched Manufacturing 3D Metal Parts Efficiently

L i q u i d C r y s t a l s E n h a n c e E f f i c i e n c y as Lubricant

Hyderabad, Ind ia : T h e U P G o ve r n m e n t h a s g i ve n t h e honourable Young Scient is t Award for the year 2014 to Dr Sur ya Prakash Singh for h is great contr ibut ion in the f ie ld of technology and sc ience.

Singh is a scientist in Hyderabad, working at the Centre for Science and Industr ial Research-Indian Institute of Chemical Technology (CSIR-IICT). Dr Singh was given the award by UP GovernmentÊs Council of Science and technology (CST). He is presently working in the Division of Inorganic and Physical Chemistry as a scientist at CSIR-IICT, Hyderabad.

CST awarded Dr Singh wi th the Young Scient is t award for h is great contr ibut ion in the f ie ld of chemical sc iences and solar energy research. He was also awarded the NASI-Young Scient ist Plat inum Jubi lee Award in 2012 for h is contr ibut ion in th is f ie ld . In ear ly 2013, he was e lected as the Associate Fel low of the Andhra Pradesh Akademi of Sc iences.

Livermore, USA: Lawrence Livermore National Laboratory (LLNL) researchers have developed a new and more efficient approach to a challenging problem in additive manufacturing - using selective laser melting, namely, the selection of appropriate process parameters that result in parts with desired properties. Selective laser melting (SLM) is a powder-based, additive manufacturing process where a 3D part is produced, layer by layer, using a high-energy laser beam to fuse the metal powder particles. Some SLM applications require parts that are very dense, with less than 1 percent porosity, as the pores or voids are the weakest part of the material and most likely would result in failure. But building functional parts and components to specific standards and performance specifications can be challenging because a large number of parameters must be set appropriately. Some of the key parameters include laser power, laser speed, distance between laser scan lines, scanning strategy and powder layer thickness. As a result, there is a need for a reliable and cost-effective approach to determine the right parameters to develop parts with such desired properties as high density.

LLNL researchers have developed an efficient approach, based on simple simulat ions and exper iments, to ident i fy opt imal parameters to pr int 3D high-density metal par ts. To know more about the research log on to https://www.llnl.gov/

Freiburg, Germany: Thanks to a new lubricant, small gears can run with vir tually no friction. Made from liquid crystalline fluid, these lubricants drastically reduce friction and wear. Although lubricants are widely used, there have been almost no fundamental innovations for this product in the last twenty years. Together with a consortium, the Fraunhofer Institute for Mechanics of Materials IWM in Freiburg has developed an entirely new class of substance that could change everything; l iquid crystall ine lubricant. Its chemical makeup sets it apart; although it is a liquid, the molecules display directional properties like crystals do. When two surfaces move in opposite directions, the liquid crystal molecules between the two surfaces align themselves so that the frictional resistance is extremely low. This enables nearly frictionless sliding.

Liquid crystals are known for its use in liquid crystal displays (LCDs) in TV screens, mobile phones or touchscreens. The unusual idea to use them as a lubricant was proposed by Nematel GmbH, which then turned to Fraunhofer IWM to see if it would work. There, Dr Tobias Amann applied the lubricant made from liquid crystal between two metal work-pieces. The researchers at Fraunhofer IWM discovered that liquid crystal is well suited for lubricants because its molecules are long and thin. „When used as a lubricant between two surfaces that slide past each other, the molecules become aligned in parallel to each other in ordered boundary layers,‰ explains Dr Andreas Kailer, Acting Director Tribology business unit, Fraunhofer IWM. These layers are very stable but slide easily over each other, keeping friction and wear to a minimum. Still, much was missing before a liquid crystal lubricant suitable for practical applications could be developed. Read more on http://www.fraunhofer.de.

Leipzig, Germany: A recent study conducted by the Institute for Environmental Sciences Landau together with the Helmholtz Centre for Environmental Research (UFZ) and fellow scientists from France (University of Lorraine and EDF) and Switzerland (Swiss Federal Institute of Aquatic Science and Technology - EAWAG) shows that this target is unlikely to be met due to the high levels of toxicants in the water bodies. One of the reasons, current measures for the improvement of water quality do not account for the effects of toxic chemicals. The study demonstrates for the first time on a pan-European scale that the ecological risks posed by toxic chemicals are considerably greater than has generally been assumed. The current study reveals for the first time on a large scale the ecological risks emanating from chemical toxicants for several thousands of European aquatic systems. Chemical toxicity represents an ecological threat to almost half of all European bodies of water. Actual s tate of European aquat ic ecosystems is presumably even worse. Together with their French and Swiss fe l low researchers the sc ient is ts f rom Landau and Leipzig have investigated the exceedance of r isk thresholds in the r iver basin of major stream networks, such as the Danube and the Rhine River at a pan-European level. For the first t ime, the extent to which r isk thresholds were exceeded for three groups of organisms, namely f ish, inver tebrates and algae / pr imary producers, was estimated for these major r iver basins. Log on to ht tp: / /www.ufz.de/ to read more.

European Waters More Polluted than Earlier Estimation

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One of its Kind GHG Metre Developed

Eucalyptus: a Rich Source for Fuel and Fibre

New Packaging Technology by Dow and Ampac

Moscow, Russia: Moscow Institute of Physics and TechnologyÊs (MIPT) Laboratory for the Spectroscopy of Planetary Atmospheres has come up w i th a h igh - reso lu t ion met re to gauge the concentration of gases in the atmosphere with unparalleled precision. The paper, authored by Alexander Rodin, Ar tem Klimchuk, Alexander Nadezhdinsky, Dmitry Churbanov and Maxim Spiridonov, says that the new spectrum radiometer is 100 times more precise than the best available near-infrared spectrometres.

Tracking down carbon dioxide, methane and other gases with simultaneous determination of their concentrations at different altitudes is necessary, in particular, for research into global warming. A current lack of data on the distribution of greenhouse gases also compromises the forecasting and, consequently, the development of appropriate response measures. This is because in order to create a dense network of monitoring stations, many large, sophisticated and expensive spectrometres are needed.The metre created by the Russian scientists is distinctive not only for its very high resolution, but also for its easy maintenance. The authors of the paper stress that their metre is far less susceptible to external disturbances compared with existing analogues. Its performance depends to a lesser extent on vibration, humidity and exposure to both low and high temperatures. You can read more on http://mipt.ru/en/

Walnut Creek, USA: EucalyptusÊ prodigious growth habit has caught the eyes of researchers seeking to harness and improve upon i ts potent ia l for enhancing susta inable b io fue ls and biomaterials production, and provide a stable year-round source of biomass that doesnÊt compete with food crops.

The international effor t to sequence and analyse the 640 million base pair genome of Eucalyptus grandis engaged more than 80 researchers from 30 institutions, representing 18 countries. Combing through the 36,000-plus genes found in Eucalyptus, the researchers homed in on those that may influence the production of secondary cell wall material that can be processed for pulp, paper, biomaterials and bioenergy applications. Approximately 80 per cent of the woody biomass in a Eucalyptus is made of cellulose and hemicellulose, both long chains of sugars, with the remaining biomass primarily comprised of lignin, the tough „glue‰ that holds it all together.The eucalyptus team identified genes encoding 18 final enzymatic steps for the production of cellulose and the hemicellulose xylan, both cell wall carbohydrates that can be used for biofuel production. Log on to http://jgi.doe.gov/ to read more.

Midland, USA: Dow Packaging and Specialty Plastics, a leader in mater ia l science for the packaging industr y, announced that f lexible packaging conver ter, Ampac, is now a l icensee of PacXper t Packaging Technology and is authorized to sell packages in Nor th America. PacXper t Technology enables the conversion of large r igid plastic containers to easy-to-carry, f lexible packaging options. Dow trademarked the technology as PacXper t after acquir ing the global license to the innovative Smar t Bottle technology on which PacXper t is founded.

The l ightweight packaging design of fers a f i tment c losure and integrated ergonomic dual handles, enabl ing precision pouring, easy reclosing and convenient carrying. The functional performance of the product is even more impressive with visually-transparent packaging that allows consumers to see the contents within and the opportunity to print on all four sides. The PacXpert Technology manufactured and sold by Ampac in Nor th America under the brand name Ampac CubePak, has the potential for use in numerous household, institutional, food service and industrial applications including liquids and dry good products.

Vienna, Austria: Using miniaturized laser technology, a tiny sensor has been built at the Vienna University of Technology which can test the chemical composition of liquids. They are invisible, but perfectly suited for analysing liquids and gases; infrared laser beams are absorbed differently by different molecules. This effect can for instance be used to measure the oxygen concentration in blood. This technique has now been miniaturized and implemented in the prototype for a new kind of sensor.

Specially designed quantum cascade lasers and light detectors are created by the same production process. It is bridged by a plasmonic waveguide made of gold and silicon nitride. This new approach allows for the simple and cheap production of tiny sensors for many different applications. Simple solid-state lasers, such as the well-known red ruby laser, consist of only one material. Quantum cascade lasers, on the other hand, are made of a perfectly optimized layer system of different materials. That way, the properties such as the wavelength of the laser can be tuned. When a voltage is applied to the layer structure, the laser starts to emit light.

Now a method has been developed to create a laser and a detector at the same time, on one single chip, in such a way that the wavelength of the laser perfectly matches the wavelength to which the detector is sensitive. As the wavelength can be influenced by changing the design of the layered structure, this sensor concept can be applied to a wide variety of molecules such as carbohydrates or proteins, for many different applications in chemical, biological or medical analytics. Read more on http://www.tuwien.ac.at/en/

Know Chemical Composition of Liquids with Chemical Sensor on a Chip

There is more CO2 in the atmosphere than at any point in the last 8,00,000 years.


CEW Marketing Initiative

Aker Commences Work at Upgraded Facility

Pune, India: Aker Solutions India recently inaugurated its newly upgraded office in Baner, Pune. Helge Tryti, Director, Innovation Norway, India and Commercial Counsellor, Royal Norwegian Embassy, New Delhi, was the guest of honour at this event. Senior executives from Aker Solutions in Norway were also present. „Going forward, we see a clear potential to leverage our strengths both in the upstream and the downstream sectors,‰ said Sanjay Joshi, India Country Manager, Aker Solutions.The office facility has modern infrastructure and is compliant with international safety norms. The new workplace will have the capacity to house over 600 employees. It contains facilities including a training center, video conferencing units and other communication equipment that wil l improve real - t ime coord inat ion wi th Aker Solut ions Ê o f f ices across the world.

Bengaluru, India: SABIC recently released its 2013 Sustainability Report, entitled ÂCreating Lasting ValueÊ, reflecting the companyÊs commitment to continuously create more sustainable business processes and more value for its stakeholders. The report shares the latest information on the companyÊs progress on various dimensions of sustainability value creation. It highlights performance in creating economic value, protecting natural capital, developing human capital and building social and community relationships.

Among the highlights of the 2013 repor t are, SABICÊs approach to developing the highest standards of ethics, integr ity, and compliance throughout its global business culture; Accounting of the companyÊs progress in achieving previously identified goals and actions, providing a transparent review of the successes and challenges for the company during the year; Analysis of r isks and oppor tunities considered most impor tant for the company and its stakeholders; Linkage of SABICÊs sustainability strategy to i ts 2025 business strategy; SABICÊs impact on economic growth through its economic value creation for Saudi Arabia and the other regions around the world where it operates; SABICÊs por tfolio of products and their impact on the sustainability needs of key markets; Progress toward our environmental footpr int goals and a new metric around our use of recovered CO2 as a feedstock; Major improvements in contractor safety; The vital contr ibution of employee volunteers to our Corporate Social Responsibility; Proactive Product Safety processes that seek to advance the science of our products; and appl icat ion of sustainability across the critical supply chain processes of our business and the benefits achieved.

SABICÊs Sustanability Report Indicates Progress

Glatt Engineering Opens New Office

Swissi Process Safety to Work Under TÜV SÜD Banner

AgilentÊs Triple Quadrupole Ideal for Quantification

New Delhi , India: Ag i len t Techno log ies Inc in t roduced a new flagship tr iple quadrupole mass spectrometer for LC/MS applications requir ing the highest sensitivity and robustness. The Agi lent 6495 LC/MS Tr iple Quadrupole system is ful ly integrated with AgilentÊs 1200 series UHPLC systems to deliver turnkey performance. The newest addition to the 6400 LC/MS Triple Quadrupole Series, the 6495 is designed for both routine laboratory analysis and for the most challenging quantitation in life sciences, food and environmental applications.

The Agilent 6495 LC/MS Triple Quadrupole system is a high-performance instrument that suppor ts quantitative analysis in a range of challenging applications. Environmental and food science laboratories can use it to screen, identify and quantitate multiple pesticide residues. Pharmaceutical researchers can use it for r igorous drug and protein quantitation. The system is designed for easy setup and operation, and requires less maintenance and downtime than other LC/MS instruments. It will increase productivity and streamline laboratory workflow by providing the highest-quality results at rapid, UHPLC-speed.

Delhi, India: Glatt (India) Engineering Pvt Ltd has inaugurated their new office in Delhi. The Delhi office currently serves India, Bangladesh, the Middle East and African Markets and will look forward to penetrating into countries like Indonesia and Vietnam. Having started operations in India in 2008, it specialises in the provision of consulting, engineering services exclusively to the bio-pharma and pharma industry and has completed 10 projects so far. Since January this year, Glatt (India) Engineering has expanded its ambit beyond pharma and biotech projects into food and fine chemicals. Glatt (India) is going to offer the Indian Market its process technology on continuous fluid bed for the chemical and food industry.

Munich, Germany: To highlight its affi l iation with TÜV SÜD, Swissi Process Safety GmbH will operate under the blue Octagon of the international technical services group and the addition Âa member of TÜV SÜD GroupÊ in the future. TÜV SÜD acquired the Swiss company, which provides premium services to the process industry, one year ago to complement its portfolio of services for the pharmaceutical, chemical and process industries. „In the future, we will offer our clients our established laboratory and consultancy services under the blue TÜV SÜD logo. Our shared clients will benefit from an expanded portfolio of services resulting from our companyÊs integration into the international TÜV SÜD network‰, says Dr Georg Suter, Managing Director, Swissi Process Safety GmbH.

Swissi Process Safety GmbH is among the leading providers of laboratory services for determining data and reaction parameters as well as consultancy services that focus on thermal process safety, explosion protection and safety assessments within the scope of the Seveso Directive in Europe. The company is the market leader in Switzerland.


CEW Marketing Initiative

Salt idin Most Effect ive against Mosquitoes and Ticks

Lanxess Successfully Tests Membrane Elements for Desalination

Leverkusen, Germany: The whole world will be in a soccer frenzy from June 12 to July 13, 2014. Those fans who will be rooting for their teams outdoors at a public viewing area. Fans in this case should make sure they have effective mosquito and tick repellent, such as a product based on the active ingredient Sal t id in f rom Sal t igo GmbH. The Sal t igo act ive ingredient Saltidin in chemical terms 1-(1-methylpropoxycarbonyl)-2-(-2-hydroxyethyl)piperidine or simply icaridin is not an insecticide. It simply repels insects by acting on their odorant receptors, disabling their ability to recognise humans as blood donors.

The act ive ingredient is used by numerous manufacturers worldwide to formulate insect repellents. It does not irritate the skin and has already provided effective protection to millions of people. Saltidin repels a variety of blood-feeding insects, such as ticks. The imperceptible bites from this 350 million year-old species of mite can transmit bacteria and viruses into the body, causing ser ious diseases such as Lyme and tick-borne encephalit is. According to the Robert Koch Institute, the number of tick-borne encephalitis cases in Germany doubled from 2012 to 2013. But a variation of the virus is also prevalent in many European countries and numerous regions of Asia, such as Siberia, China and Japan, where it occurs over a very large geographic area.

Leverkusen, Germany: Specialty chemicals company Lanxess showcased its new Lewabrane RO S product line at this yearÊs Singapore International Water Week (SIWW) in early June 2014. The family of products currently encompasses three grades of spiral-wound membrane elements for reverse osmosis (RO), which were special ly developed for seawater desal inat ion. Alexander Scheffler, Director - Membrane Business, LANXESS Liquid Purification Technologies business, says, „Energy-efficient, eco-fr iendly desal inat ion technologies l ike reverse osmosis play a major role in this field. For this and many other areas of water treatment, Lewabrane membrane elements are ideal in combination with our Lewatit range of ion exchange resins.‰

Prior to official market introduction, the new membrane elements were tested for several months in desalination plants on the Red Sea in Egypt. Engineer Claus Mertes, Managing Director, Deutsche MeerwasserEntsalzung (DME) GmbH, a Duisburg-based company contracted by Lanxess to conduct the tests, presented the results at the SIWW in his presentation, ÂSWRO Membrane Performance Pilot Plant Test Egypt.Ê He reported that the new Lewabrane RO S elements meet or exceed the relevant industrial standards in continuous operation (24/7) under real conditions. They show high salt rejection even under fluctuating temperatures, salt contents and pH values, meaning that they deliver permeate in consistently high quality.

B a y e r P e a r l S e t s - u p N e w H e a d q u a r t e r s for Expansion

Holmatro now Offers Industr ia l Solut ions

Dubai, UAE: The polyurethane systems house Bayer Pearl has broken ground for construction of its new headquarters in the Dubai Investments Park. The site will feature research, development, and application laboratories as well as a demonstration centre for the use of high-quality materials. The construction contract has been awarded to Amana Constructing and Steel Buildings, and the work is scheduled for completion next year.

The joint venture is par t of the global network of polyurethane systems houses of Bayer Mater ial Science, one of the leading manufacturers of polyurethane raw mater ials worldwide. Bayer Pearl develops high-tech solutions for the insulation of buildings and piping, and for the automotive industry.

Such chal lenges can be met with polyurethane r igid foam, for example, which thanks to its excellent thermal insulation proper ties makes an impor tant contr ibution to conservation of scarce natural resources. Polyurethane mater ials also make it possible to design cars that weigh less and are therefore more fuel-eff icient.

Raamsdonksveer, Netherlands: Holmatro has now built up broad experience and good references in the field of ÂcustomisedÊ solutions in the world of heavy lifting and movement. Now the time has come for the company to officially publicize its innovations, under the new name Âindustrial solutions.Ê

„With Industrial Solutions we demonstrate that we go fur ther than just developing and manufactur ing standard hydraul ic equ ipmen t . The demand fo r cus tomer -spec i f i c so lu t i ons has increased enormously over the years. We now have a complete team of engineers and exper ts, dedicated to finding the r ight solut ion for var ious di f ferent chal lenges together with the customer‰, says Niels Rombouts, Director, Holmatro Industrial Equipment.

Whether it be the computer-controlled synchronized positioning of heavy loads, the horizontal movement of industrial objects and installations of exceptional sizes in limited surroundings or the larger ver tical movements of heavy loads with accurate control, nothing is impossible for the Holmatro Industrial Solutions team.

Coopera t i on w i th the cus tomer, ease o f use and sa fe ty are recurr ing star t ing points for the development of these ÂcustomisedÊ solutions. All Holmatro products are developed, manufactured and thoroughly tested in-house, resul t ing in real Dutch quality and reliability. The products have a life span that extends for years, which can moreover be extended by a comprehensive service program.


News FeaturesCEW

India Needs Corrosion Free Infrastructure to Ensure Human Safety: SuriIndia loses ̀ 80,000 crore per annum on account of corrosion in manufacturing, petroleum, chemical and fertilisers, oil & gas, transportation, power, highway and railways sectors. According to reports, proper management can save up to 25 per cent of the money spent by companies on account of corrosion in different sectors.

Yatinder SuriCountry Head Outokumpu India Pvt Ltd

Not just in India, but industries across the globe face calamitous consequences of unpleasant

incidents caused due to corrosion, one of the latest being the chemical spill that contaminated West VirginiaÊs biggest drinking water supply for days. In a recently released report, The US Chemical Safety Board revealed that Âholes in a tankÊs floor and roofÊ might have been caused due to corrosion. The board has reportedly collected the Âmetal and other materialÊ to investigate the possible failure mode for the tanks.

The scenario is similar in India or rather more unsafe as there have been a number of deaths due to the incidents that occurred because of utter negligence of the companies towards the deteriorating infrastructure. Structures must be corrosion free and hence the significance of corrosion resistant material cannot be ignored.

Duplex Steel We interact with Yatinder Suri, Country Head of Outokumpu India Pvt Ltd - a company that is creating awareness about the innovative corrosion resistant material amongst project owners and end users by engaging consultants and specifiers, organising seminars and workshops and participating in different conferences to exhibit immense potential of different grades of steel to understand ÂDuplex SteelÊ a material that is getting a push in the industry.

According to Suri, „Duplex Stainless steel was invented by Outokumpu in mid-thirt ies for pulp and paper sector in Sweden but i t was commercial ly manufactured in late eighties and became a preferred choice for most corrosive applications in the nineties.‰

The Duplex story started to unfold in India after Outokumpu was set up in late 2006. At the t ime, there was no awareness. In 2008, i t started an aggressive campaign with the support from OutokumpuÊs R&D wing and with visibly posit ive signs of acceptance the company witnessed remarkable demand in oi l & gas, chemical processing, desalination, rai l and road bridges and also, in the rai lways, he adds. The other high-end grades gaining acceptance are super austenit ic 904L and 253MA for high temperature areas. Even stabil ised ferrit ics have gained immensely for ABC segments.

Commenting further on product development, he reveals, „Enhancing corrosion resistance and substantial increase in mechanical strength are the guiding principles on product development and improving sustainability in everything we do which makes us the best in class. We are the global benchmark in sustainability as per Dow Jones in steel segment. The carbon free energy used in our manufacturing process is as high as 90 per cent and the recycled proportion of raw materials is above 80 per cent.‰

“Enhancing corrosion resistance and substantial increase in mechanical strength are the guiding principles on product development and improving sustainability in everything we do which makes us the best in class...”


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- Harshal Y Desai

Ensuring Human SafetyDespite the fact that the consumption of innovative material in Indian industry has increased, it is stil l not as good as the consumption of such material in other parts of the world. „Duplex usage is surely lagging behind in India as compared to the consumption in rest of the world due to two reasons ie, late start and slow growth in manufacturing sector in the country,‰ Suri agrees. However, he observes that the usage has increased in various applications such as oil tanks at refineries and ports, evacuation pipelines in natural gas fields, heat exchangers in petrochemicals, oil platforms, umbilicals in deep sea exploration, columns and tanks in leeching process in mines, desalination process to convert sea water into drinking water, and rail and road bridges in coastal areas and hilly areas and even for rail coaches and wagons.

The benefit of Duplex lies in weight reduction. You gain more strength with less material. Suri explains that when a carbon steel tank is replaced with Duplex, the biggest savings can be gained in the manufacturing as well as maintenance phases. There are potential savings exceeding 25 per cent in life cycle cost. „Outokumpu Duplex has proven its worth around the world and many success stories are being written in India as well,‰ he states.

Suri strongly feels that only corrosion free infrastructure can ensure human safety and add cost advantages through lowest life cycle cost.

He draws attention to some of the recent horrible accidents and opines that safety of human life must not be treated casually. „Frequently, we read news about deaths of innocent Indians due to carelessness of the corporates in maintaining their assets. Leakages from oil pipelines leading to contamination of agricultural land in the South, leakages from oil tanks leading to fire, explosion and deaths, or more recently gas pipelines leakage that killed more than a dozen innocent Indians, are some of these agonising incidents.‰

„The government-owned corporates in oil sectors have super profitability and therefore they must have excellent human safety policy too. Why should they be allowed to compromise on costs and use inferior products which corrode and fail and kill innocent citizens?‰ he questions.

India: An Important Destination Outokumpu has introduced various new grades to improve the product basket with respect to the applications in 2014. Grade 1.4220 has high strength and is high corrosion resistant compared to 316. In Duplex family, new grades FDX25 and FDX27 have been added with improved formability. The company has introduced NORSOK approved EDX2304 which has enhanced mechanical properties compared to 2304 grade for the oil and gas sector. Similarly in ferritic range a better corrosion resistant grade has been introduced as 1.4622. Suri claims that all these grades offer an excellent cost competitive advantage to end users in critical segments.

India is an important destination. On companyÊs growth in the country, Suri reveals that India is a cash-strapped nation and it needs to spend each penny in its new investments wisely. This means opting for sustainable materials which offer the lowest life cycle cost and improved availability of infrastructure with no disruption. „We see a great future for our new age materials in the Indian context,‰ he asserts. He reveals more on the companyÊs investment plans and says that the company indeed had some plans for India in 2008, but due to imposition of import barriers, it could not happen, and now the future plans entirely depend on the policies of the new government. „We are very selective about our local partnerships since our compliance levels must be matched on the code of conduct, sustainability vision, and ethical policies,‰ he informs. „We are serving the domestic needs of the emerging applications directly and we also have our stock arrangement in Mumbai as our committed support for the SMEs who need reliable quality products. We are committed to localisation and we are will ing to support downstream manufacturing and processing companies to make world class downstream products available locally. Our vision is to create a world that lasts forever and for sure, India is an important part of this vision.‰

Suri also updates on the recently changed operational model and leadership within the company and says, „December 2012 was a historical moment as we started the journey of the new Outokumpu. Combining the power of two Outokumpu and Inoxum we now offer the broadest range of products and strongest technical know-how of any stainless steel provider.‰

The company is in a unique position to work closely with its customers and partners around the world, to create materials for the tools of modern life, and for the worldÊs most critical problems · like clean energy, water and efficient infrastructure. „We are building on our strong heritage in product quality and technical expertise while becoming even better at customer orientation, speed and reliability. Together with customers, we build a more sustainable world,‰ Suri concludes.

Only corrosion free infrastructure

can ensure human safety and add

cost advantages through lowest

life cycle cost.

CEW Features


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EPC industry could not have asked for anything more after the announcement of investments to the tune of ` 45 lakh crore during the 12th Five Year Plan planned by the government to give a boost to developing infrastructure and thereby providing the much-needed thrust to the growth of IndiaÊs manufacturing sector. But even after two years into the 12th Five Year Plan, the

industry is still awaiting any announcements of new projects, which were expected to be cleared 18-20 months back; a major setback for the Indian and international EPC players focused on projects in the Indian market.

Globally, EPC business has become highly competitive and extremely challenging with the increasing scales and complexities of projects. Tighter time lines and necessity to adhere to compliance norms fur ther heightens the competition for the contractors in other world markets. There is no scope for compromise on standards in international markets where project owners factor safety as a part of the cost all through the five stages of the project viz pre award, pre planning, project planning and design, project execution and monitoring to project closure and handover. It is critical for the EPC companies to enhance the project management standards as per the global norms lest they may not qualify even for the bidding.

EPC players are mandated to comply with the regulatory norms, policies and legal norms that vary from country to country mandate the contractors to have a flexible approach to adapt to the local regulatory structures and work environments.

Lack of new projects in local market has drawn the Indian EPC players to the regions which are witnessing a surge in the number of new projects in the Middle East, North Africa, USA and South East Asia. Although some of the Indian players have made significant in-roads in the international markets and many Indian small scale manufacturers of process equipment are now preferred vendors for some of the leading international project owners and contractors, India, still continues to be perceived as a low-cost production house rather than an EPC business destination in its true sense in global supply chains.

Many international companies have set up their engineering centres in India to support the international projects; however, scepticism has continued to prevail in the international community in terms of quality safety and timely project deliveries in the Indian context. On the other hand, in India, EPC contractors continue to face the challenge because of limited number of projects in the market due to various reasons right from complex approval processes, re-tapism and policy paralysis which result in long waiting periods sometimes even stretching up to few years. An Ernst & Young survey has revealed that 42 per cent of infrastructure projects are delayed due to some or the other reasons. These are perhaps some of the key reasons why we do not see international players in the infrastructure, water and power sectors.

In India, project owners from PSUs have continued to award EPC-based projects while EPCM continues to be prevalent across the private players where they can have complete control on the project. One of the key issues with the EPC-based contracts is the practice of awarding the contracts to the lowest bidder, which can be a risky affair in the long term for all the stakeholders.

Globally, learning from the experience, both the project owners and contractors are now more open to experimenting with new contracting models thus creating win-win situations by sharing risks and rewards and working together towards project deliveries. And it is time for Indian project-owners to star t looking at the new models of contracting that would help in creating a more competitive environment.

With the new stable government in place, everyone is hopeful that the projects which were put on the back burner will be cleared and there will be no shortage of projects over the next 3-4 years across infrastructure, oil & gas and power sectors.

Additionally, implementation of faster project clearance systems would attract the investors and the engineering contractors to provide much needed thrust to the development infrastructure to support industrial growth and economic development in the country.

- Mittravinda Ranjan

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CEW Features


L&T Hydrocarbon: Making the Most of the ‘Spin off’

Under the able guidance of its Chairman A M Naik, L&T had executed the idea to create a

separate wing to tap global opportunities at the right time, and the move later got a boost with the appointment of Krishnamurthi Venkataramanan as the new Chief Executive Officer and Managing Director of the company. KV, as he is profoundly known in the company or rather in the industry, is believed to ‘bolster the company’s international presence’ by forming ‘a dedicated International Business Development Cell.’

The company is all set to compete with some of the biggest players in the engineering and construction domain as it sets up its international headquarter in Sharjah to grab its own piece of the pie in West Asia, a region that is witnessing a boom in hydrocarbon. And as some of the analysts believe, with a proven track record and necessary infrastructure in the region, the company is reasonably capable of capturing a remarkable market share.

Mission - L&T-2: Replicating Indian Success StoryK Venkatramanan shares his views on these development and states, “Middle East’s hydrocarbon market is much

bigger than Indian hydrocarbon market. L&T has already invested hugely in the region namely in a heavy fabrication shop and an offshore yard in Sohar, Oman, an automation factory and a control panel factory in Jebel Ali and Saudi Arabia, respectively and plant and machinery in Sharjah. Besides a robust manufacturing infrastructure, we are also building a strong management team – a combination of local and Indian professionals – to accelerate the growth of our business in the region.”

“We have named this project as L&T-2, and under this project, we are determined to replicate our Indian hydrocarbon success story in the region,” Venkatramanan reveals. He clarifies that though Middle East (ME) is a very open and cash-rich market, perhaps the best in the world, it is equally competitive and challenging, and thus it is not easy to register extraordinary success here quickly unless a company is very sharp in execution and has mastered the methods to control the cost.

“When you are new to customers, they are somewhat apprehensive of your capabilities, does not matter how efficient you are. It thus takes time to build a rapport with the clients. It is not easy to work abroad unless you have a vision and a sustainable plan,” Venkatramanan states. “Infrastructure is not all that you need but at the same time you must have a team that understands local geography, local working conditions, people who have got the soft skills and understand nuisances pertaining to the business. And more importantly, you must be willing to invest hugely in the initial period. As soon as you complete one or two projects, you find it easy to build a relationship with the customers. With every new project, we are learning more about these geographies. Customers’ expectations vary dramatically and you really got to be quick in grasping their expectations,” he explains further.

Expanding HorizonsVenkatramanan did not deny the possibility of expanding company’s business horizons to South East Asian

The exercise ‘Lakshya’ – undertaken to simplify company’s portfolio by forming independent companies – turned out be a substantial move for corporate giant Larsen & Toubro Limited (L&T), especially when it formed L&T Hydrocarbon Engineering Limited (LTHE) as the arrangement indeed brought attention, autonomy and accountability to this 100 per cent subsidiary that in a recent development bagged ` 5076 crore order from Kuwait Oil & Gas Company (KOC). CEW interviews Krishnamurthi Venkataramanan, CEO and MD, L&T, to seek more insights into the development within the company.

“Infrastructure is not all that you need but at the same time you must havea team that understands local geography, local working conditions, peoplewho have got the soft skills and understand nuisances pertaining to thebusiness. And more importantly, you must be willing to invest hugely ininitial period...”

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countries under L&T-2, and said that the company may surely focus on countries other than the ones in Middle East. “About 60-70 per cent of our focus under L&T-2 project is on Middle East, and 30-40 per cent is on South East Asian countries namely Indonesia, Malaysia, Singapore, etc, and to some extent on Vietnam. We may also expand our business to Kazakhstan and Azerbaijan in future,” he informs.

When asked how different i t is to work in the Commonwealth of Independent States (CIS) and South East Asian countries, Venkatramanan says that each country has got i ts own set of regulations. “Most of the CIS countries emphasise on engaging local labour. They want investors to do a substantial part of the manufacturing locally, especial ly i f you are into construction, you need to involve local people to some extent. And actually i t is good to start connecting with local sub-contractors as soon as possible because when you plan to work in these countries for a longer period of t ime, your associations with local players help you execute the project faster,” he adds.

The conditions are somewhat similar in South East Asian countries, where you are supposed to build partnerships with local utilities. “Malaysia is one such country where the government has a clear objective of promoting local manufacturing regardless of the fact that the company is owned by a domestic player or a foreign player,” Venkatramanan elucidates.

The company’s international business, in the last three to four year has already gone up by 25 per cent, and as Venkatramanan says, the company is trying to double its global presence in next 3-4 years.

Speaking about the US Market, Venkatramanan shares that as far as project business is concerned, the company is not very keen to spread its wings over the American market r ight away and is concentrating on the Middle East and other markets l ike South Asia and Africa. However, L&T is very much looking at supplying heavy engineering products to the US market which is

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gearing up for new investments and riding high on the shale gas sentiment. It wil l take some time for the company to build i ts presence in the sphere of project management in the US.

Standards and Margins “You cannot compromise with the standards at all,” he proclaims, “Especially when you are working in a market like Middle East, where already a number of foreign players – including some of the well-known companies from Korea and China – are present.” He reveals that if a company is not known to enhance the project management standards, it will not be allowed to participate in a bidding process in the first place.

He further explains, “As far as L&T is concerned, clients are already aware of our capabilities. They have seen this company growing year after year and that is the reason, we have been able to bag some of the esteemed projects in Middle East. On the other hand, we, leveraging on our experience, understand clients’ requirement to the tee.”

Venkatramanan is of the opinion that when a contractor works with a nationalised company it can always earn good margins. “But more importantly if a contractor knows how to do a job right, has a deep understanding of its business, understands the risks involved and pays attention to safety concern, it can surely earn profits in any market across the globe,” he avows. While highlighting the significance of ‘safety’ Venkatramanan says that “safety culture of an organisation is reflected by the employees’ approach.” He further shares insight into the Safety Innovation School at L&T Hazira.

On Union Budget 2014He also expresses his views on the union budget 2014. “It is indeed a good budget. The government seems to have allocated a good amount of fund to some of the ailing sectors. But now it needs to implement things that have been announced, and we are positive and hopeful that the government will actually get the ball rolling in days to come.”

The Safety Innovation School at L&T Hazira The school has about 10,000 sq.m area and houses several unique facilities which envisages the use of state-of-the art technologies, lecture halls, practical halls, simulation of hazardous site conditions thereby enhancing the effect of such safety education by experiencing live on-site activities and practical hazards prevailing at construction sites.

ObjectivesTo develop a strong safety culture in the organisation through transformational training.

World class centre of excellence for education and training in Occupational Safety and Health (OSH)

OSH education on project management in consonance with Vision of L&T with state of the art infrastructure

Achieving global benchmarking through institution that harnesses specific requirements of the industry

Charter Provide high quality occupational safety and health education in project management for all L&T employees and prepare them to be proficient as contributing members of project teams

Collate and disseminate the body of knowledge in safety in project management as practiced in global corporation through innovative courses.

Benchmark global OSH management practices and incorporate these practices in the curriculum through innovative and practical project oriented methods so that the learning is retained for longer time.

Collaborate with leading institutions of repute across the globe for research in project OSH management for enhancing excellence.

Develop and nurture a talent pool of project OSH management trainers from the practicing managers as a resource for the organisation

CEW Features


Breaking Boundaries, Leaping Beyond

To achieve excellence, an EPC company has to face many obstacles in the overseas markets, Bowden

starts the conversation. “Many onerous criteria have to be fulfilled. It is necessary to have the right qualification as the customers have a lot of experience of working with contractors and will always be seeking to not only expand but also to enhance the gene pool available to them. The complex registration process itself can take up to two years, depending on the market that it enters into. The contractor has to prove this mettle to work in the new country. And there are two ways they can enter into a new market; first, companies work as sub-contractor to another large contractor or second they may take up small projects to build up the portfolio. To achieve success on large projects immediately requires very strong customer focus and differentiated offerings, and is the exception rather than the norm.

According to Bowden, Essar has chosen the latter with 3-4 small projects and has already succeeded in Abu Dhabi; and is now eyeing to replicate the model in another country, Saudi Arabia. This is the scenario in the Middle East (ME) market and it is a much regimented one. While commenting on entering new or more difficult territories Alwyn Bowden says,

“You have a chance to demonstrate that you can do things that anybody else can do, and perhaps do them better, as there are few players who have any expertise in those countries.” Based on Essar’s track record in India, the company has just entered the Mauritanian market with a very large project, where the contract has come directly to the company.

Global MarketWhen asked about the other markets like South East Asia, Africa and US as compared to ME, Bowden says, “In South East Asia, some countries are regimented while others are not; there is a lot of competition as there are a number of strong Korean and Chinese companies with well-developed local contracting capabilities. The situation in Africa is different as it is not so well-organised. The lack of indigenous companies there makes it is easier for new players to enter the market. But finance remains a challenge everywhere.”

He adds, “USA is traditionally a stronghold of American contractors and it is a very

difficult territory. There are a lot of labour issues in USA and unions have to be dealt with. Historically, it is not an EPC market and tends more towards EPCM models. Only in the last few years, the EPC model is being considered in the States, after the likes of Samsung entered the market.”

In 2011, EPL was identified as the 2nd

fastest growing company and has grown in terms of the external business. Although the order books remain relatively flat, it has transformed considerably from 5 per cent revenue from external clients to around 50 per cent revenue from external clients now and from almost negligible revenue from overseas market to now around 40 per cent revenue from there. In terms of the global footprint, EPL is present in Papua New Guinea, Indonesia, Singapore, Myanmar, Middle East, UK, North America, South America and now, in Mauritania and Venezuela as well; thus the footprint has expanded greatly.

But if an EPC company aims at numbers, then Middle East is the obvious target. On

From its humble beginnings as a construction company in 1969 to the large conglomerate that it is today, Essar has not just been ‘successful’ in its journey but has also proved its caliber in the international markets. Under the ingenious leadership of its CEO, Alwyn Bowden, Essar Projects Ltd (EPL) has broken boundaries and expanded their footprint across the globe. The company has been ranked among the most admired companies in the country for the third year in succession.

In South East Asia, some countries are regimented while others are not; thereis a lot of competition as there are a number of strong Korean and Chinesecompanies with well-developed local contracting capabilities. The situationin Africa is different as it is not so well-organised. The lack of indigenouscompanies there makes it is easier for new players to enter the market.

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Chemical Products Finder | November 2013 | 57

Advt.indd 57 17-12-2013 12:21:18

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the other hand if the company envisions a different perspective then it is good to have a strategic plan in place. EPL’s strategy has been looking for key customers and following them into the territories they want to enter. Many customers have set their sight on Africa for the future.

Funding for ProjectsWhen asked about EPL’s strategy to get the funding for the international projects he replies that EPL’s international projects are all EPC-based contracts thus the funding is taken care of by the customers

CEWFeatures

themselves. But there has been a trend in recent times where contractors have to bring in the funding to secure the projects. He adds, “Having more support is nice but limited availability of funds is also a reality. Receiving support from India Exim Bank or through FDI is always welcomed but most of the times there is a limit to the investment at around USD 200-250 million. And this makes it difficult to secure major investments. It takes up to 18 months to secure the funds for a project from Exim Bank.” However, EPL has been very successful in garnering support from the financial institutions for its overseas ventures and is well placed to support projects in all of its target territories.

Working Style of EPLEPL prefers to do a mix and does not undertake all the construction activities by itself. Based on the circumstances, the decision is taken, but in the past its work model has succeeded. The company carries out the key activities that drive the project itself. Bowden states that this model of work was adopted for the Jurong Aromatics Complex. He says, “EPL took their workforce from India for the tank work as it was the most critical activity and the other activities like civil work, etc were given to local subcontractors.” EPL’s talent is mostly home grown; the company’s strong international teams too have developed through the projects here in India.

Risk Factors before Taking the DecisionThe biggest risk factor is of course the ability to pay; it is important to see that the customer has the provision to pay when an EPC company undertakes a project. Local factors are the other things to be considered as they can get complicated for every country with each passing year. Issues which might seem trivial like CSR, nurturing the local community and training for local employment are just a few examples which can truly upset the necessary clearances for the project, reveals Bowden. Unionisation or its equivalents are also a major concern in some territories.

Most Challenging ProjectsEvery project presents a different set of challenges, however according to Bowden,

the remote projects are the most challenging ones. “If location is considered a challenge then Madagascar was a huge one with its 100 km of cross country pipeline through virgin hilly terrain as well as the difficult law and order situation at the time. EPL faced a similar challenge in Papua New Guinea,” he adds.

He quips, “For a company stepping out of India, the biggest challenge is going into a developed market like Abu Dhabi because you have to get used to a completely new regime of control and working. There is a vast amount of paperwork compliance to be done and details to be worked on. It is a league ahead of what is being traditionally practiced in India.”

Pursuit of Major Projects in IndiaThere are a number of underlying issues even with the change in the government. Aside from the obvious legislative, environmental and right of way issues that the new government will surely tackle, Bowden observes, “State owned entities are pushing more and more of the cash flow responsibilities into the contract and the EPC contractors have had to become increasingly reliant on facilities from their banks. Simultaneously, an ever growing numbers of guarantees are required for the project.”

The other issue contractors face is that any advance payment from state owned institutions tend to be offered at very high interest rates and at the same time the industry faces many constraints put in place by the banks themselves. So, the companies have to ensure the bank’s support or else the EPC contractor is caught between a rock and a hard place. This is the reality today for the construction industry in India and it is an artificial situation generated by the industry itself.

EPL is currently executing a series of projects in India and overseas. Presently, EPL is completing a USD 400 million project with Jurong Aromatics for their petrochemical plant in Singapore. Another project EPL is working on is a USD 600 million beneficiation plant for Glencore Xtrata in Mauritania in Africa.

Key projects executed by EPL in India and Abroad7 MTPA Beneficiation and Pellet Plant from Essar Steel Minnesota in USA;

12 MTPA Beneficiation Plant, 253 km Slurry Pipeline & Pellet Plant from Essar Steel in India;

2,200 MTPD Ammonia and 3,850 MTPD Urea plant from Matix Fertilizer and Chemicals in India;

Various Process units for a 15 MTPA IOCL Refinery in India;

Five hydrocarbon projects in Abu Dhabi from clients like GASCO, BOROUGE, TAKREER and 1 project from Saudi Aramco in Saudi Arabia;

2 packages for a brownfield Refinery project of BPCL in India;

Laying of 47 km, 12” subsea pipeline from Saudi Arabia to Kuwait for Technip;

EPC of 4 new wellhead platforms for ONGC under its C-Series projects in India;

515 MW Combined Cycle Multi Fuel Power Plant from Essar Power in India;

BOP Package for 2 x 500 MW lignite fired power Projects from Neyvelli Lignite Corporation Ltd. in India;

Komo Airport project under CCC for Exxon Mobil in Papua New Guinea (PNG)

CEW Features


India is yet to Mature as ‘the EPC Market’

Each market is unique and has got its own set of challenges, be it in terms of the geographical location,

mind sets, regulations, policies or people affecting the EPC costs as well as project outcomes, Chanana shares as he starts the conversation. He feels that the Indian EPC market is not yet as matured as some of the other international markets which are witnessing a number of timely project awards and more predictable project outcomes.

From the perspective of an EPC player, cit ing Middle East as the example, he notes, “Cash-rich Middle East region, particularly the GCC, has continued to be a favourite among the global EPC service providers and has become extremely competit ive over the last few years. There are, at least, 6-8 major players l ike ADNOC, Qatar Petroleum, Saudi Aramco and few others in the region, who offer more opportunit ies compared to India where you predominantly f ind only two offshore oi l & gas cl ients.”

Though many international EPC companies have set up their operations in India, lack of new projects in India over the last 18-20 months has been a major setback for the engineering

contracting industry. With the change of government at the centre, Chanana is also hopeful that a number of projects which were put on the back burner might get cleared over the next couple of months, which would generate momentum and optimism for the engineering contracting industry. “Though it may take another 6-8 months for the remaining projects to be cleared, I do not see a shortage of projects over the next 3-5 years in the hydrocarbon space,” he observes on the posit ive note.

Indian market has its own set of challenges for the international players who start very much at the entry level. He elucidates, “International players f ind it much easier to enter the market through offshore projects where the transferabil i ty of international ski l lset is a lot easier as compared to executing onshore projects.” Once the international player is in the country, and has a good track record in offshore oi l & gas space, i t becomes relatively easier to build the onshore EPC

capabil i ty. Leighton entered India on a bandwagon of offshore EPC contracting but gradually leveraged on the posit ive cl ient relationships, and won a number of onshore projects and is now executing those projects as well.

Project owners have now become very demanding in terms of cost control and t ime l ines for implementat ion which the contractors are bound to adhere to contractual ly and ensure t imely commissioning of the projects. With experience, however, contractors are forced to bui ld in cont ingencies, p r e m i u m s a n d c o m m e r c i a l management strategies in their EPC bids to reduce the execut ion r isks for themselves.

Again, contracting models differ across countries depending on whether it is the buyer or the seller market, Chanana adds. He reveals that countries like USA, Australia and Canada still follow the EPCM mode of project execution, while the Middle East and Asia are more open and comfortable with the EPC mode

International engineering contractors share a love-hate relationship with the Indian market. Despite many challenges of policy paralysis, complicated approval processes and consistent project delays, India has continued to be an important destination on radars of global EPC contractors. Having worked in different markets for over two decades, Anil Chanana, COO - Oil & Gas, Leighton India Contractors Pvt Ltd, is now looking after its operations in India. He shares his observation as an international service provider on the ‘not so matured’ Indian market exclusively with readers of CEW.

International players find it much easier to enter the market throughoffshore projects where the transferability of international skillsetis lot easier as compared to executing onshore projects.”

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contracting. He believes that it is not possible to transfer all or major risk to contractors, a thinking that dominates in these two markets, and as a result they (the clients) end up paying premium for embracing EPC lump sum andEPC –LSTK contracts.

Chanana is of the opinion that globally the EPC industry is now learning from the traditional contracts and is experimenting with new hybrid contracting models. For instance in the UK, the project owners are also part of the project execution along with the contractor where contracts enable clients and contractors to share risks and rewards. Many international project owners are now getting into Early Contractor Involvement (ECI) contracts – a hybrid of EPC and EPCM contracts, which differs from the traditional approach of releasing the EPC tender document in the open market. The project owner selects a minimum number of preferred contractors (generally two) on the basis of non-commercial criteria and invites them to work on Front-end Engineering Design (FEED) or Basic Design with the client selected designer to provide value engineering, and understand material quantity risks, conduct contractibility and later submit EPC proposals. “ECI mode of contracting allows the contract to be converted into

CEWFeatures

EPC model at a later stage which works well in favour of the project owners as they do not pay premiums which they would pay otherwise; it also provides confidence to the EPC contractor on understanding risks better,” he explains further.

Successful project execution requires selection of the right model at an early stage for the chemical process industry. He shares his experience, “EPC lump sum fixed price contracts have not worked successfully in the brownfield industrial environment, where the delivery programmes have to be planned around the operating assets to avoid any loss of production which results in unplanned downtimes and standby times during construction and/or installation.” “I feel ECI contracts work very well in the brownfield & greenfield industrial environment while fixed price EPC contracts may work well for certain greenfield projects,” he adds.

EPC contracts are not new to the Indian market but the contracts are stil l based on the age old practices. It is time that these change and the Indian project owners/ operators start adopting international best practices to be globally competent. It is high time that investors do away with the traditional

approach of awarding the project only on the lowest cost criteria to get out of the fallacy of having allocated risks to the contractor, Chanana urges. This fallacy leads to compromises on safety, quality and environmental compliance which can cause commercial and reputational losses to project owners at a later stage. Chanana says that ECI is certainly the next phase of contracting model that India should embrace as this model has been successful in other countries. Though the papers have been presented in various conferences in India, the industry has to stil l walk the talk.

“China, I must say is learning very fast as they are absorbing knowledge from all parts of the world and are reducing the learning curve sharply,” observes Chanana.

Entering any new market requires signif icant investments, in terms of costs and resources, for any international contractor. Although India has seen the entry and presence of international players in the upstream and downstream sectors of the oi l & gas industry, the long gestation periods, policy paralysis and red-tape are major deterrents for the international players to enter the space of infrastructure, power generation and water sectors which offer huge potential for local and industrial EPC players.


CEW Features

E Glass ECR Glass C Glass AR Glass

SiO2 54-55 59-60 55-57 59-60

Al2O3 14-15 14-15 3-5 3-5

CaO 19-20 22-23 8-9 8-9

MgO Traces 2-3 Traces Traces

Na2O 0.6 0.6 13-14 12-13

K2O Traces Traces Traces Traces

B2O3 6-8 Nil 3-5 Nil

F2 0.4 Nil Nil Nil

Fe2O3 0.3 0.3 0.3 0.3

ZrO2 Nil Nil Nil 16-18

Advantages of Using FRPCorrosion resistance is a big challenge for the chemical industry. Fibreglass Reinforced Plastics (FRP) materials are being considered as a high strength and corrosion resistant for components and materials. The article highlights numerous applications of this innovative product across various industries and explains about FRP’s benefits in detail.

Forward Focus

R Srinivasan Technical Committee

NACE International Gateway India Section

C V Manian, PhD Technical Committee


Samir Degan, PhDTechnical Committee


[email protected]

Fibreglass Reinforced Plastics are versatile materials used in varied applications like armoured vehicles,

missiles, boats, cable-trays, water and sewage transportation, wind energy, chemical storage vessels and many other applications. The prime consideration for all these applications is the corrosion resistance properties, light weight and high strength of the material.

What is FRP or GRP? The term FRP or GRP refers to plastic or polymers that have been reinforced with glass fibres. Although most of the thermoplastics are also reinforced with glass fibres (FRTP), this article deals with thermoset resins like unsaturated polyester resins, epoxy, furan and phenolics.

Reinforcement Materials: Various types of reinforcement materials like asbestos, fibres made out of polyester, carbon and glass are in use, but glass fibre and its hybrid form constitute 90 per cent of the composite products. Glass fibre for reinforcements are

commonly available in E, ECR and C glass, where E stands for electrical, ECR is for Electrical and Chemical and C Glass type is chemical resistant. From the authorsÊ experience, the details of types of glass are listed in Table 1 below.

Thermoset ResinsAlmost 80-90 per cent of FRP components are made from unsaturated polyester resins, with differing resin chemistry based on orthophthalic, isophthalic, vinylester and bisphenol compounds to meet end user applications followed by epoxy resins which are primarily used for pipes and vessels.

Strength Characteristics of FRPThe maximum strength of glass fibre reinforcement is achieved when glass fibre is under tension. There are three basic rules to consider the structural strength properties of reinforced thermoset plastic materials are:• The strength is directly proportional

to the glass content. The higher the glass content the higher the strength.

Table 1: Details on different types of glass

July 2014 • 51Chemical Engineering World

CEWFeatures

Process Glass Resin Filler

Filament winding 60 - 70 30 - 40 NA

Pultrusion process 70 - 75 25 - 30 NA

Hand lay up / Spray up 33 - 40 67 - 60 NA

Press moulding 30 30 40

Transparent roofing sheet 30 70 NA

Hand lay up 40 60 NA

Properties FRP Polyester piping GRP Epoxy Piping

Resin Polyester/vinylester Epoxy

Temperature Up to 65-90oC Up to 150oC

Pressure atm to 40 barg / fu l l vacuum

atm to 200 barg/ful l vacuum

Service Moderately Corrosive f luids

Highly Corrosive f luids

• The longer or more continuous the glass filaments, the higher are the strength properties.

• The physical properties, more specifically the tensile strength are influenced by the direction or orientation of the glass fibre.

From the authorsÊ experience, an indicative ratio of glass to resin for each of the processes is given in Table 2.

Corrosion ResistanceCorrosion resistance for FRP equipment is a function of both the resin content and the specific resin used in the laminate. Thus when building the laminate, the surface nearest the corrosive medium is made by a layer that is 90 per cent resin and 10 per cent glass (the surface-veil layer). The surface-veil layer is invariably made of C glass, which is a chemical resistant glass.

The prime consideration while dealing with corrosion resistant properties for FRP components is the appropriate selection of the resin system. A qualified fabricator or resin manufacturer will provide this information to the user. Usually test coupons are also made to justify these recommendations.

The following facts should be of use to the end user for what to expect from FRP with respect to corrosion properties when compared to steel. Neither the steel manufacturers nor fabricators provide any type of corrosion warranty. The reasons are three fold:• Not all of the materials in a gas or liquid stream are known

beforehand. If trace solvents or chlorides are present, but have not previously been identified, this could play havoc with an otherwise satisfactory installation.

• A process change or new material or just temperature increase will change the suitability of a given resin for specific application.

• Selection of corrosion resistant materials is proprietary and still somewhat of an art.

Weight AdvantageThe distinct advantage of FRP is its low weight to strength ratio compared to steel (1:7) and aluminium (1:5). Light weight properties are important when considering the cost and ease of installation, especially for pipes, tanks, scrubbers, ducts, etc.

Design Considerations • The user must define the process parameters that the

FRP equipment will be handling, ie, liquid, gas, pressure, temperature, solids if any etc.

• The user must work closely with the equipment supplier to determine the resin system that would be suitable. Any qualified fabricator/resin manufacturer normally would supply this data.

• Based on the data, the basic objective needs to be prioritised; strength, corrosion resistance, surface finish, etc.

• The appropriate process for fabrication is then selected. eg, (i) sewage handling FRP pipes operate in a highly corrosive environment. Hence, the inside portion of the pipe has to be made with a veil mat and a resin that is corrosion resistant, else the pipe will fail; (i i) If large quantities of electrical switch boxes, or automobile parts are required with a good finish and fire retardant properties, appropriate manufacturing process needs to be chosen.

• Appropriate codes should be adopted for fabrication, installation and testing. Various ASTM, BS, DIN, IS standards are available in the literature and these should be consulted. (See Typical FRP/GRP service conditions in table 3)

Precautions • Designs should be based on realistic known properties of

the resin and not based on the properties of steel and a quote solicited from a fabricator from such drawings.

• When data available is insufficient from the resin manufacturer or fabricators about the desired parameters of operation, then the fabricator should be requested to provide test coupons for evaluation for the desired parameters.

• Selection of a good FRP fabricator is essential for success; experience, quality and design back up must be reviewed.

• Once the designs are accepted, physical checks and dimensional tolerances of the component is very important.

• Where pressure and vacuum are a process must, the same should be tested at the fabricators end prior to instal lation.

ConclusionsFRP materials provide the advantage of substantial weight reduction together with excellent corrosion resistance in the fabrication of specialised equipment. In order to get the maximum benefit out of FRP equipment, it is essential that the equipment be designed, fabricated, installed and operated as per accepted operating procedures to provide satisfactory service life. It is advised that in critical equipment, test coupon evaluations are carried out to ensure that the desired end objectives can be achieved without compromising quality.

Table 3: Typical FRP/GRP service conditions (Ref: www.nace-jubail.or/meetings/imiantit.pdf)Table 2: Indicative ratio of glass to resin


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Avoiding Glitches in Mega Scale Projects

An E&Y survey has concluded that about 42 per cent of large infrastructure projects are running behind schedule. The new government has considered infrastructure as one of its area of focus. But there are many glitches - internal and external - responsible for time and cost overruns in mega scale projects. G K Pillai, Managing Director & Chief Executive Offi cer, Walchandnagar Industries Limited, highlights the internal reasons that affect a project’s performance.

I ndia stands at the threshold of a promising decade of rapid economic growth. A stable government at the

centre, recovering global economy and a buoyant market, are the early signs which augur well for the Indian economy. Strong infrastructure and industry are critical for IndiaÊs growth, which in turn is creating multitude of opportunities in the fields of engineering, capital goods and construction. The thrust of the government is on infrastructure and it is estimated by the Planning commission that ` 45 lakh crores would be spent during the 12th Plan period to sustain and support targeted growth.

This large and fast build-up of public, industrial and plant infrastructure requires robust EPC services supplemented by strong project management skills. Given the huge investment, successful delivery of infrastructural and industrial projects would be very crucial. Unfortunately, the project developers and contractors are stil l struggling to deliver large projects within budget and deadlines. As per recent Ernest & Young report around 42 per cent of large infrastructure projects currently being executed are running behind schedule.

There are a host of external and internal reasons for time and cost overruns in mega scale projects. This article deliberates only the major internal reasons, which affect project performance. These reasons are also under the influence and control of an organisation executing the project. An

organisation can prevent recurrences of these issues in its current and upcoming projects, by adopting some of the time- tested practices used by some of the best project organisations.

A typical project goes through 5 major stages in its life cycle:

1. Pre-award stage2. Pre-planning stage3. Project planning and design4. Project execution and monitoring5. Project closure and handover

Pre-award StageThe bidding process of EPC projects has become very aggressive due to entry of several cost competitive EPC

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players. However, it is essential to make a realistic bid taking into account all cost and safeguards, in order to meet project requirements. A detailed pre-bid discussion comprising of all stakeholders (Marketing, Project, Engineering, Procurement, Manufacturing, Contract, Legal & Finance) should be done, to ensure completeness of bid and to get a proper understanding of all risks, before submitting the bid document. Bid partnership with vendors of critical equipment and services should be considered, in order to get a price and delivery commitment beforehand. In mega projects a thorough due diligence of the client, the project and country risk analysis for export project is also essential.

Pre-award Stage

Project closure and

handover

Pre-planning Stage

Project planning and

design

Project execution and

monitoring

Major

Stages in

ProjectÊs Life

Cycle

December 2013 • 117Chemical Engineering World

Final Ad template amol.indd 117 24-01-2014 10:39:53


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Pre-planning Stage Numerous international studies have found that Âwhen companies increased their predevelopment emphasis, they increased the predictability of successful project completion by a 2-to-1 ratio.Ê Understanding of Client Expectations:

The most important element of any project plan is ensuring that the projectÊs objectives and deliverables are consistent with clientÊs expectations and contractual obligations. Detailed face to face meeting with the client and project consultant should be held at the beginning, in order to be aligned with all client expectations.

Establish Project Organisation: Establishment of project organisation ensures clearly defined roles and responsibilities for all members of the team who are committed to the project effort and avoids ambiguity during project execution. Apart from that, appointment of an experienced and skilled project manager, who utilises the resources efficiently and unleashes the team to achieve project objectives, also plays a major role in avoiding time and cost overruns in a project lifecycle. A project company should invest in structured and improved training programmes as a long term solution for building professional capabilities and enhancing skill sets of its project managers.

Detailed Project Estimation: Developing a detailed realistic budget for the entire project at the beginning, avoids a lot of problems later. A careful bottomup cost estimate for procured items as well as contracted services needs to be undertaken. Elements like transportation,

taxation, exchange fluctuation, environmental safeguards, project financing costs and site expenses for the entire duration of the project should also be considered in the budget.

Project Planning and Design Detailed Planning: It is important to map all

the key activities and interdependencies of a project (WBS) and create a detailed baseline schedule which is accepted by the customer and also agreed upon by all the stakeholders and agencies involved in the project. This approved baseline acts as a guidepost throughout the duration of the project execution and is also essential when consequences of changes have to be evaluated.

Significant challenge for project management is co-ordination between engineering, procurement and construction. To manage this, the project manager should have full understanding of the required workflow, priorities and processes and should align this with schedule requirements.

Engineering should be done with focus on quality and speed deliverables. All engineering should be done with maker checker concept, to avoid hidden defects in engineering at a later stage. Potential vendors should be selected carefully by the procurement department, after involving engineering and project manager. Preference should be given to quality vendors with good track record, who can adhere to a delivery schedule. A strict follow up with the vendor is essential and order placement should also be done as per the defined schedule.

It is also important to award the construction contract as reasonably early as possible, so that the contractor can plan his work and mobilise all the site resources efficiently. More often than not, the time required for this is underestimated by the companies.

Detailed Risk Management for Reduction

of Uncertainties: Risk management should be made an integral and essential tool for executing a project successfully within the contractual parameters. It is necessary to have an early trigger mechanism to identify the risks and challenges that might creep in while executing projects.

Project Execution and Monitoring Regular Monitoring of Cash Flow and

Time Schedule: It is important to create a detailed cash inflow and outflow for the entire duration of the project. Closer cash flow monitoring ensures that the project is adequately funded throughout its duration, thereby avoiding any disruption in project execution. It is important that apart from the time schedule, the project managers monitor the project budget & project cash flow daily.

Co-ordination and Communications amongst Various Agencies: Regular cross-functional reviews should be held at pre-defined frequencies to maintain communication and resolve all issues. All stakeholders should be well informed about project health at all stages of the project. Cost overruns are fuelled by frequent changes in design and weak procurement planning which can be mitigated by adequate coaching and co-ordination by project managers.

Project Closure and HandoverAt the project closure all the necessary documentation should be completed and handed over to the client. All pending issues and contractual obligations should be thoroughly closed with client and consultant. A lot of learning occurs during a project that, which if formally captured, will significantly improve project management in succeeding projects. Teams that take the time to formally close-out the project are substantially more efficient in the next project.44 MW Cogeneration plant at Warana, Maharashtra built on EPC basis by Walchandnagar Industries

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Insurance of EPC Projects in Downstream Chemical Industry - Indian Saga

The objective of this article is to sensitise the principal or the owner and EPC contractor on the signifi cant challenges faced when transferring risk to an insurer under a construction project. Each project is unique and a lot of thought needs to be put in before the model of contracting is selected and after the same is done to continuously monitor the risk transfer mechanism to see whether there is any gap in the cover and critical areas that need to be addressed. To use the services of an experienced insurance broker is of utmost importance as he can guide the parties towards understanding the risk, designing the right cover, monitoring and reviewing the same. Azad Kumar, Vice President, Aon Global Insurance Brokers Pvt Ltd, writes.

In the world of contracting parlance, risk in an EPC project is primarily handled in two ways. The global model of risk

management is for owners to retain the maximum on their books and transfer to a third party insurer what they wish to as per their risk retaining appetite. This may also involve a captive who brings in tax efficiency and a bulk of premium kept with the ownerÊs own captive insurer. Even in the absence of captive, the risk is transferred by the owners to their insurer through a programme often referred to as the Owner Controlled Insurance Programme (OCIP).

The other model followed mostly in India works on the basis of pushing back the responsibility of insurance to a contractor via the EPC contract. This is often referred to as the Contractor Controlled Insurance programme (CCIP).

process. In this contracting world of super competition each ÂpaisaÊ counts and the job of the CFO or project team is to reduce the premium to the minimum after agreeing on the basic minimum insurance cover to comply with the contract conditions.

This has been working quite well in India and if we conduct a survey of the CFOs or the project teams of the contracting company, they would vouch that they are generally able to keep the insurance costs in control with the Indian insurance market going through a soft phase for several years now. Further, there is an added advantage of choosing the minimum deductible or retention available in the Indian insurance market and also being able to manage the show if there is any unfortunate incident. So, where is the problem? None whatsoever they would say!

Is it so simple? Apparently not! This model brings its own hardships which may be the following: Difficulty in complying with ownerÊs

lenderÊs requirements often brought in by their advisors (read lenderÊs insurance advisor). The lenderÊs advisor requires certain covers to be built in often after the insurance contracts are already negotiated with the EPC contractorÊs insurer. This brings in its own difficulty resulting from insurer reluctance to enhance cover and often requesting for additional premium plus not agreeing

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to provide certain critical covers requested by the lenderÊs advisors. This directly poses a problem for the owner in terms of loan disbursement where debt is involved with lenderÊs requesting for compliance. Where International funding is involved of ADB or IFC, the problem becomes grave and any non-compliance of LIA poses serious problems.

There is another critical cover for Delay in Start-up (DSU)/ Advanced Loss of Profits (ALOP) following insured losses which covers the anticipated profits plus debt servicing costs. This cover is difficult to be obtained under the CCIP model as this is only provided to owners. Often lenders insist that the project should have this cover without which funding may become an issue.

Issues when the individual package of the contractor is complete and await integral testing, thereby increasing the premium spends by the contractor for a long period of time till handover certificate is obtained. They would need to keep extending the insurance for their package until the owner provides them a handover certificate. This may also present problems in terms of gaps in cover (see figure 1). Figure 1 talks about compliance with testing and commissioning clause under the operational policy of owners. It becomes easier under an OCIP model when the entire plant insurance seamlessly moves

Scenario 1 - CCIP

We are more used to CCIP model in India where contractors, who directly contract for a package with the owner, handles the insurance for their contract themselves. They then approach their insurer and transfer the risk of the project to the insurer at a negotiated premium and agreed terms and conditions. The focus for a contractor is to transfer the maximum risk at minimum cost and bring in better efficiency in the


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into an operational phase after the units are tested for 100 per cent capacity for 72 hours. However, if multiple contractors are involved and each has a different handover dates, it poses potential problems for owners especially if there is an integral testing takes place.

Difficulty in claims settlement in view of incident affecting works of various contractors by that one incident. Multiple insurers at site may bring in subrogation against other contractors by their insurer and lead to delay in claim settlement, and as a result money gets stuck.

Issues with claims being rejected by the insurer for lack of certain coverage under his package. Claim denied by their insurer does not absolve the contractor from his liabilities towards the principal. This may lead to protracted negotiations and dispute in getting the reimbursement from the owner

Construction to Operation: How Seamless is the Transition? Testing & Commissioning Clause

Scenario 2: OCIP

and pricing, contractors are asked to bid without including the cost of insurance in their bid. The owner may run the claim management under the insurance contract or ask the contractor to do so, generally if there is a single contractor. The deductible is still on the account of the contractor like in the CCIP model mentioned above. However, the scourge of the contractors working in this model is that several times, the deductible forced on them by the owners are very high. Is there a solution to this problem of high deductible or retention? Yes there is, and several contracting companies who have a full-fledged risk management department or who retain the services of an insurance broker, are able to point out to the owner during bid process that they would be more comfortable if the deductible may be lowered. This often assists the owners in understanding the issue and they are able to bring in more realistic deductible levels which bring in comfort to both owners and contractors⁄ Well most of the time!

Case 1: Model CCIPClient advocated CCIP model and asked the various contractors to arrange insurance covers on their behalf. Each contractor followed this and bought insurances for their packages from various insurers in India. Result was that there were more than 20 insurance policies for the same project covering various packages with multiple end dates not coinciding with the ultimate end date when plant was to be commissioned.

Result mayhem with multiple coverages, multiple insurers, multiple wording and multiple end dates. This brought about the issue of packages being extended till the project was to be completed even though some of the contractors had completed

This is the most preferred mode of insurance buying practiced in international market. Some of the clients in India of late are also following the OCIP model. This brings in uniformity of wording, coverage and can cover the entire plant by a single insurance contract. The owner has one start date and end date in their insurance contract and there is certainty in their mind of what they are buying as it covers the entire project and all the contracts or packages awarded by them to various contractors.

How does OCIP work? The owner will advise the contractors that they shall be responsible for the major insurance and they provide a copy of their insurance contract to the contractor after the contract is awarded. During the process of contract negotiation

their work and were awaiting handover certificates. Where a particular contractor had completed their job and were allowed to go off, the owner had the task of arranging for an operational or silent risk cover for that package. Needless to say, this ran a risk of some packages going without insurance as it did not strike the owner that since works by a contractor is complete; there is no cover under the construction policy.

Lo and behold, there was an incident of theft reported for one of the completed packages and it was discovered there is no cover available as the owner forgot to insure this part of the completed contract works under an operational insurance.

Case 2: Evacuation Infrastructure Not ReadyThen there is the issue of evacuation of finished products and if the related infrastructure like pipeline is not ready by the time the plant is ready, then it poses its own challenges to the owners or EPC contractor. It may become difficult to test the plant for 72 hours as per designed capacity and hence difficult to move it under the operational insurance. Even if it is moved into operational cover at lower tested capacity any ramp up to higher designed capacity is not insured under the operational policy. The only solution available is for the construction policy to be extended to cover ramp up and this may need to be done until the infrastructure is ready to evacuate.

ConclusionTo conclude, the preferred mode of risk transfer is for ownerÊs to take the responsibility of the major insurances, and in our opinion this is the best way to handle the insurance as this provides wider coverage, certainty in cover, premium savings and better management of risk. However, when the owner pushes the responsibility of insurance to the EPC contractor under the CCIP model, the contractor needs to ensure that they meet up the contractual requirements. And under this model it would be beneficial for the owner to be aware of when the contractorÊs policies are getting over so that they can ensure that operational cover is in place and where required request the EPC contractor to extend it till plant stability is achieved.


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EPC Model in India: Bottlenecks & Benefits

Projects, today, are getting increasingly complex; bottlenecks caused by time overrun or lack of fi nance is a common picture. Ajay Hans, Managing Director, Petron Engineering Construction Ltd, is of the opinion that adopting the EPC model for projects can be a good solution to tackling the issues. He highlights its many advantages in this article.

Every personnel in the EPC industry would agree that a project which is completed in the given time and

cost are worth a mention. Most of the major projects in the country are being marred by delays either caused due to lack of finance or time overrun. The ones most exposed to these delays are the stakeholders. A majority of the delays happen due to the clashes that occur between the many agencies involved in the project; these agencies operate in different direction to suit their economies and schedule.

The project management is extremely crucial, and if mismanaged can lead to total chaos and confusion among agencies.

A good way of dealing with the projects is to execute them the EPC way. Traditionally, when the contracts are executed, engineering is done by one party; procurement is done by either the client or a different party and the construction is executed by the party that specialises in construction.

EPC is definitely the better way of executing the projects than the traditional one. The number of EPC projects in India is growing but many owners or developers start with the EPC philosophy in mind but end up executing it in the traditional manner. One big reason for this is the cost aspect and no clear tax structure for EPC projects.

EPC has emerged as a preferred form of contracting for the cl ients along with the (Private-public Partnership) PPP models. A major challenge the project team has to face is to execute projects within the budgets and the stipulated t imeframe. It involves a number of factors internal and external which wil l have an impact on the project. While the polit ical environment, tax laws, present labour scarcity, are a part of the external environment, cost enhancement gets the biggest impetus through the role of engineering in the EPC projects. Furthermore, each state has a different tax structure and laws relating to taxation. If these taxes were to be in a uniform structure, i t would take care of many l ikely complications for the contractor.

Projects are getting more and more complex now. Handling a project the EPC way will offer the following advantages to the client:

Minimum Management: Once the client awards the EPC job to the contractor, he does not have to worry about the co-ordination that has to be done with the engineering, procurement and construction teams. The client needs to only formulate the billing schedule for

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ensuring that fair payment is made to the contractor and the contractor gets an ample opportunity to prove his mettle in the project.� Choice of Executing Multiple Projects Simultaneously: Since EPC projects are the big ticket ones, the client has the choice of starting multiple projects together thus reducing the execution cycle time. While a client will keep a macro view on the day-to-day monitoring of the projects, the respective contractors would need to keep a micro view of the day-to-day activities of the project. � Efficiency in the Project: In terms of Engineering, Procurement, Project Management, and Construction etc the contractor takes the lead and these projects are controlled in a much better manner as the contractor has many controls of interfacing. Complex projects if executed in the regular manner are most likely to be completed with a minimum delay and cost increase. � Specialised Manpower and Machinery: Availability of skilled manpower is a biggest challenge faced by the construction industry. With the central government introducing schemes like Mahatma Gandhi

Though the market for EPC contracts still has to go a long way, it canbe said with conviction that an increasing number of clients as well ascorporations will move towards the EPC model for capturing the various advantages it has to offer.


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National Rural Employment Guarantee Act for the benefit of rural people, the exodus of unskilled and semiskilled personnel in cities and toward project sites has minimised as the labour is assured of employability in their residential place itself. This has caused a huge demand for the existing skilled manpower.

Not understanding the legal environment in terms of labour laws and their applicability can become a big issue for the client which is then passed on to the EPC contractor. In an EPC mode, the risk of adhering to the rules and regulations is completely passed on to the contractor.

Further, complex projects require a lot of specialised equipment and machinery. The job may involve manufacturing or fabricating heavy equipment like heaters or cracker units or installation at heights that require high capacity cranes etc.

Delay in installation can lead to heavy charges, the risk of which is passed on to the contractor.� Currency Fluctuations or Market Fluctuations: During the tenure of the EPC contracts, all the client has to worry about is the financing required for the signed contract value and nothing else, that is if there are no modifications suggested by the client. If there is any import of material required, the client has the option of transferring the risk on to the contractorÊs part without him having to worry about the fluctuations.

Making the environment a uniform platform by adopting modern technology will also usher in the foreign players in the EPC market, especially the ones who are keen to contribute to the growth story. The amount of risk involved in the project can be transferred to the contractor through a turnkey contract or the client can share a part of the risk through package models. Thus, in a turnkey contract, the responsibility of completion of a project from the concept (engineering) to its commissioning rests with the contractor.

Though the market for EPC contracts stil l has to go a long way, it can be said with conviction that an increasing number of clients as well as corporations will move towards the EPC model for capturing the various advantages it has to offer.

Over the last two decades, a number of indigenous EPC contractors have been developed who have created a niche for themselves and possess the sector-based skill; this needs to be developed and explored in the Indian as well as the Global market.

Growth of the Indian market will depend on the timely delivery of projects under budgeted funds, and this can happen only through EPC model of executing projects.


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Risk Quantification with Extended HAZOP Study

The HAZOP study has been applied successfully to the systematic safety assessment of chemical plants and industrial processes for decades. However, automated production processes and modern materials now give rise to new demands concerning risk management. This article explains how conventional HAZOP study can be made fit for the future by adding modern risk-assessment methods.

F or over 40 years, companies in the chemical industry have used the HAZOP study to make

production processes safer. The method is aimed at identifying potential r isks in operations and processes, analysing their causes and effects, and developing suitable corrective actions to prevent incidents and increase plant safety. The HAZOP (Hazard and Operability) method was developed in the early 1970s by engineers at the UK chemical company Imperial Chemical Industries (ICI) in response to the rapidly growing process industry and the associated rise in serious accidents. The Seveso disaster of 1976, where an unidentified amount of the highly toxic dioxin TCDD was released at a chemical company north of Milan, was one of the most severe chemical incidents in Europe. In the year following the disaster, ICI and the Chemical Industries Association published the HAZOP method under the eponymous title „A Guide to Hazard and Operability Studies‰. The European Seveso I Directive came into force in 1982. This directive introduced the requirement

of a systematic safety assessment for plants of a certain hazard potential and/or substance inventory. EC Directive 96/82/EC replaced the Seveso I Directive in 1997 and a further revision the „Seveso III Directive‰, also referred to as the Major Accident Directive will come into force in 2015.

Discussion of the Qual i f icat ion of Safety Risks The HAZOP study starts from the assumption that major accidents are caused by unintended deviations of safety-relevant operating factors such as temperature, pressure or fi l l ing levels. Where and why these deviations occur, which consequences can be derived therefrom and which preventive actions have to be taken to respond to potential hazards, are all issues that are addressed in a facilitated expert discussion. Here, a multi-disciplinary team of internal and external experts addresses each individual component of a production process, its target function and possible deviations. In a direct dialogue facilitated by an experienced study leader, safety and process engineers, technicians

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and designers systematically assess all plant components and process steps for potential risks.

For this purpose, the method assigns a specif ied function to every process step that is assessed and uses a set of guide words (eg, ÂnoÊ, Â lessÊ, ÂmoreÊ, Âearl ierÊ, Â laterÊ etc) to systematically check the relevant parameters of this target function (eg, temperature, pressure etc.) for result ing deviations. Special l ists are available that can be adjusted to the specif ic terms of reference and assist with the selection of suitable parameters and guide words. The guide-word method thus supports the experts in their qualif ied and comprehensive examination of the subject matter and in ensuring

The HAZOP (Hazard and Operability) method was developed in the early 1970s by engineers at the UK chemical company Imperial Chemical Industries (ICI).


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Approaches to Risk Assessment

Qualitative Risk Assessment Quantitative Risk Assessment Probabilistic Risk Assessment

Decisions based on- empirical evidence- technical expertise- intuition

In other words,risk assessment is not exact, but influenced by personal experience; accepted as „common sense‰

Decisions based on- analytical models- defined parameters- comparison with limit values

In other words,risk assessment is exact but may be contested, as the baseline values are often not generally accepted or cannot be specifically defined

Decisions based on- stochastic models- average values- distribution function of results

In other words,risk assessment is very realistic but requires comprehensive data records and highly complex mathematical models

Example: Uncontrolled release of a certain quantity of a dangerous substance

Qualitative Assessment: The uncontrolled release is/is not to be classified as a dangerous event.

Quantitative Assessment: Starting from the released amount and the assumption of a Gaussian distribution in the dispersion model, the assessment delivers a concentration x or dose y at the reception point in question. A comparison with the limit value shows that the result is / is not to be classified as hazardous.

Probabilistic Assessment: Starting from a collective of possible sources of emission, a probability distribution of the dispersion conditions (e.g. with the help of long-term weather statistics etc.), the assessment delivers a probability distribution of concentration x or dose y at the reception point in question.

a constructive discussion. Once all possible risks have been identif ied, the team goes on to assess the causes and possible consequences of a deviation and subsequently identif ies possible preventive and/or corrective actions. The recorded brainstorming and its results are ful ly documented in a report.

T e c h n o l o g i c a l P r o g r e s s M a k e s New Demands The HAZOP method has reliably identified and minimised risks for decades. It has contributed considerably to improving the operation of technical facilit ies and continuously increasing the safety level of production processes. By systematically harnessing the expertise and experience of the discussion participants, the method enables customised safety concepts to be developed and adjusted effectively to specific needs. At the same time, as a risk management tool, the HAZOP study can be applied almost universally to each system and throughout the entire life cycle of a plant or process.

However, the conventional HAZOP study also has its limits. Against the backdrop of breath-taking technological advancements in the chemical industry, plant owners and

experts increasingly face new, complex and rapidly changing problems. Today, fully automated and computerised process control systems are used to control, regulate and ensure the safety of plants in the process industry. New materials and operating fluids are developed and used in increasingly short cycles. This trend brings in its wake new risks that are difficult to assess and that require immediate anticipation and response. Empirical information about operations in practice

are needed to adequately support the qualitative approach of the conventional HAZOP study. Modern Risk Management Complements Conventional ApproachAccording to the experts from TÜV SÜD Chemie Service, one feasible solution is to complement the qualitative HAZOP study by introducing quantitative and probabilistic modern risk management methods. Defined parameters and

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analytical models additionally permit quantitative forecasts of safety-relevant consequences.

Identification of the risk rating, which can be determined from the ratio of the failure probability of a system and plant to its potential consequences, is fundamental for systematic risk quantification. The probability of failure of a plant is difficult to predict. However, findings on the failure frequency of individual components can be related to each other to arrive at initial estimates. The comparison of these estimates with empirical statistics then makes it possible to calculate the parameters of probability of occurrence and consequences of damage. Embedded in a company-specific risk matrix, the risk rating provides information as to whether, and to what extent, preventive and corrective actions must be initiated. It also assists with evaluating the effectiveness of various actions so that the best possible solution can be chosen.

Even the conventional HAZOP study requires precise planning, implementation and follow-up. Probabilistic and quantitative methods also often prove complex and work-intensive. The method can be simplified by using general statistics for the probability of occurrence of human, mechanical and electrical errors. These empirical data from risk research ensure efficient risk traceability and quantification.

Expertise for Implementation in Compliance with Legal RequirementsThe HAZOP study provides companies with an effective tool for the assessment of technical risks. At the same time, extended systematic risk assessment assists company managers in maintaining their plants and systems in compliance with the legal requirements and the state of the art and in keeping liability risks to a minimum. Planning, operation and maintenance in the chemical industry must take into account the relevant directives and regulatory acts (eg, the Federal Air Pollution Control Act, the Occupational Safety and Product Safety Acts and the Hazardous Substances and Major Accidents Regulation) and verify that it is in compliance with these regulations. TÜV SÜD Chemie Service supports company managers in quickly implementing all legal requirements and reaching legal compliance. Independent team managers or study leaders, secretaries and technical consultants pool their expertise and experience to ensure efficient realisation of systematic safety assessments in accordance with the HAZOP method. Working with the internal experts in the companies, the study team thus can identify, evaluate and document process-related weaknesses.

AuthorÊs Details Rainer Semmler

(A not i f ied expert under Art . 29a BImSchG) TÜV SÜD Chemie Service GmbH

Email: [email protected]

28-31 January 2015, Mumbai, India

203, Trade Corner, Sakinaka, Mumbai – 400 072. E-mail: [email protected]: +91-22-28503932/28596350/28592325, Fax: +91-22-28504524 URL: www.chemproindia.com

DETAILED ENGINEERING IN ALL DISCIPLINES THIRD PARTY INSPECTIONS

C H E M P R O INSPECTIONS PVT.LTD.203, Trade Corner, Sakinaka, Mumbai – 400 072

C H E M P R O EXPERTISE PVT.LTD.203, Trade Corner, Sakinaka, Mumbai – 400 072

WORLD CLASS ENGINEERING SERVICES TO INDUSTRIES WORLDWIDE - SINCE 1977

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“ EXCELLENCE IN ENGINEERING CONSULTANCY SERVICES ” “ COMMENDATION CERTIFICATE ” FOR EFFORTS & COMMITMENT TO QUALITY

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Market InsightsCEW


Boosting Bottom Line with Cloud Solutions

C loud computing, big data management, analyt ics and several such innovat ive

solut ions have changed business dynamics for var ious industr ies, however, as far as chemical industry is concerned, the adopt ion of c loud computing solut ions has been slower. „Compared to the IT industry, the growth and the adopt ion of the cloud solut ions has been slower,‰ says Abhi j i t Potnis, Director Technology Solut ions - India and SAARC, EMC.

As the industry is realising that these solutions not only help them streamline their operations, but also are very crucial in improving their bottom l ine, the trend is changing. Potnis explains that chemical companies need integrated content value chains because managing information eff iciently enables safe, low-cost operations, streamlined comp l i ance , and va lue -added products and services that boost the bottom l ine.

„Increasingly, Indian chemical industry is now open to using the customised solutions like ÂDocumentumÊ whose breadth of experience and market leadership in enterprise content management are second to none,‰ he adds further.

Elucidating how chemical companies work, Potnis says, „They use analytics to identify valuable opportunit ies. In such a scenario, big data is often talked about for i ts promise - to

address a mult i tude of business problems and create a mult i tude of business opportunit ies.‰

The Adoption is Gaining the Pace But there are sti l l a large number of chemical companies that are reluctant to migrate al l of their data, application and system to cloud as the data and application are very Âsensit iveÊ in nature.

Potnis also agrees that despite the strong embrace of the cloud in many industries across the globe, most of the companies have remained somewhat conservative about what systems and data they put in public clouds, which are the data centres of third parties that host many companiesÊ applications and IT infrastructure.

According to him, „Majority of companies would consider putting their core applications in private clouds; only a minority today would put core applications in public clouds. The reason is fear of data security and privacy. The challenge for companies is to reduce the fear that most large companies have about putting mission-critical information systems and sensitive data in public clouds.‰

Large companies now want to shift many applications to the cloud, and they

realise that i f they are to get the greatest cost savings, i t wil l have to be to hybrid cloud, Potnis adds. He is of the opinion that in a situation when manufacturing is becoming 2.0, cloud computing has gained mileage. The industry is now moving towards being cloud friendly and cloud active post adopting Cloud Services.

So, wil l enhancing the internet connectivity change the trend? „Yes,‰ Potnis predicts. „Cloud services have reached the maturity phase in major economics of the world, and it would be safe to say that Cloud Service providers are now shift ing their focus to emerging economies l ike India for future growth. With the popularity of big data and cloud, along with the plans of enhancing the internet connectivity across the Indian subcontinent, as proposed in the Union Budget, I feel cloud services are going to f ind new customers in small scale technology enterprises as well,‰ he assures.

EMCÊs Enterprise Storage Division recently launched new VMAX and VPLEX features, with a powerful new RecoverPoint 4.0 Storage. Apart from this, the company has many solutions for consumers such as EMC AppSync, EMC Data Domain Family, EMC Data Protection Suite, EMC Disk Library

Chemical industry’s need to manage ‘big data’ in their day-to-day operations has necessitated the use of innovative cloud solutions in recent few years. Despite the fact, the industry has not adopted these solutions in proportion with the need and has been slow to initiate the much-needed change, says Abhijit Potnis, Director Technology Solutions - India and SAARC, EMC

Cloud services have reached the maturity phase in major economicsof the world, and it would be safe to say that cloud service providersare now shifting their focus to emerging economies like India forfuture growth.

Market InsightsCEW


for mainframe, EMC ProtectPoint, EMC RecoverPoint, EMC VPLEX.

Potnis specif ies, „As far as the statist ics are concerned there is no concrete f igure that can be quoted but, by 2020, analysts estimate that we wil l have 300 t imes more data than we do today. So, one can imagine the cloud computing marketÊs growth by the growth in the data supporting the industry.‰

Cyber Security: A Critical IssuePotnis also shares his views on Âcyber securityÊ and informs that i t has been a troublesome issue for the industry for i t may possess a serious threat to an organisation in case the data is hacked or tempered with. „Our cyber security solution l ike RSA Archer leads the market in enterprise governance, r isk, and compliance (GRC) as chosen by one in two of the Fortune 100,‰ he claims.

RSA Archer allows organisations to build a collaborative GRC programme to manage enterprise risks, demonstrate compliance, automate business processes, and gain visibility into risk and controls. Since the products are built on the flexible RSA Archer GRC Platform, business users can tailor them, create supporting applications, and integrate with multiple data sources without touching a single line of code.

The RSA Archer GRC Community and Exchange provide an active user community and online exchange of applications, content, services and integrations.

EMCÊs Products and Services that can Help Chemical Industry Streamline their Operations?EMC Consult ing has the expertise, methodologies and frameworks to support i ts cl ients along the entire energy value chain.

Potnis reveals, „In oi l and gas as well as uti l i t ies, we have experienced consultants available regardless of your location, including an expanded energy consult ing presence in the Middle East, Russia, and surrounding countries. We have expertise in a wide variety of technologies for creating and deploying energy-specif ic solutions and applications that address your restructuring, deregulation, and compliance challenges.‰

EMC Consult ing leverages its industry transformation expertise to rebuild upstream applications for the cloud, support remote access and collaboration for high-end 3D visualisation applications, and to enable the creation of regional and central ised data centres and to ensure compliance with changing regulations.

- Harshal Y Desai

Truly a Product Finder for innovative

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in more than 100 sections of Chemical

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that disseminates information on all

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CEW/CPF Spotlight

JASUBHAI MEDIA PVT. LTD.rd

Taj Bldg., 3 Floor, 210, Dr. D. N. Road, Fort, Mumbai-400 001.

Tel.: 91-22-40373636, Fax: 91-22-40373635.

E-mail: [email protected]

Website: www.chemtech-online.com AN ISO 9001:2008 CERTIFIED COMPANY


Marketing Initiative

We are in this Third Party Inspection Agency profession since more than two decades (since 1990)

who can probably give assistances for Inspection & Expediting within India and also we can provide you Technical Manpower for construction supervision & site inspection for various types of clients.

We have a team of experienced engineers to carry out Inspection and Expediting of equipments as mention below. These equipments are frequently inspected by us at various vendors location within India and mainly in Maharashtra and Gujarat state (we have a stationed Engineer at Gujarat) and our team is well conversant with it.

Electromech Engineering Enterprises (Third Party Inspection Agency)

Reactors, Agitators, Pressure Vessels, Heat Exchangers, Blenders, Valves, Blower, Centr i fuges, Centr i fugal Pumps, Glass l ined Reactor, FRP Tanks, Sparkler Fi l ters, Tray Dryer, PP & PVDF l ined f i t t ings, Conveyor, ANFD, FBD, Nauta mixer, Double Cone Dryer (RCVD), Blender, Co-mi l l , Pipe & Tube inspect ion, Pipe f i t t ings, Explosion cladded plate, etc.

We can support you with engineers who are knowledgeable & familiar with project requirements. Our engineers are trained in NDT methods like Ultrasonic, Liquid Penetrant Test & Radiography with Level II certified.

We are familiar with ASME, TEMA & API codes for Pressure Vessels, Heat Exchangers, Storage Tanks, Valves, Pumps etc

We can provide you help with monthly expediting reports, vendorÊs reports and Inspection reports.

We can follow up right from Drawing stage till completion involving material identification, stage fabrication and visiting sub vendors.

We are familiar with all vendors where we have carried out Inspection & Expediting. We can take up assignments on lump sum basis or on per day basis.

In the past we have carried out Inspection for some of the reputed companies like Gujarat State Fertilizer Co., Hindustan Organic Chemicals Ltd., Nocil India Limited, Larsen & Toubro Ltd., Asian Paints (India) Ltd., Rallis India Ltd. etc.

At present projects in hand, of reputed cl ients l ike SRF Limited, Dr. ReddyÊs Laboratories Limited, Glenmark- Generics Limited, Cheminova India Limited, Apcotex Industries Limited, Nitrex Chemicals India Limited, Syngenta India Ltd, Shasun Pharmaceuticals Ltd, Orchid Chemicals & Pharmaceuticals Ltd, to name some.

Electromech Engineering EnterprisesShop No. 22, Koyna Co-Operative Hsg.societyShantivan, Borivali (East), Mumbai 400066Tel: 022 2897 5275Mobile: 9820047858Email:[email protected];[email protected] Website: www.electromechengineering.com

1) AARTI INDUSTRIES LIMITED.2) ABHIDEEP CHEMICALS PVT. LTD.3) ABU DHABI OILFIELD SUPPLY CENTRE.4) AJANTA PHARMA LIMITED.5) ASIAN PAINTS (INDIA) LIMITED.6) ATUL LIMITED.7) APCOTEX INDUSTRIES LIMITED8) ASTONFIELD SOLAR (GUJRAT) PVT.LTD.9) BAYER (INDIA) LIMITED.10) CADILA PHARMACEUTICALS LIMITED.11) CASTROL INDIA LIMITED.12) CHEMINOVA INDIA LIMITED.13) CHEMITHON ENGINEERS LIMITED.14) CIPLA LIMITED.15) COOLING QUALITY MANAGEMENT16) DOWCHEMICAL INTL PVT.LTD.17) DCW LIMITED.18) DR. REDDYÊS LABOARTORIES LTD.19) DUFON LABORATORIES LIMITED.20) DYKE ENGINEERING SERVICES21) DEEPAK NITRITE LIMITED22) EMCURE PHARMACEUTICALS LIMITED.23) ENZAL CHEMICALS (I) PVT. LTD.24) EVEREST FLAVOUR LIMITED.25) EXCEL PLANTS & EQUIPMENTS PVT.LTD.26) FIRMENICHAROMATICS PRODUCTION

(INDIA) PVT. LIMITED.

27) FILTRA CATALYSTS & CHEMICALS LTD.28) GERMEN REMEDIES LIMITED.29) GODREJ INDUSTRIES LIMITED.30) GLENMARK GENERICS LIMITED.31) GUJARAT STATE FERTILIZER CO.32) HINDUSTAN ORGANIC & CHEMICALS33) HINDUSTAN LEVER LIMITED.34) HINDUSTAN POLYAMIDES &

FIBRES LTD.35) HEUBACH COLOUR PVT. LTD.36) INNOVATIVE ORGANICS.37) ICI INDIA LIMITED.38) ICL PERFORMANCE PRODUCTS LP.39) JAPRO ENGINEERING SERVICES

PVT. LTD.40) JINDAL DRUGS LIMITED.41) KOPRAN LIMITED.42) LARSEN & TOUBRO LIMITED.43) LUCID COLLOIDS LTD. 44) LUPIN LABORATORIES LIMITED.45) LUPIN CHEMICALS LIMITED.46) LUPIN AGROCHEMICALS PVT. LTD.47) LIBRA TECHCON LTD.48) LASONS INDIA LIMITED49) MATRIX LABORATORIES LIMITED.50) MERIND LIMITED.51) METROPOLITAN EXIMCHEM PVT. LTD.

We have served more than 100 clients; some of them are listed below

ADVERTISE TO EXPAND

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For Details Contact


Taj Building, 3rd Floor, 210

Dr D N Road, Fort, Mumbai - 400 001

Tel: 022-4037 3636, Fax: 022-4037 3635

Email: [email protected]




SURAJ LIMITED an ISO-9001, 14001, BS OHSAS 18001 Certified Company are Manufacturers and Exporters of Stainless Steel Seamless & Welded Pipes, Tubes & ÂUÊ Tubes and Large Diameter

Welded Pipes in various sizes, grades & specifications as per customer requirements. Suraj has strong presence in global market and serving more than 70 countries such as EU, Gulf, South East, US & Latin America.

Materials: All Austenitic, Ferritic, Duplex & Super Duplex Stainless Steel Specification: As per ASTM, ASME, DIN, NFA, JIS StandardSize Range : Welded: 6.0 mm OD 1016 mm OD Seamless:6.0 mm OD 323.9 mm ODThickness: Welded: 0.6 mm 25 mm Seamless: 0.8 mm 25 mm Pipe Length: Upto 12 mtr longTube Length: Upto 30 mtr long Specialization: Heat Exchangers, Heating Elements, Surface Condensers, Evaporators Digestors, Instrumentation Tubing and Fluid Piping

Suraj Limited

SURAJ LIMITED„Suraj House‰, Opp. Usmanpura Garden, Ashram Road, Ahmedabad 380 014 ,Gujarat INDIA Phone: +91 79 2754 0720/21; Fax: +91 79 2754 0722 Email: [email protected]; Webpage: www.surajgroup.com

Application : Refinery, Petro-chemical, Food, Pharma, Fertil izer, Oil & Gas, Breweries, Sugar, Ship Building.Suraj also holds certificates for quality in accordance with AD2000 MERKBLATT W0 and Pressure Equipment Directives [PED] 97/23/EC from TUV Nord and offer material under all national & international Third party Inspection. SURAJ also have their own lab to examine various tests such as Hydro test, Eddy Current, PMI, IGC, UT, RT, Spectro analysis, Mechanical properties and many others as per customer requirements.

Jumbo Bagging System

For bulk bagging (500 kg / 1000 kgs) of any dry powder material or free flow granular solids like Cocoa, Starch, Dolomite, Ore etc...

Are you facing problems with man power shortage and low production?

Are you trying to cut down the increasing man power costing? Would you like to convert your 40/50 kg bags to 1000kg bags

as done by major FMCGÊs? Are you trying to resolve issues related to weight inaccuracy

/ hygiene / human errors?

LCS offers Jumbo Bagging System to solve your problems.

Features Bag Clamp System - To avoid leakage at mouth of the bag Weighing System - For achieving accuracy in weighing Dust Collection Provision - For collecting dusts during fil l ing

bag with material Air Purging System - For expanding bag to its full size Vibrating System - Moves bag up and down to create more

space and proper shape of bag

LCS Controls Private LimitedPartner in weighing & Automation34 & 35, First link street, Nehru Nagar, off Rajiv Gandhi Salai, Kottivakkam, Chennai - 600 041, IndiaPhone: +91-44-24540345, +91-44-24542510 Fax: +91-44-24540347; Mobile: +91-94440 24124 / 24125 / 24537E Mail: [email protected] Website: www.lcscontrols.in

Benefits High Speed & Accuracy Rugged & Reliable Agitating Mechanism Feeding Mechanism - Vibro /

Screw Multi Stage Filling Manual Coarse / Fine Feed Auto Start / Stop

Specifications Display - 6 digits LED Display Calibration Digital Programmable - Membrane

Keypad Resolution - 1 in 10,000 Accuracy - Better than 0.5% Speed - From 2min (depending on material flow



The construction industry in India is the largest growing industry, with its rapid growth and globalisation has enabled the construction industry adopt latest technologies in both materials used and

methods of construction resulting in a growing demand of world class quality packaging for the construction chemicals such as admixtures, accelerators, air entrainer, underwater concecrete, curing compounds, tile adhesives, modifiers, and foam concrete.

There is always a need to complete projects at reduced cost, coupled with speed and safety. This in turn demands proper and optimum utilisation of recourses. Understanding this need Time Technoplast Packaging - exacting the needs of demanding customers.

Time Technoplast is an established industrial packaging player in the Asian subcontinent with over 52 manufacturing facilities spread over Egypt, Bahrain, UAE, India, China, Thailand, Malaysia, Indonesia, Taiwan and Vietnam, offering PE drums, GNX IBCÊs and plastic containers in 20-200 lit capacity.

Drums designed and developed by the company is an established brand, manufactured across India. It is patronised by leading multinational & national companies. With its robust design, global acceptance, Time Tech is a preferred brand among users.

Time tech industrial packaging 'TECHPACK' is the outcome of experience and technological perfection honed over the years in different geographical location.

Be it special profile for optimum emptying, designing a new pack of pressure sensitive chemicals making smart light weight drums, using 'MIDAS' technology for greener tomorrow, designing for maximum and safe shipping container utilisation or the capability to process new age material for higher performance, TECHPACK has continuously set industry benchmarks. A wide range of options are available in narrow mouth, wide mouth and open top drums or containers in variety of sizes and even customised for applications.

Product Range:XL RING DRUMS Time Technoplast packaging range TechPack offers the very XL-Rings drums with two extended XL-Rings at the top and bottom for easy handling, better stackability and excellent drop impact strength. These patented products have set new standards in bulk packaging. Provided with two opening of 50mm each and 100% leak proof plugs with sealing gaskets, these drums are best suited for packaging chemicals such as Ad Mixture chemicals, Concrete Admixtures, Plasticisers etc.

Features: Complete emptying | Leak proof | Extended XL Ring for better Handling | UN Approved

Time Technoplast Ltd

Time Technoplast Ltd 2nd Floor, 55, Corporate Avenue,Saki vihar Road, Andheri (E)Mumbai - 400072. Maharashtra. IndiaTel: +91 22 7111 9500 / 9999 / 2803 9999 / 9700E-mail: [email protected] Website: www.timetechnoplast.com; www.timegroupglobal.com; www.techpackcontainers.com

PLASTIC PAILSFor products that are sold off the shelf, Plastic Pails are the best bet. They are the marvel of thin walled injection molding, robust design, easy handling and excellent printing. Moreover, they are very convenient and have a high resale value. They are best known for packing 7 storaage of water seleants, electrical insullation chemicals, cement mixtures etc.

Features: Tight fiting Lid | Leakproof sealing | Temper evident Locking | Nestable

POLYCANSTECHPACK Polycans are undoubtedly the strongest, safest and most cost-effective packaging solutions and are easily the preferred choice over jerry cans/carbouys. Specially designed for extreme handling conditions, they are suited for domestic and export packaging.

Features: Stackable without pallet | Zero Leakage | 100% Drainable IBCGNX Bulktainer - futuristic packaging solutions. GNX Bulktainer is designed with exclusive features for efficient performance even in rugged terrains and rough handling. These bulk containers are useful for packing Admixture chemicals and Cement additives.

Features: Easy to handle | Higher Stack Performance | Higher storage capacity

So, whatever be your packaging need, ask for TECHPACK - an undisputed name in packaging.



The EIMCO-K.C.P. Ltd is a leading manufacturer of equipment based on EIMCO, USA technology for Liquid Solid separation

for industrial and Environmental Applications, Thickening, Clarification, Classification, Vacuum Filtration, Aeration Systems etc. The CompanyÊs products and technical services are extensively used in mineral processing, Chemical Processing, Food Processing, Refining, Pulp and Paper, Power Plant, Municipal & Industrial Water and Wastewater Treatment.

The EIMCO K.C.P. Ltd is an ISO 9001 company Certified by Lloyds Register Quality Assurance Limited, England with a fully furnished workshop located at Ambattur Industrial Estate, Chennai, India to have 100% quality control.

No single machine is perfect for every application or site condition. Whether you need Thickening, Clarification, Classification, Vacuum Filtration or Aeration Systems, Our engineers can pull the right system together from the largest selection of equipment options on earth. One system is going to

EIMCO-K.C.P. Ltd

perform best on your next job, but only Eimco K.C.P can deliver on them all. You find the

work. WeÊll find the way.

As the demand for commodities grows, mining companies and steel industries need a partner to support them in their efforts. A partner who understands the issues important to the mining and steel industry like sustainability and productivity. And a partner with the equipment, solutions and technologies to support their operations.

Eimco-K.C.P is committed to being that partner. We provide the broadest line of Classification, Sedimentation and Filtration equipment in the industry.

The Eimco K.C.P LtdRamakrishna Buildings,239, Annasalai, Post Bag No, 5644, Chennai - 600 006Tel: +91 44 2855 5171; Fax: +91 44-2855 5863Email: [email protected]; Website: www.ekcp.com

Mineral Processing• Iron• Copper• Coal• Base Metals• Silver• Gold• Platinum group• Nickel• Diamond• Nickel• Uranium• Aluminium• Bauxite• Mineral Sands

Application• Grinding• Concentrate• Tailing• Leach• Clarification• High Density Slurry• Counter Current Decantation• Paste Backfill• Smelters• Cement Industry• Gas cleaning plant• Steel melt shop• Recausticizing system• Causticizers

• Lime Slaker• Green Liquor Clarifier• White Liquor Clarifier• Lime Mud Washer• Lime Mud Filter

High rate and conventional Thickeners, Clarifiers and Clarifloculators, Horizontal Vacuum Belt Filters, Rotary vacuum Drum Filters, Disc Filters, Spiral Classifiers, Automatic Dosing systems, High volume Classifiers, etc

Rani Shereen Varghese (B.Tech Chemical)General Manager Marketing

THE EIMCO - K.C.P. LTD


ProductsCEW

NeoMag is a powerful and reliable energy-saving, SS centrifugal pump with magnetic coupling. (This is the best alternative to conventional seals.)

As compared to centrifugal pumps with mechanical seals, the NeoMag is a maintenance-free solution. Loss of production due to leakages/maintenance in system can be avoided.

Main advantages whilst being hermetically sealed are no power losses, no additional heat generation in system, good chemical stability, competitive price level and increased efficiency (tested and calculated

energy saving up to 30%). resulting in increased efficiency factor >70%.

Application areas include chemicals, process engineering, pharmaceuticals, biotechnology, food industry, petrochemicals and water management.

For details contact:BEDA Flow Systems Pvt LtdW-7 Sector XI, NoidaUttar Pradesh 201 301 Tel: 0120-432 99-90 E-mail: [email protected]

Energy Saving SS Centrifugal Pump

Precision Environment Measuring Instruments

KUSAM-MECO offers a full range of portable meters. The environment measur ing ins t r ument range consists of about 50 instruments, viz, anemometers, thermo hygrometers, sound level meters, lux meters, paper,

wood and grain moisture meters, solar power meter, infrared thermometer, EMF detector, contact type thermometers, thermo anemometer, temperature/humidity data logger, CO2/temp/RH monitor data logger and hygro thermometers, etc.

Working closely with biotech, chemical, food, pharma, pollution, monitoring industry, printing industries, their products find wide applications in them. KUSAM-MECO also offers a full range of test and measuring instruments UL approved digital multimeters and clampmeters, insulation resistance testers, etc.

For detai ls contact:Kusam Electrical Industries LtdG-17 Bharat Industrial Estate, T J Road, Sewree (W), Mumbai 400 015Tel: 022-24124540, 24181649 | Fax: 91-022-24149659, 27751612E-mail: [email protected] / [email protected]

or Circle ReadersÊ Service Card 1 or Circle ReadersÊ Service Card 2

or Circle ReadersÊ Service Card 3

High-purity Lab Acids for Trace Metal Testing

Marketed under renowned J T Baker brand, the new BAKER INSTRA-ANALYZED Plus acids product line features a selection of widely used acids specially formulated to enable more accurate trace metal analysis in the very low parts

per billion (ppb) range (most from 0.1-1ppb). BAKER INSTRA-ANALYZED Plus acids offer customers upgraded capability from AvantorÊs popular BAKER INSTRA-ANALYZED acid line products. The new line of high-purity acids is produced under strict protocols, quality tested for up to 64 key trace metals such as iron and lead to ensure purity, and packaged in environmentally-friendly recyclable HDPE bottles. With its new BAKER INSTRA-ANALYZED Plus acids and other existing BAKER INSTRA-ANALYZED, ULTREX II, and BAKER ANALYZED ACS grade acids, Avantor offers customers a complete solution for trace metal analysis across many laboratory applications.

For details contact:Avantor Performance Materials, Inc 3477 Corp Parkway,Suite 200, Center Valley,PA 18034, U.S.A. Tel: 1-610-573-2600 | Fax: 1-610-573-2610 E-mail: [email protected]


CEWProducts

Particle Sizer

TThe new ANALYSETTE 28 ImageSizer is the ideal instrument for analysis of par ticle shape and size of dry, free-flowing powders and bulk solids in a measuring range from 20 øm to 20 mm.

Via the optical analysis of par ticle shape and par ticle size, damaged par ticles, contaminates,

agglomerates or oversized or undersized par ticles are identified accurately and fast, and can be viewed as single images. At the same time, the instrument offers a fast and efficient par ticle size measurement.

The measur ing t ime, depending on the sample quantity, is below 5 minutes and the result is available immediately. This makes the ANALYSETTE 28 ImageSizer the perfect measur ing instrument for the easy quality control, as well as for research and for laboratory tasks and it is the fast alternative to sieving.

For detai ls contact:FRITSCH GmbH Milling and Sizing, Industriestrasse 8 55743 Idar-Oberstein, GermanyTel: +49 67 84 70 146 | Fax: +49 67 84 70 11E-mail: [email protected]



Roto Pumps Ltd offers horizontal shor t shaft external bearing pumps RSE Series in 1,500 m/hr capacity, 40 bar pressure, 90 C temperature and 100,000 cst viscosity in standard cast iron construction with integral liner and in-line suction and delivery, capable of handling non-lubricating fluids.

The bearings are separated from main pump housing and separately lubricated. These pumps can be

supplied with an inbuilt safety relief valve for 100% bypass. Shaft sealing is by gland packing/mechanical seal. Sump heating options are available.

For details contact:Roto Pumps LtdRoto House13 Noida SEZNoida, Uttar Pradesh 201305Tel: 0120-3043901Fax: 91-0120-3043928E-mail: [email protected]

Horizontal Short Shaft External Bearing Pumps


ProductsCEW

HRS hot water system is the most versatile and compact hot water generation system. It provides highly efficient solution to instantaneous hot water generation using energy efficient heat exchangers (Funke Brazed or Gasketed plate heat exchanger or Ecoflux corrugated tube heat exchanger). It can also be installed with storage (buffer) vessel for semi-instantaneous applications and in conjunction with solar-based hot water systems. A hot water system not only heats the water to a desired temperature using low pressure steam but also maintains the required temperature of water with better temperature control using automation and control.

It finds application in pharma single fluid heating and cooling systems, food, HVAC, hospitals, hotel, textile and breweries. Hot water generation is instantaneously available for fluctuating process loads and urgent demands. System designed with heat exchangers with very high heat transfer rates and efficiency. Inexpensive solution in terms of initial capital costs, installations, operation and maintenance cost. Ensures accurate temperatures for hot water required for the most heat sensitive processes. Up to 75% less space required for installation when compared to conventional hot water tank heating systems

For details contact:HRS Process Systems Ltd201/202 Karan Salene, 861 Bhandarkar Institute Road, Pune, Maharashtra 411 004Tel: 020-25663581, 66047894, 66047895 | Fax: 91-020-25663583E-mail: [email protected] / [email protected]

Hot Water Systems

Industrial Solutions

Holmatro has now built up broad experience and good references in the field of „customised‰ solutions in the world of heavy lifting and movement. Now the time has come for the company to officially publicize its innovations, under

the new name „industrial Solutions‰.Whether it be the computer-controlled synchronized positioning of heavy loads, the horizontal movement of industrial objects and installations of exceptional sizes in limited surroundings or the larger vertical movements of heavy loads with accurate control, nothing is impossible for the Holmatro Industrial Solutions team. Cooperation with the customer, ease of use and safety are recurring starting points for the development of these „customized‰ solutions. All Holmatro products are developed, manufactured and thoroughly tested in-house. Resulting in real Dutch quality and reliability. The products have a life span that extends for years, which can moreover be extended by a comprehensive service program.

For detai ls contact:Holmatro GroupLissenveld 30, PO Box 66 4940 AB Raamsdonksveer, Netherlands Tel: +31 (0) 162 751 480E-mail: [email protected]



Vertical Pressure Leaf Filter

SAP Filter Pvt Ltd has made a mark in manufactur ing and expor ting a spectrum of f i l tration equipment. Its product range is renowned for i ts quality and durabil i ty.

SAP Filter Pvt Ltd offers ver tical pressure leaf fi lter for fi ltration of liquids

with solid content up to 5 to 7 per cent and finds application in edible oil, chemicals, and food and pharma industries in areas up to 100 m2 with dry or wet cake discharge.SAP make ver tical pressure leaf fi lter equipped with SS filter element assembled on a filtrate collecting manifold and enclosed in a hermetic steel casing with a pneumatically operated vibrator for shaking of the filter cake

For details contact:SAP Filter Pvt LtdPlot No: A-5, Sector-1The Vasai Taluka Industrial Co-op Estate LtdGoraipada, Vasai(E), Dist: Thane, Maharashtra 401 208Tel: 0250-2458982, 3208273, 2023040 | Fax: 91-0250-2458982E-mail: [email protected] / sales @sapfilter.com


CEWProducts

Cresset, innovative provider of computational chemistry software and services, offers Forge V10.3. This major new release includes significant enhancements to the science, visualization, and integration of Forge, the computational workbench for ligand-based drug design, including significant enhancements to Activity Miner. Activity Miner has been a huge hit since its release. Customers have found it invaluable for

finding and understanding critical activity cliffs in the SAR landscape. In response to customer requests, Cresset have now added selectivity cliffs the use of multiple activity parameters to look for changes that disproportionately change one activity relative to another.

Forge V10.3 includes improved conformation hunt settings that give significantly fewer, lower energy conformations, enabling you to find the correct alignments even more reliably. Major highlights of Forge V10.3 include: find and understand structure-selectivity relationships in Activity Miner; perfect the design and activity profile of new molecules using 3D-QSAR models for both primary and secondary activities; rapidly analyse large datasets by connecting Forge to cloud or local cluster resources to perform calculations using the Cresset Engine Broker module; create detailed pharmacophores from diverse ligands using the integrated FieldTemplater module; find new chemical intellectual property using CressetÊs Blaze for ligand-based virtual screening directly from your desktop; and manipulate complex data within Forge using the new Column Script Editor to automatically modify or calculate molecular properties in the data table.

For details contact:CressetNew Cambridge House, Bassingbourn Road, Litlington, Cambridgeshire SG8 0SS, U.K.Tel: +44 (0)1223 858890 | Fax: +44 (0)1223 853667E-mail: [email protected]

Computational Workbench


Horizontal Pressure Leaf Filter

SAP Filter Pvt Ltd has made a mark in manufacturing and exporting a spectrum of filtration equipment. Its product range is renowned for its quality and durability. SAP Filter Pvt Ltd offers horizontal pressure leaf filter for filtration of liquids with higher solid content in edible oil, food, chemical, and pharma, and molten sulphur industries in areas from 2 m2 up to 200 m2 with dry or wet cake discharge. Opening and closing of filter is by hydraulically

operated bayonet clamp ring. Both shell and bundle retraction is available. Material of construction includes SS, carbon steel, carbon steel with PP, PVDF, rubber lining.

For detai ls contact:SAP Filter Pvt LtdPlot No: A-5, Sector-1, The Vasai Taluka Industiral Co-op Estate LtdGoraipada, Vasai(E), Dist: Thane, Maharashtra 401 208Tel: 0250-2458982, 3208273, 2023040 | Fax: 91-0250-2458982E-mail: [email protected] / sales @sapfilter.com



ProductsCEW

The heatless dryers are fully automatic. It consists of two drying towers filled with molecular sieves/activated alumina desiccant. At a given time, one tower is adsorbing while the other is regenerating. Both the towers are inter-connected by valves with piping. The towers change-over automatically at pre-determined timings. The wet air passes upward through the desiccant and drying takes place by adsorption.

The moisture level comes into equilibrium and as a result water vapour in the gas stream condenses as a film on the desiccant. The dry air comes out from top having a dew point of (-)40 Deg C or as designed. While one tower is in drying cycle, the other tower undergoes regeneration. The tower under regeneration is depressurised to atmosphere and some of the dry air from drying tower is passed through this tower, which results desorption of desiccant due to pressure swing. When the regeneration is complete, the purge valve is closed and the tower slowly repressurised to the line pressure for a smooth changeover.

The drying period of 5 minutes provides an efficient dew point of (-)40ÀC or better. In regeneration approximately 60-90 seconds are required for repressurisation. All the interconnected valves operate automatically by a sequence programmer.

For details contact:Mellcon Engineers Pvt LtdB-297 Okhla Indl Area, Phase !, New Delhi 110 020Tel: 011-26811727, 26816103 Fax: 91-011-26816573E-mail: [email protected]

Heatless Dryer

or Circle ReadersÊ Service Card11


New Dual-View Atomic Spectrometer

Agilent Technologies, Inc offers Agilent 5100 Inductively Coupled Plasma Optical Emission Spectrometer (ICP-OES). The new system enables customers to run samples faster, using less gas and without compromising performance on even the toughest samples. The new instrument is ideal for labs doing food, environmental and pharma testing as well as mining and industrial applications.

While conventional dual-view systems require up to four sequential measurements per sample, the Agilent 5100 requires only one, thanks to its innovative Dichroic Spectral Combiner and Synchronous Ver tical Dual-view technologies. These innovations wil l enable customers to perform their analyses with greater speed, accuracy and ease, saving them time and money. With the new system, customers wil l be able to take the

guesswork out of method development with intuit ive ICP Exper t software and Dichroic Spectral Combiner technology.

They can also capture al l wavelengths in one measurement for higher precision without delays. The systemÊs ver t ical torch wil l enable them to measure even the most challenging samples from high matr ix to volati le organic solvents with a high degree of confidence. The Agilent 5100 is available in three configurations, al l featur ing a robust ver t ical torch: Synchronous Ver tical Dual View (SVDV) delivers the fastest analyses and the lowest gas usage; Ver tical Dual View (VDV) offers high throughput and is upgradable on-site to the SVDV configuration if higher throughput is needed; and Radial View (RV is ideal for labs needing a fast, high-performance radial ICP-OES.

For details contact:Agilent Technologies Inc5301 Stevens Creek Blvd Santa Clara, CA 95051U.S.A.E-mail: [email protected]


CEWProducts

Photorealistic printing and more legible product information are some of the advantages of the newly launched Brilliance tube packaging from Sanner GmbH. Combined with proven Sanner desiccant closures, the tubes are best suited for effervescent tablets, but also work with conventional or coated tablets and other solid pharma products.

Manufactured using IML technology, the packaging offers customers a wide range of design options and a premium-quality appearance. Brilliance Tubes

combined with proven Sanner desiccant closures protect their contents perfectly against light and moisture.

The advantage of in-mould labeling (IML) technology is that packaging production and decoration are combined into a single process. Printed labels are placed in the mould and the liquid plastic is injected. The temperature of the plastic causes the label to fully bond with the tube. Additionally, the geometry of the tube base ensures that the tubes can be easily packaged in standard commercial sales trays.

For details contact:Sanner GmbHSchillerstraße 76, 64625 Bensheim, GermanyTel. +49(0)6251 938-0 | Fax: +49(0)6251 74672 E-mail: [email protected]

Decorated Packaging


Low Air Pressure Oil/Gas/Dual Fuel Burners

Low air pressure oil/gas/dual fuel burners from Vacunair Engineering Pvt Ltd are excellent for high temperature furnaces for steel plants, rolling mills, ferrous non-ferrous foundries, rotary furnaces, glass and silicate industry, ceramic and refractory furnaces and many more applications.

Low air pressure oil/gas/dual fuel burners from Vacunair Engineering are available with several added instruments for automatic operations and are available in capacity ranging from 10 to 500 litres/hr.

For detai ls contact:Vacunair Engg Co Pvt LtdNr Gujarat Bottling, RakhialAhmedabadGujarat 380 023Tel: 079-22910771Fax: 91-079-22910770E-mail: [email protected]



ProductsCEW

Tecan has introduced an innovative new consumable device offering increased throughput and capacity for Freedom EVO workstations. The patent pending Disposable Transfer Tool is designed for use with TecanÊs Nested LiHa disposable tips, and offers fully automated handling of empty tip trays without the need for a gripper.Nested LiHa disposable tips offer increased worktable capacity for tip storage, allowing five trays of 350 øl tips to be stacked on a single SLAS-format carrier position. Until now, this solution has only been available for instruments equipped with a Robotic Manipulator Arm or a MultiChannel Arm gripper option

to remove empty tip trays. Tecan has overcome this by developing an innovative consumable device the Disposable Transfer Tool that allows the Freedom EVOÊs Liquid Handling (LiHa) or Air LiHa Arm to pick up and dispose of empty trays. Implementation of

the Disposable Transfer Tool is designed to be as easy as possible using Freedom EVOware (v2.6 SP1 onwards). The only additional hardware required is a 16-position Transfer Tool Holder, which can be quickly and easily filled by hand prior to beginning a series of runs. This elegant solution is particularly suited to smaller Freedom EVO workstations where workdeck space is limited. It also offers benefits for larger systems, allowing the gripper to perform other operations while the LiHa Arm disposes of empty trays, improving productivity and functionality for high throughput applications.

For details contact:Tecan Trading AGSeestrasse 103, CH-8708 Männedorf, SwitzerlandTel +41 (0)44 922 81 11 | Fax +41 (0)44 922 81 12 E-mail: [email protected]

Disposal Transfer Tools

AODD Pumps

AlmatecÊs E-Series plastic AODD pump has been upgraded with electrically conductive PTFE diaphragms to provide safer transfer of chemicals whi le avoiding dangerous electrostatic discharge.

Pumps with non-conductive diaphragm materials can be susceptible to

electrostatic discharge. Static can accumulate in liquid being moved or transferred through a non-conductive pump, leading to a sparking in a flammable vapour-air mixture. One common cause of electrostatic discharge occurs when the pump runs dry, which means the pump, will continue to operate even after the chemical has been depleted. To prevent the pump from running dry, operators will have to insert nitrogen, water or carbon dioxide once the fluid transfer has been completed to avoid potentially dangerous electrostatic discharge.

For detai ls contact:Dover India Pvt Ltd PSG40 Poonamallee By-pass,SenneerkuppamChennai 600 056Tel: 044-26271020E-mail: [email protected]



Dew Point Sensor

CS Instrument, Germany offers dew point sensor FA400 required for niche market for aluminium smelter, steel plant, pharma industry, food and beverage and health care for continuous monitoring with local digital display. Dew point sensor FA400 has 3 different ranges - refrigeration, adsorption and membrane dryer. Dew point sensor FA400 has digital integrated display,

extremely precise long term stability with quick response time, output 4-20 mA analogue output and also PC connection with SDI interface with standard measuring chamber up to 16 bar with special optional features up to 350 bar. Output signal via software or DS400 dew point set possible to show engineering unit %RH, Ctd, g/m3, mg/m3, ppm V/V. In addition, the user can define alarm to optimize and achieve better air quality and threshold value adjustable via keypad for alarm relay max 60 V DC and 0.5 A.

For details contact:AV Measurement & Control (India)Plot No: P46/1, 102 Sonata Comml Complex Opp: Unique Automobile, Nr ICICI Bank, MIDCDombivli (E), Dist: Thane, Maharashtra 421203Tel: 0251-2424418, 6458885E-mail: [email protected] / [email protected]


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Process Intensifi cation

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ChemTECH World Expo 201528-31 January 2015, Mumbai,India

Industry Focus: Fertilisers

Special Section on Pumps & Valves

FERTILISERS: ALL EYES ON GOVERNMENT Ÿ 24

ItÊs a Serious Business, Govt Must Pull its Socks Up Ÿ 26

Technological Advancements Will Pave the Way for Growth Ÿ 30

Will Bringing Urea Under NBS Make the Difference? Ÿ 36

Corrosion Tacking Challenges in Indian Fertiliser Industry Ÿ 40

Opportunities for EPC Players in Fertiliser Sector Ÿ 52


Corcon 2014

Dates: 12-15 November 2014Venue: Grand Hyatt, MumbaiDetails: Corrosion Conference and ExpoOrganiser: Nace International Gateway India Section (NIGIS)Contact: +91 22 2579 79 30; +91 22 2579 73 54Email: [email protected] Website: www.corcon.org

World PetroCoal Congress

Dates: 15-17 February 2015Venue: Convent ion Centre-NDCC, New DelhiDetails: On sustainable usage of the non-renewable resourcesOrganiser: Energy and Environment Foundat ionContact: +91 11 2275 8149Email: puni t .nagi@ee-foundat ion.orgWebsite: www.wor ldpetrocoal.com

India Chem

Dates: 9-11 October 2014Venue: Bombay Convention & Exhibition Centre (BCEC), MumbaiDet a i ls : An exh ib i t i on on chemica l , pe t rochemica l and pharmaceutical sectorOrganiser: Federation of Indian Chambers of Commerce & IndustryContact: +91 11 2373 8760; +91 11 2376 5081Email: [email protected]: www.indiachem.in

Dye+Chem Bangladesh

Dates: 3-6 September 2014Venue: Dhaka, BangladeshDetails: Biggest show in Bangladesh for buyers and suppliers of dyes & chemicalsOrganiser: Conference & Exhibition Management Services LimitedContact: +65 6829 2144Email: cems@cems-asiapacif ic.com Website: www.cemsonline.com

Speciality & Agro Chemicals America

Dates: 8-10 September 2014Venue: Charleston, USADetails: The 3rd Annual Event for Agro, Specialty, and Custom ChemicalsOrganiser: American Chemical MarketingContact: 1 215 882-9100Email: [email protected] Website: www.chemicalsamerica.com

RPTC

Dates: 8-11 September 2014Venue: Moscow, RussiaDetails: Russia & CIS Refining Technology Conference & ExhibitionOrganiser: Euro Petroleum Consultants LtdContact: +7 495 517 77 09Email: [email protected] Website: www.europetro.com

ICIF, China

Dates: 11-13 September 2014Venue: Tianjin, ChinaDetails: The 13th International Chemical Industry Fair 2014 for Chemical & PetroleumOrganiser: China National Chemical Information CentreContact: +86 10 6444 4135Email: [email protected] Website: www.chinaexhibition.com

Middle East Coatings Show 2015

Dates: 9-11 March 2015Venue: Dubai International Convention & Exhibition Centre, UAEDetails: An event for raw materials suppliers and equipment manufacturersOrganiser: DMG Events ME & Asia Contact: +971 4 4380355Email: [email protected]; [email protected] Website: www.coatings-group.com

Watertech India 2014

Dates: 10-12 September 2014Venue: Pragati Maidan, New DelhiDetails: Trade Fair for Water & Wastewater Treatment & ManagementOrganiser: Messe Frankfurt Trade Fairs India Pvt LtdContact: +91 22 6144 5900Email: [email protected]: www.watertechindia.com


CEWProject Update

New Contracts/Expansions/RevampsThe following list is a brief insight into the latest new projects by various companies in India.

CHEMICALS Vensun Laboratories is implementing a 200-TPA chemicals manufacturing project - titanates esters and its derivatives, phosphate esters and its derivatives, organic chelates and itÊs derivatives, ammonium chloride, in MIDC, Chincholi, district: Solapur, Maharashtra. The project is spread over an area of 2-acre land and entails an investment of ̀ 40-million. Consultant and equipment supplier have been appointed. The project is waiting for environmental clearance. Civil work is in progress and is scheduled for completion soon.

Punjab Chemicals & Crop Protection i s p lann ing a thiamethoxam manufacturing project in villages: Kolimajra and Samalheri, district: Mohali, Punjab. The project will come up at the companyÊs existing plant premises. The project is in planning stage.

SK Solvochem Private Limited is planning a 1,500-TPA synthetic organic chemicals manufacturing project - dye and dye intermediates, bulk drug and intermediates excluding drug formulations, synthetic rubbers, basic organic chemicals, other synthetic organic chemicals and chemical intermediates, at a cost of ` 20 million in village: Nimbua, district: Mohali, Punjab. Public hearing was held in January 2014. The project is waiting for environmental clearance.

Nuray Chemicals is implementing a ferric citrate-manufacturing project at the existing unit - SIDCO Industrial Estate, Kakalur, district: Tiruvallur, Tamil Nadu. Civil, mechanical and engineering work is in progress. The project is scheduled for completion in Q4 2014.

Lion Tapes Private Limited, a sister concern of Stretch Bands (Gujarat), is planning a 100-TPM synthetic organic chemicals manufacturing project in GIDC, Chitra Estate, district: Bhavnagar, Gujarat. As of October 2013, the project is waiting for environmental clearance. Work on the project is expected to commence soon. According to the MoEF sources, the project includes products like 40-TPM of Fast Red B Base, 20-TPM of Fast Bordeaux GP Base, 10-TPM of Fast MNPT (Red G) Base, 5-TPM of Fast Red 3GL Base, 10-TPM of Fast Scarlet RC Base, 5-TPM of Fast Yellow GC Base, 5-TPM of Fast Orange GC Base and 5-TPM of Fast Red RC Base. The commercial waste generated from administration building would be disposed through sale to scrap vendors The generated industrial wastewater will be treated in ETP and treated effluent will be discharged through common pipeline.

Vasudha Pharma Chem Limited is planning a chemical manufacturing project - 1-(2-Phenylethyl) piperidin-4-one manufacturing unit in Parawada, distr ict: Visakhapatnam, Andhra Pradesh. As of September 2013, the project is waiting

for Government approval. 1-(2-Phenylethyl) piperidin-4-one is used as an intermediate in the manufacture of chemicals and pharmaceutical drugs. This is a new product line in the existing plant. The company also plans to produce Amitriptyline HCl in the same unit in future.

Resil Chemicals Private Limited is planning a specialty chemicals manufacturing project in Malur, district: Kolar, Karnataka. As of July 2013, land has been partially acquired. The project is in conceptual stage. Other details are yet to be finalized.

MININGSri Venkatesh Granites is planning a colour granite mining project in Kamanpur, district: Karimnagar, Andhra Pradesh. As of December 2012, environmental clearance has been received. The project will come up on 4.56-hectare of leased area. Global Enviro Labs is the environmental consultant.

Western Coalfields is planning the Penganga opencast coal mining project (3-MTPA and peak capacity is 4.5-MTPA) on 281-hectare land in Village Wirur, district: Chandrapur, Maharashtra. As of November 2012, the project has been submitted in the 59th EAC (Thermal & Coal Mining Projects) meeting held on 6th November 2012.

Central Coal Fields is planning the Ray Bachra underground coal mining project (0.3-MTPA) in district: Ramgarh, Jharkhand on 1215.45-hectare land. As of September 2012, the project has been submitted in the 57th EAC (Thermal & Coal Mining Projects) meeting held on 17th September 2012.

Rajasthan Rajya Vidyut Utpadan Nigam is planning the opencast 10-MTPA coal mining and a 10-MTPA coal washery project in district: Surguja, Chhattisgarh. As of August 2012, the project has been submitted in the 55th meeting of the EAC (Thermal & Coal Mining Projects) held on 28th August 2012.

Odisha Power Generation Corporation is planning the Manohar pur opencast coa l min ing pro jec t in d is t r ic t : Sundergarh, Odisha. As of July 2012, the company is waiting for environmental clearance.

Chhattisgarh Mineral Development Corporation is planning ÂSondihaÊ open cast and underground coal mining project in Chhattisgarh. As of July 2012, the company is waiting for environmental and forest clearance.

Central Coalfields Limited plans expansion of its Churi Benti UGP coal mining capacity from 0.16-MTPA to 0.81-MTPA (coal) in district Chatra, Jharkhand. As of June 2012, MoEF clearance has been received and the project is planned for completion in 2 years from zero date.


Project UpdateCEW

Zain Coke & Energy India is planning a 150,000-TPA metallurgical coke manufacturing project at a cost of ` 450-million to ` 500-million in Chickanthapura, district Bellary, Karnataka. As of May 2012, the project is waiting for revenue and statutory clearance and is planned for completion in 10 months from zero date.

Calcom Cement India, belonging to the BK Group, is implementing the New Umrangshu l imestone mining project in vi l lage New Umrangshu, distr ict: Dima Hasao, Assam. As of Apr i l 2012, mining work commenced in 2013.

Jaiprakash Associates is planning l imestone mining project in village Kothar, district: Satna, Madhya Pradesh. As of March 2012, the project is wait ing for environmental clearance and the project completion date is yet to be f inalized.

NON-CONVENTIONAL ENERGYSiddheshwari Paper Udyog is implementing a 6-MW r ice husk-based captive power project in Kashipur, district: Udham Singh Nagar, Uttarakhand. The project is coming up with an expansion of i ts kraft paper-manufactur ing unit. Civi l work is near ing completion and machinery has been ordered.

The Jeypore Sugar Company Limited is planning an expansion of i ts bagasse-based co-generation power plant from init ial 0.5-MW to 8.5-MW in vi l lage: Chagallu, distr ict: West Godavar i. Andhra Pradesh. As of January 2014, the project wil l come up along with a new 120-KLD grain-based disti l lery. The project is wait ing for environmental clearance.

Savera Beverages is planning a 5-MW coal and bagasse-based captive power project in village: Hiranwali, district: Fazilka, Punjab. The project is waiting for environmental clearance and is planned for completion in 6 months from zero date. 28-acre of land has been acquired. The project will come up along with a 100-KLD grain-based distillery to produce extra neutral alcohol.

Arunodaya Techsolar Power Projects Private Limited, an SPV of BM Solar Systems LLP, is planning a 5-MW solar independent power project in vi l lage: Kudluru, distr ict: Anantapur, Andhra Pradesh. Work on the project commenced in November 2013. 26-acre of land has been acquired. DPR is yet to be prepared. Approval has been received from the Central Power Distr ibution Company of Andhra Pradesh

NON-CONVENTIONAL POWERIPL Sugars & Allied Industries, a Group company of Indian Potash, is planning a 20-MW bagasse and r ice husk-based IPP spread over 250-acre of land in vi l lage: Motipur, distr ict: Muzaffarpur, Bihar. As of March 2012, the existing plant wil l be demolished and the new plant wil l be constructed. The project is planned for completion in 1-year from zero date.

Tathagata Bio Energy Private Limited plans to set up 12-MW biomass power plant in Gaya, Bihar. As of May 2011, work on the project is under planning stage .

Azure Power India Private Limited plans to set 10-MW solar photovoltaic power plant with an investment of ` 150-crore in Meghalaya. As of March 2011, work on the project is under planning stage.

THERMAL POWERTalavadi Cements , a subs id iar y o f B i r la Cor porat ion, is planning a 35-MW capt ive power project in v i l lage: Bar i , distr ict: Satna, Madhya Pradesh. JM Environet is the Environmental Consultant. The project is wait ing for environmental clearance. The power generated wil l be used for the cement project to come up in the same location, which is in planning stage.

VP Cements is planning a coal-based captive power plant - 1 40-MW in Phase-I and another 1 40-MW in Phase-II in village: Gundlakunta, district: YSR, Andhra Pradesh. The project is to be implemented in two phases. Land acquisition is under progress. Both the phases are waiting for environmental clearance. The project will come up as part of its ` 16-billion 2-phase integrated cement project. Work on Phase-I is expected to commence in 2015 and Phase-II in 2017.

Kanodia Cement, belonging to the Kanodia Group, is planning a 15-MW coal-based captive power project in Unit-I, Durgawati, distr ict: Kaimur (Bhabua), Bihar. The project is waiting for environmental clearance. Land has been acquired. The project wil l come up along with an ordinary por tland cement manufactur ing project. The total cost of both the projects is ` 900-mil l ion.

Hira Electro Smelters, formerly known as RVR Smelters, belonging to the Hira Group, is planning a 20-MW waste heat recovery-based captive power project in Bobbili, distr ict: Vizianagaram, Andhra Pradesh. The project is in conceptual stage. Work on the project is expected to commence in 2017. The project wil l come up along with a 50,000-TPA coke oven products manufactur ing project.

Jai Bhole Cement Combine, a group company of Zawar Sales, is planning a 72-MW coal and 10-MW waste heat recovery-based captive power project in Velabai, distr ict: Yavatmal, Maharashtra. Equipment supplier is yet to be appointed. The project is wait ing for f inal approval of environmental clearance. Work on the project commenced in March 2014 and is planned for completion in H1 2017. The project wil l come up as par t of i ts ̀ 151-bil l ion integrated cement project spread over 2,500-acre of acquired land.

Aditya Birla Nuvo is planning an expansion from 34.5-MW to 54.5-MW of i ts coal and l ignite-based captive power project at a cost of ` 8,500 mil l ion ( inclusive of viscose f i lament yarn project) at Indian Rayon unit at Veraval, distr ict: Gir Somnath, Gujarat. The project is wait ing for environmental clearance and is planned for complet ion in 2 years from zero date.


CEWProject Update

Project Country Value ($) Status

Middle East

Bahrain Refinery Expansion Bahrain 6,500,000,000 Bidding

Yateem Oxygen - Carbon Dioxide Extraction Plant Bahrain - Execution

Baiji Oil Refinery Iraq - Execution

Bazian Refinery Expansion Phase 3 Iraq - Bidding

Karbala Refinery Iraq 6,040,000,000 Execution

Ninewa Refinery Iraq - Execution

Al Zour Refinery Kuwait 15,000,000,000 Bidding

Clean Fuels Project (CFP) Kuwait 16,250,000,000 Execution

Duqm Refinery and Petrochemical Complex Oman 6,000,000,000 Bidding

Salalah Ammonia Plant Oman 700,000,000 Bidding

Salalah LPG Extraction Plant Oman - Study

QAFAC - Carbon Dioxide (C02) Recovery Plant Qatar 80,000,000 Execution

Ras Laffan Condensate Refinery - Hydrotreater Complex Qatar 350,000,000 Execution

Ras Laffan Condensate Refinery - Phase 2 Qatar 1,200,000,000 Execution

Jizan Export Refinery Saudi Arabia 7,000,000,000 Execution

Jizan Export Refinery - IGCC Project Saudi Arabia 8,500,000,000 Execution

SABIC/MRC Plastic Plant Saudi Arabia 500,000,000 Bidding

Shoaiba Bulk Storage Facility Saudi Arabia 600,000,000 Bidding

Borouge 3 UAE 4,500,000,000 Execution

IPIC - New Fujairah Oil Refinery UAE 3,500,000,000 Bidding

Ruwais Refinery Expansion (RRE) UAE 10,000,000,000 Execution

Ruwais Refinery New Facilities UAE 500,000,000 Execution

Africa Country Value ($) Status

Sonatrach - Paraxylene Crystallization Plant Algeria - Study

Tiaret Oil Refinery Algeria 6,000,000,000 Execution

Lobito (SonaRef) Refinery Angola 8,000,000,000 Execution

Soyo Refinery Angola - Planning

Cameroon Ammonia Urea Fertilizer Plant Cameroon 1,400,000 Study

Ain Sokhna Petrochemical Complex-Ammonium Nitrate Egypt 600,000,000 Execution

Alexandria Petrochemicals Complex - Ethylene Plant Egypt 600,000,000 Execution

Alexandria Petrochemicals Complex - Polyethylene Plant Egypt - Execution


Project UpdateCEW

Assiut Refinery Expansion Egypt 135,000,000 Completed

Tahrir Petrochemicals Complex Egypt 5,000,000,000 Execution

Gabon Ammonia Urea Fertilizer Project Gabon 1,300,000,000 Execution

Atwereboanda LPG Storage Facility Ghana 200,000,000 Study

Mbini Refinery Guinea 404,000,000 Study

Kenya Petroleum Refineries Limited (KPRL) Mombasa Refinery Kenya 17,000,000 Execution

Tobruk Refinery Libya - Completed

Mohammedia Refinery Rehabilitation & Expansion Morocco 816,000,000 Execution

Zinder Refinery (Soraz) Niger 980,000,000 Execution

Brass Fertilizer Plant Nigeria 3,500,000,000 Study

Dangote Oil Refinery Nigeria - Execution

Coega (Mthombo) Refinery South Africa 10,000,000,000 FEED

Mnazi Ammonia/Urea/Methanol Project Tanzania - Study

Hoima Oil Refinery Uganda 2,500,000,000 Bidding

Caspian Region Country Value ($) Status

Azerikimya Ethylene-Polyethylene Plant Azerbaijan - Execution

Oil, Gas Processing & Petrochemical Complex (OGPC) Project Azerbaijan 15,000,000,000 Study

Sumgayit Nitrogen Fertilizer-Urea Complex Azerbaijan - Study

Abadan Refinery Upgrade Iran 3,000,000,000 Execution

Esfahan (Isfahan) Refinery Expansion Iran 2,500,000,000 Execution

Hamedan Polyvinyl Chloride (PVC) Iran 60,000,000 Execution

Hengam Urea/Ammonia Plant Iran 726,000,000 Execution

Hormoz Urea Ammonia Plant Iran 526,000,000 Planning

Ilam - Petrochemicals Complex (Olefins 13) Iran - Completed

Lavan Refinery Upgrade Iran - Execution

Lorestan Petrochemical Complex Iran - Execution

Persian Gulf Star Gas Condensate Refinery (PGSCR) Iran 2,600,000,000 Execution

Shiraz Third Ammonia and Urea Plant Iran - Execution

Atyrau Refinery Upgrade Kazakhstan 1,040,000,000 Execution

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Pavlodar Refinery Kazakhstan 40,000,000 Execution

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Moscow Refinery Upgrade Russia - Execution

Nizhegorodnefteorgsyntez Refinery Upgrade Russia 1,698,600,000 Execution

Nizhnekamsk Refinery and Petrochemicals Complex Russia 5,000,000,000 Execution

Omsk Refinery Upgrade Russia 5,000,000,000 Execution

Saratov Refinery Upgrade Russia 300,000,000 Execution

CEWAd Index


1 ACI Engineers 71

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3 Atomic Vacuum Company (Exports) Inside Cover I

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6 Chempro Expertise Pvt Ltd 69

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8 Chemtech World Expo 2015 61 & 62

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12 Eureka Forbes Ltd 27

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16 Gopani Product Systems Back Cover

17 Hi-Tech Apllicator 7

18 ImageGrafi x Engineering Services Pvt Ltd 79, 81,83, 85

19 Industry Automation & Control 2015 67

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21 Jasubhai Engineering Pvt Ltd 5

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23 Kirloskar Brothers Ltd Inside Cover II

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26 Mazda Ltd 89

28 Membrane Hitec 59

29 Mist Resonance Engg Pvt Ltd 73

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32 Rajdeep Engineering Systems (Pune) Pvt Ltd 71

33 Rasaii Flow Lines Pvt Ltd 57

34 Rathi Transpower Pvt LTd 77

35 Rittal India Pvt Ltd 9

36 Robinson Cargo & Logistics Pvt Ltd 13

37 Simulanis Solutions Pvt Ltd 75

38 Super Industrial Lining Pvt Ltd 3

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41 Time Technoplast Ltd 11

42 Toshniwal Instruments (Madras) Pvt Ltd 43

43 Tranter India Pvt Ltd 37

44 Uni Klinger Ltd 49

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46 UNP Polyvalves (India) Pvt Ltd 41

47 Warade PackTech Pvt Ltd 19

48 Watertech 67

Sr No Client’s Name Page No Sr No Client’s Name Page No


Book ShelfCEW

Author : Ernest E LudwigPrice : INR 20,377.50Pages : 712Publisher : Gulf Publishing

Applied Process Design for Chemical and Petrochemical Plants: Vol 3

Simultaneous Design and Control of Chemical PlantsAuthor : Luis Ricardez-SandovalPrice : INR 7,215.00Pages : 284Publisher : VDM Verlag

About the Book: The third edition is completely revised and updated throughout to make this standard reference more valuable than ever. It has been expanded by more than 200

pages to include the latest technological and process developments in heat transfer, refrigeration, compression and compression surge drums, and mechanical drivers. Like other volumes in this classic series, this one emphasises how to apply techniques of process design and interpret results into mechanical equipment details. The book focuses on the applied aspects of chemical engineering design to aid the design and/or project engineers in rating process requirements, specifying for purchasing purposes, and interpreting and selecting the mechanical equipment needed to satisfy the process functions.

About the Book : This book presents a set of methods proposed for the simultaneous design and control of chemical processes under the effect of external perturbations and parametric uncertainties. The proposed

methodologies borrow tools from robust control theory to test the process stability and to calculate bounds on the worst-case process output variability and theprocess constraints. Thus, the proposed methods avoid the solution of dynamic optimisation problems which are computationally expensive and even prohibitive for the design and control of processes with several process units. The proposed methods were applied to a mixing tank process and to the Tennessee Eastman process. Due to the robust approach, the final design obtained by these methods may be conservative. However, the computational demand required by the present approach is several orders of magnitude lower than that required by a dynamic optimisation-based methodology. Therefore, the present approach is a practical and computationally efficient tool that can be used for the simultaneous design and control of chemical plants.

Authors : Center for Chemical Process Safety (CCPS)Price : USD 230.85Pages : 480 [Hardcover]Publisher : Wiley-AIChE

Guidelines for Fire Protection in Chemical, Petrochemical, and Hydrocarbon Processing Facilities

About the Book: While there are many resources available on fire protection and prevention in chemical petrochemical and petroleum plants, this is the first book that pulls them all

together in one comprehensive resource. This book provides the tools to develop, implement, and integrate a fire protection programme into a company or facilityÊs Risk Management System.

Occupational Safety and Health Simplified for the Chemical Industry

Editor : Frank R. Spel lman, Revonna M. Bieber

Price : USD 75.05Pages : 204 [Paperback] Publisher : Springer

About the Book : Identifying safety risks inherent to the chemical industry, this new book identifies steps that safety managers can implement in their facilit ies to minimise the occurrence and severity of accidents.

Drawing together in one volume everything employers need to know about applicable OSHA (Occupational Safety and Health Administration) standards, this book provides expert, easy-to-read insight into interpreting OSHAÊs chemical manufacturing standards, training requirements, and Hazard Communication Standard.

Intended as a reference tool for use in the office and on the production floor, this book allows safety managers to quickly understand complicated OSHA requirements. It removes much of the confusion and stress from the compliance process by providing detailed examples of various required documents and processes.

For added convenience, the authors have included a sample Hazard Communication Program, a comprehensive and easy-to-use sample chemical hygiene plan, a sample chemical safety programme, and a sample chemical industry emergency response plan, all of which conform to OSHA standards.


CEWInterview

Rising Above the Competition

In an invterview with Mittravinda Ranjan , Vipul Shah, Chairman, CEO and Pres iden t , Dow Chemica l In te rna t iona l Pv t L td (Dow India) , opened up about the company’s progress and discussed its marketing strategy in Asia Pacific region, updated on company’s two major projects; the Sadara Chemical Complex and SCG JV, shared his thoughts on the shale gas play in USA and much more. Shah says that the company, leveraging on its joint ventures, is gearing itself up to “uti l ise the capacities by creating infrastructure and mapping the country for ideal tanks and warehouse locations, aligned to the customer needs.”


InterviewCEW

You talked about the DowÊs strong focus on Asia Pacific market in December 2012, when we spoke last. How has the organisation progressed since? The Asia-Pacific market is booming, and it is estimated that the region will account for a quarter of Dow’s revenues by 2020. India lies at the heart of this growth and is expected to be a major contributor to this slice of the pie.

Part of the reason for this growth is the breadth of our product portfolio – there is hardly any industrial sector where Dow products are not util ised. We continue to consolidate our existing and well-established portfolios in sectors such as automotive, packaging, coatings, etc. We are now also focusing on expanding businesses in underserved segments such as pharma, food, water, alternative energy. We can offer sustainable solutions for energy savings and efficiency improvements in each of these segments.

Our biggest challenge, when we spoke in 2012 was our footprint, which we have now resolved with planned investments in the region. Strategic investments l ike our JV with Siam Cement Group in Thailand and with Saudi Aramco – SADARA, are contributing to our growth in the region.

Our proprietary HPPO technology from the Thai JV bypasses chlorine and ensures a clean process. We have the Hydrogen Peroxide to Propylene Oxide (HPPO) plant along with Polyethylene (PE) which covers the wide range of application markets like packaging films, grocery sacks, trash bags, high-strength shipping sacks, plastic bottles, foamed building insulation, fire-retardant appliance housings and high-impact performance parts. In addition, our polyols plants will commence production next year.

The Sadara Chemical Complex investment was a strategic move to take competitive advantage of production in the Middle East (ME) and cater to the Asia Pacific market. The JV is an investment of USD 20 billion and the complex, which is now under construction, will be one of the world’s largest integrated chemical facilities ever, built in a single phase.

The combined production capacity of this complex is around three mil l ion tonnes per year and 60 per cent of this production is targeted for the Asia Pacif ic market.

I f you look at the big picture, the growth for Asia Pacif ic becomes very imminent. Dow had the customer reach, off ices and relationships across major countries in the region. Now, we also have a strategic posit ioning from a competit ive stand-point and a dedicated supply of products coming in. This is the biggest game changer for us at Asia Pacif ic and the global level.

Tell us about the Asia Pacific marketing strategy. From the Sadara perspective, India and China will continue to be the largest targeted markets for us as far as the petrochemicals business is concerned. We have grown significantly in Indonesia, Thailand, Vietnam, Philippines and Malaysia. Dow has presence in Australia and New Zealand as well. And we are confident about the growth in these regions. Post the Rohm & Haas acquisition, we have expanded our specialty chemicals portfolio and are looking at the countries in the electronics belt - Korea, Japan, Taiwan, Hong Kong and China. We are looking forward to having local presence in Myanmar and Bangladesh, which are the new frontiers for us. Having said that, we are currently selling in both the countries and are looking at our setting up locally for

expanding our footprint in the near future. From a strategy standpoint, we tend to focus on the industry with the idea to grow the market share, by reaching out to a wider base.

How do the two major projects - Sadara Chemical Complex and SCG JV put Dow in a stronger position? The Sadara Chemical Complex and the SCG JV are big enablers for Dow in India. Both the projects are unique in nature and put us in a competitive position in the Asia Pacific market.

Since Thailand does not have the raw material advantage, the idea was to build a competit ive posit ion through this consortium cracker in free trading block and ASEAN, in order to gain access to the South East Asian market, at zero duty.

On the other hand, the Sadara Chemical Company (Sadara), houses 26 different plants and some of the units are mega projects in i tself. We wil l have PE trains including LDPE, elastomer trains, PU, MDI/TDI, amines and glycol ethers – the ful l building block range - which is a necessity for the growth of countries l ike India.

Uti l ising many of Dow’s industry leading technologies, the complex wil l possess cost-advantaged f lexible cracking capabil i t ies and produce over 3 mil l ion metric tonnes of high value-added chemical products and performance plastics annually. The JV complex, along with the adjacent ‘value parks’,

One of Dow’s goals has been differentiating the company from itscompetition by raising the bar of market standards, through constantinnovation. We closely observe the market segments and offercustomised solutions through our product portfolio, which makes adifference to the end-user segments.

Facts on Sadara Chemical Complex

Completed in a record time of 4 years

Dow - Saudi Aramco Joint Venture

USD 20 billion Investment

26 different plants

3 MMTPA of high value added chemical products and performance plastics

Largest target markets - India and China in Asia Pacific


CEWInterview

wil l capital ise on rapidly growing local, regional, and international markets in energy, transportation, infrastructure and consumer products.

These two JVs should also help in the availability of feedstock in India. We are gearing ourselves up to util ise the capacities by creating infrastructure and mapping the country for ideal tanks and warehouse locations, aligned to the customer needs.

How do you plan to gain the edge amongst the stiff international competition offered by other MNCs and large scale indigenous petrochemical manufacturers in India as many of the public & private sector refining companies are scaling up and expanding downstream value chains? One of Dow’s goals has been differentiating the company from its competit ion by raising the bar of market standards, through constant innovation. We closely observe the market segments and offer customised solutions through our product portfol io, which makes a difference to the end-user segments.

To give an example of this, we brought in memory retention elastomeric materials in PU and helped take the market to a different level. Even in packaging, the grades we supply from the PE perspective are not available locally. Our products have elevated the packaging industry’s capabilities, growing markets with it and we continue to be in the top end of the segment. Packaging is a classic example where the pie has grown exponentially and we see huge potential going forward.

Usually, before companies start selling-up, they are in a sell-out mode which may give short-term competition; but in the long term, the knowledge of the application segments and aligning it to the current and potential needs of the market is critical.

Our well thought-out and well-posit ioned assets wil l continue to provide the much needed competit ive edge, which al lows

us to continue to do value addit ion for the customers. We focus on innovating for local solutions, bringing about those l i t t le tweaks in our product or application portfol io that cater to the needs of the market. We believe in staying close to our customers and innovating locally, which reduces the development cycle of end-products.

How do you see the impact of shale gas play in the USA on global and particularly on the ME where Dow has made massive investment in Sadara? I can talk from a Dow stand-point. We are the first ones to have announced an investment of USD 6 billion in the US-Gulf in cracker to produce elastomers in the Ethylene Propylene Diene Monomer (EPDM).

The production from this project wil l primari ly cater to the domestic demand, since shipping the product over large distances would not be a competit ive option. So, while this particular investment wil l cater to the American markets, the Sadara complex wil l supply to the Asia-Pacif ic market, the Middle East zone, Eastern Europe and African.

At some point of t ime in the near future, naphtha pricing wil l play a role, since shale gas prices cannot be dissociated from the naphtha gas prices. In my view, i t is more of wait-and-watch situation on how the shale gas wil l impact the global market.

What are the future plans of Dow in specialty chemicals in India? The targeted segments for speciality chemicals in India are home and personal care, food, pharma, water, construction chemicals, textiles and coatings. In the oil & gas segment, we are at a cutting-edge in this

personal care, food, pharma, water, construction chemicals, textiles and coatings. In the oil & gas segment, we are at a cutting-edge in this space and contribute to formulations and simulations. Another area of focus, where we have global expertise and competitiveness, is microbial-control.

space and contribute to formulations and simulations.

Another area of focus, where we have global expertise and competitiveness, is microbial-control. Of the nine labs located world over, one is in Kalwa, Mumbai. The capability of this lab is state-of-the-art and caters not just to the Indian market but to the global market as well.

Almost every global capabil i ty of Dow has been mirrored in India and we are nearly a bi l l ion dollar enterprise with 900 employees and two global business centres, today.

How do you see the Indian market now post the announcement of budget? Personally, I feel the budget is a step in the right direction and reflects a lot of optimism for the industry. If you look at the announcement of 100 smart cit ies or satel l i te cit ies, you can see that this wil l correspond to a huge demand in the special i ty chemicals sector. The government has started focusing on energy conservation and it would be interesting to see (as an industry) how we can contribute. The government’s strategic thrust on infrastructure, ports, renewable energy and agriculture wil l support the growth of the manufacturing sector which wil l in turn propel the chemical industry into the next growth trajectory. From the long term perspective, i t is r ight on the spot whereas the quantum of reforms can be argued over.

8 • December 2013 Chemical Engineering World

Final Ad template amol.indd 8 20-01-2014 19:44:27

R.N.I. No. 11403/1966 Date of Publication: 29th of every month. Postal Registration No: MH/MR/SOUTH-125/2012-14. Posted at Patrika Channel Sorting Offi ce, Mumbai 400001, on 29th & 30th of every month. Total Page No.: 102

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