July '14

  `` 

CHEMICAL ENGINEERING WORLD

EPC SPECIAL

JULY 2014 VOL. 49 ISSUE 7 Mumbai ` 150

ChemTECH World Expo 2015 28-31 January 2015, Mumbai,India

Chemical Engineering World

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CEW Contents CHEMICAL ENGINEERING WORLD RNI REGISTRATION NO. 11403/66 Chairman Publisher & Printer Chief Executive Officer

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Jasu Shah Maulik Jasubhai Shah Hemant Shetty Mittravinda Ranjan (mittra_ranjan@jasubhai.com) D P Misra, N G Ashar, Prof. M C Dwivedi P V Satyanarayana, Dr S R Srinivasan, R B Darji, R P Sharma Bernard Rapose (bernard_rapose@jasubhai.com) Harshal Y Desai (harshal_desai@jasubhai.com) Arun Parab, Amol Patkar Abhijeet Mirashi Dilip Parab Brenda Fernandes V Raj Misquitta (Head), Arun Madye

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4 • July 2014

VOL. 49 | NO.7 | JULY 2014 | MUMBAI | ` 150 NEWS ► Industry News / 8 Technology 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 ► / 80 EVENTS ► / 90 PROJECT UPDATE ► /91 BACK OF BOOK ► Ad Index / 95 Book Shelf / 96 Interview/ 97 Rising Above the Competition – Vipul Shah, Chairman, CEO & President, Dow Chemical International Pvt Ltd Cover page image: TÜV SÜD Chemie Service GmbH 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.

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Editor: Ms Mittravinda Ranjan, 26, Maker Chamber VI, Nariman Point, Mumbai 400 021.

Chemical Engineering World

Chemical Engineering World

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

Plastic Processing Units could Get Boost through Refinery Expansions

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

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 the Knowledge and Strategy Paper by FICCI with Tata Strategic Management.

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 facilities like a blending plant and interconnection with the Indian Oil Cor poration (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.

India has Great Decorative Paints

Potential

for

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.

8 • July 2014

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 further 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.

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 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 at USD 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.

Erratum The article ă „Corrosion ă 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.

Chemical Engineering World

CEW Industry News EIL Gets PMC Services Contract for BFCLÊs Fertiliser Complex

Government Says No Proposal for Urea Price Hike

New Delhi, India: Brass Fer tilizer Company Limited (BFCL), a Nigerian Company has entrusted Engineers India Limited (EIL) for Project Management Consultancy (PMC) ser vices for its upcoming integrated green field gas based Fer tiliser Complex compr ising of urea/methanol plant at Brass Island, Nigeria. 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.

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 nutrients 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 imports. To achieve self-sufficiency, the government has set plans in motion for acquisition of assets in various countries like Canada and Russia. The country has established joint ventures with Oman, Morocco, Senegal and Jordon in the fertiliser industry. Kumar emphasised the importance of shifting to organic manure and increasing awareness about using micro nutrients among farmers. Fertiliser plants in a number of states will get a boost through the Haldia-Jagdishpur GAIL gas pipeline.

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

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

Mumbai, India: Ananth Kumar, Minister of Chemicals and Fer tilisers said that India could rank among the top 5 countries 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.

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.

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 costeffective. He went on to add that there are specially delineated PCPIRs being set up by the Government in Dahej, Vishakhapatanam & Kakinada, Paradip and Cuddalore & Nagapattinam. 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.

New Innovation Centre Launched by Tata Chemicals Pune, India: Cyrus Mistry, Chairman, Tata Chemicals, inaugurated its state-of-the-art 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, agri and chemistr y solutions. It would also 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 interdisciplinary innovation centre can play a valuable role in this endeavour.‰ 10 • July 2014

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 rich tradition of handlooms of Varanasi.

Rolta Awarded Multi-million Dollar Engineering Systems Project 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-million 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.

Chemical Engineering World

CEW Industry News Mobile Emissions Catalysts Production Plant Inaugurated by BASF Ludwigshafen, Germany: BASF opened its 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 manufacturing facility ă BASFÊs largest emissions catalysts plant in Europe ă began in late 2012, suppor ted by an initial Euro 90 million investment. The plant began production trials in April 2014, and last month star ted up two emissions catalysts manufacturing lines, with an initial employee base of 100. Additional expansions will follow, raising the total investment for the plant to approximately Euro 150 million. Once all ten planned light duty and heavy duty catalysts production lines are operating at full 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 light duty gasoline vehicles and light and heavy duty diesel vehicles to meet more stringent Euro 6/VI emissions regulations. Among the advanced technologies that will be produced at the Sroda Slaska facility are Selective Catalytic Reduction (SCR) systems, cutting-edge SCR on Filter (SCRoF) solutions as well as PremAir ăbranded ozone destruction catalysts for automotive applications.

M a r i e Te c h 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 l y : 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 w e s t Fe r t i l i z e r Corporation (MFC) which will form the basis for negotiating and finalising agreements towards a strategic collaboration with respect to a large scale, greenfield fer tiliser complex of MFC located in Mount Ver non, Posey County, Indiana (United States).

The value of EPC activities to be executed by MET or its subsidiaries shall be approximately USD 1.6 billion. FGP has already secured USD 1.259 billion of tax exempt financing 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 granulation 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, nitric acid plant of 1,530 mtpd based on Borealis/GPN technology, and all associated off-sites and utilities. 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.

12 • July 2014

Yuhuang Chemical Plans to Build Methanol Plant 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.

Edeniq & Global Bio-chem Partner to Develop Chemical from Corn Stover Visalia, USA: Edeniq Inc has signed a letter of intent with Global Bio-chem Technology Group Company Limited to develop and commercialise processes to convert corn stover to industrial 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.‰

HPS Plans on Doubling MDI Splitting Capacity Shanghai, China: Huntsman and Shanghai Chlor-Alkali 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.

Chemical Engineering World

CEW Industry News Operations at EvonikÊs New Hydrogen Peroxide Plant Commence Essen, Germany: Evonik Industr ies for mally 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 metric tonnes per annum.

Evonik will supply H 2 O 2 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 refrigeration 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 mainly as a bleaching agent by the textile and pulp industr y. The HPPO process now allows this eco-friendly 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.

BIC and EU to Undertake JV of �Euro 3.7 billion Brussels, Belgium: The European Union and the Bio-based Industries Consor tium (BIC) officially launched the Bio-based Industries Joint Under taking (BBI) and its first Call for Proposals.

The BBI is a new public-pr ivate par tnership dedicated to breaking EuropeÊs dependence on fossil fuels by conver ting biomass and wastes into greener ever yday products.

Innovative technologies and advanced biorefineries 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 v e w h i c h i s fo c u s e d o n deployment and the creation of new mar kets for biobased products such as food, feed, chemicals, mater ials and fuels.

M a r c e l W u 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 Chairman, Bio-based Industries Consortium said, „As the private par tner in this new endeavour, we are thrilled about having been able to translate the ambitions of multiple sectors into one coherent vision; and today, into concrete actions that place sustainability at the hear t of all business activities.‰ 14 • July 2014

MWSPC Signs a Deal for $ 5 Billion Loan R i ya d h , S a u d i A r a b i a : S a u d i A r a b i a n M i n i n g C o m p a ny (MaÊaden), announced that its affiliate MaÊaden WaÊad Al-Shamal Phosphate Company (MWSPC), has signed financing facilities for long term project finance 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 participated in the financing in support of Korean contractors participating in the construction of the project. Funding has also been obtained from the Islamic Development Bank.

The financing facilities will be utilised 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 fertiliser facilities in the world, it will 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 billion and production at the new facility is expected to commence in late 2016.

FerroÊs Specialty Plastics Assets Completely Acquired by A. Schulman 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, transportation, construction, appliances and agriculture. The acquisition is expected to be accretive to adjusted earnings per share. A. Schulman anticipates achieving approximately USD 5.5 million in synergies within 12 to 18 months following the close of the transaction, driven primarily by sourcing activities and plant efficiency actions.

Global demand for polyethylene to grow at

5% in 2012-17 Chemical Engineering World

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Chemical Products Finder | November 2013 | 59

CEW Industry News DIC to Build Its 1st PPS Compounds Plant Tokyo, Japan: DIC Corporation has resolved to build its first polyphenylene sulfide (PPS) compounds plant in the PeopleÊs Republic of China (PRC) in the city of Zhangjiagang, Jiangsu Province. The new plant, total investment in which will be approximately yen 1.3 billion (yuan 77.3 million), will be located within the site occupied by wholly owned subsidiary DIC Zhangjiagang Chemicals Co Ltd which produces synthetic resins, among others. Annual production capacity will be 6,000 tonnes. The construction is expected to begin as soon as official building permits are secured and would be completed by the end of 2015.

While the global demand for PPS compounds continues to grow at 6-8 per cent annually, annual growth in demand in the PRC, which leads the world in automobile production, is estimated at well above 10 per cent. Market expansion continues to encourage leading global automobile components manufacturers to set up operations in the PRC, while the need to reduce foreign exchange and logistics risks among others has spurred increased interest in local procurement of PPS compounds from such manufacturers. Building a PPS compounds plant in the PRC will thus position the company to respond to the needs of customers thereby facilitating its full-scale entry into the local PPS compounds market and to expand its sales of these products.

PPG to Acquire Consorcio Comex at $ 2.3 billion Pittsburg, USA: PPG Industr ies has reached a definitive 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 billion 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 stores that are independently owned and operated by more than 700 concessionaires. Comex also sells its products through regional retailers, wholesalers and direct sales to customers. The company has approximately 3,900 employees, eight manufacturing facilities and six distribution centers, and had sales of approximately USD 1 billion in 2013. Comex is a privately-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 b u s i n e s s w i t h a long heritage of excellent customer ser vice and leading, well-recognised regional brands. The acquisition is ver y complementar y to PPG as it adds a leading a r c h i t e c t u r a l c o a t i n g s b u s i n e s s i n M ex i c o a n d C e n t r a l Amer ica, a region where we have negligible architectural 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. 16 • July 2014

Foster Wheeler Bags EPCM Contract from Owens Corning Z u g , S w i t z e r l a n d : 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.

Kopper Plans for a Naphthalene Plant Pittsburgh, USA: Koppers Holdings Inc will be applying for various environmental permits as it investigates the possibility of consolidating its North American tar distillation 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 consolidating our tar distillation operations, 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 North America would provide Koppers with its first full-service plant that would include coal tar distillation as well as downstream distillate 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.‰ T h e c o m p a ny e m p h a s i s e d t h a t a ny d e c i s i o n c o n c e r n i n g this matter was tentative and would only become finalised after fur ther exploration and discussion with all potentially affected employees and union representatives. If a decision i s a c t u a l l y m a d e t o m o ve fo r wa r d , i t i s p o s s i bl e t h a t a n ew n a p h t h a l e n e u n i t c o u l d b e o p e r a t i o n a l a t S t i ck n ey in early 2016.

Chemical Engineering World

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Technology News UP Govt Confers Young Scientist Award on Dr Surya P Singh

European Waters More Polluted than Earlier Estimation

Hyderabad, India: The UP Gover nment has given the honourable Young Scientist Award for the year 2014 to Dr Sur ya Prakash Singh for his great contr ibution in the field of technology and science.

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 state of European aquatic ecosystems is presumably even worse. Together with their French and Swiss fellow researchers the scientists from Landau and Leipzig have investigated the exceedance of risk thresholds in the river basin of major stream networks, such as the Danube and the Rhine River at a pan-European level. For the first time, the extent to which risk thresholds were exceeded for three groups of organisms, namely fish, inver tebrates and algae / primary producers, was estimated for these major river basins.

Log on to http://www.ufz.de/ to read more.

Singh is a scientist in Hyderabad, working at the Centre for Science and Industrial 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 with the Young Scientist award for his great contr ibution in the field of chemical sciences and solar energy research. He was also awarded the NASI-Young Scientist Platinum Jubilee Award in 2012 for his contribution in this field. In ear ly 2013, he was elected as the Associate Fellow of the Andhra Pradesh Akademi of Sciences.

Liquid Crystals Enhance Efficiency as Lubricant Freiburg, Germany: Thanks to a new lubricant, small gears can run with virtually 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; liquid crystalline 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 ă 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.

18 • July 2014

LLNL Researched Manufacturing 3D Metal Parts Efficiently 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 simulations and experiments, to identify optimal parameters to print 3D high-density metal par ts. To know more about the research log on to https://www.llnl.gov/ Chemical Engineering World

CEW

Technology News One of its Kind GHG Metre Developed Moscow, Russia: Moscow Institute of Physics and TechnologyÊs (MIPT) Laboratory for the Spectroscopy of Planetary Atmospheres has come up with a high-resolution metre 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/

Eucalyptus: a Rich Source for Fuel and Fibre Walnut Creek, USA: EucalyptusÊ prodigious growth habit has caught the eyes of researchers seeking to harness and improve upon its potential for enhancing sustainable biofuels and biomaterials production, and provide a stable year-round source of biomass that doesnÊt compete with food crops.

The international effort 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.

There is more CO 2 in the atmosphere than at any point in the last 8,00,000 years .

22 • July 2014

Know Chemical Composition of Liquids with Chemical Sensor on a Chip 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 wellknown 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/

New Packaging Technology by Dow and Ampac Midland, USA: Dow Packaging and Specialty Plastics, a leader in material science for the packaging industr y, announced that flexible packaging conver ter, Ampac, is now a licensee of PacXpert Packaging Technology and is authorized to sell packages in North America. PacXpert Technology enables the conversion of large rigid plastic containers to easy-to-carry, flexible packaging options. Dow trademarked the technology as PacXpert after acquiring the global license to the innovative Smart Bottle technology on which PacXpert is founded.

The lightweight packaging design offers a fitment closure and integrated ergonomic dual handles, enabling precision pouring, easy reclosing and convenient carrying. The functional performance of the product is even more impressive with visuallytransparent 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 North 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.

Chemical Engineering World

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CEW Marketing Initiative SABICÊs Sustanability Report Indicates Progress

Aker Commences Work at Upgraded Facility

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.

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 will improve real-time coordination with Aker SolutionsÊ offices across the world.

Among the highlights of the 2013 report are, SABICÊs approach to developing the highest standards of ethics, integrity, 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 risks and opportunities considered most important for the company and its stakeholders; Linkage of SABICÊs sustainability strategy to its 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 portfolio of products and their impact on the sustainability needs of key markets; Progress toward our environmental footprint goals and a new metric around our use of recovered CO 2 as a feedstock; Major improvements in contractor safety; The vital contribution of employee volunteers to our Corporate Social Responsibility; Proactive Product Safety processes that seek to advance the science of our products; and application of sustainability across the critical supply chain processes of our business and the benefits achieved.

AgilentÊs Triple Quadrupole Ideal for Quantification New Delhi, India: Agilent Technologies Inc introduced a new flagship triple quadrupole mass spectrometer for LC/MS applications requiring the highest sensitivity and robustness.

The Agilent 6495 LC/MS Triple Quadrupole system is fully 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 highperformance instrument that supports 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 rigorous 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.

24 • July 2014

Glatt Engineering Opens New Office 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 biopharma 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.

Swissi Process Safety to Work Under TÜV SÜD Banner Munich, Germany: To highlight its affiliation 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.

Chemical Engineering World

CEW Marketing Initiative Saltidin Most Effective against Mosquitoes and Ticks

Bayer Pearl Sets-up New Headquar ters for Expansion

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 Saltidin from Saltigo GmbH. The Saltigo active ingredient Saltidin ă in chemical terms 1-(1-methylpropoxycarbonyl)-2-(-2hydroxyethyl)piperidine or simply icaridin ă is not an insecticide.

It simply repels insects by acting on their odorant receptors, disabling their ability to recognise humans as blood donors.

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 active 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 serious diseases such as Lyme and tick-borne encephalitis.

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.

Lanxess Successfully Tests Membrane Elements for Desalination 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 specially developed for seawater desalination.

Alexander Scheffler, Director - Membrane Business, LANXESS Liquid Purification Technologies business, says, „Energy-efficient, eco-friendly desalination technologies like 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 ă 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.

26 • July 2014

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

Such challenges can be met with polyurethane rigid foam, for example, which thanks to its excellent thermal insulation proper ties makes an impor tant contribution to conservation of scarce natural resources. Polyurethane materials also make it possible to design cars that weigh less and are therefore more fuel-efficient.

Holmatro now Offers Industrial Solutions 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 further than just developing and manufacturing standard hydraulic e q u i p m e n t . T h e d e m a n d fo r c u s t o m e r - s p e c i f i c s o l u t i o n s has increased enor mously over the years. We now have a complete team of engineers and experts, dedicated to finding the right solution for various different challenges 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 vertical movements of heavy loads with accurate control, nothing is impossible for the Holmatro Industrial Solutions team.

C o o p e ra t i o n w i t h t h e c u s t o m e r, e a s e o f u s e a n d s a fe t y are recurring star ting points for the development of these ÂcustomisedÊ 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.

Chemical Engineering World

CEW News Features

India Needs Corrosion Free Infrastructure to Ensure Human Safety: Suri India 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.

N

ot 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.

Yatinder Suri Country Head Outokumpu India Pvt Ltd 28 • July 2014

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

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.

The Duplex story started to unfold in India after Outokumpu was set up in late 2006. At the time, there was no awareness. In 2008, it started an aggressive campaign with the support from OutokumpuÊs R&D wing and with visibly positive signs of acceptance the company witnessed remarkable demand in oil & gas, chemical processing, desalination, rail and road bridges and also, in the railways, he adds. The other high-end grades gaining acceptance are super austenitic 904L and 253MA for high temperature areas. Even stabilised ferritics have gained immensely for ABC segments.

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 ă to understand ÂDuplex SteelÊ a material that is getting a push in the industry.

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...”

Chemical Engineering World

CEW News Features

Only corrosion free infrastructure can ensure human safety and add cost advantages through lowest life cycle cost.

Ensuring Human Safety Despite the fact that the consumption of innovative material in Indian industry has increased, it is still 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.

30 • July 2014

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 willing 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 ă Outokumpu and Inoxum ă 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.

- Harshal Y Desai Chemical Engineering World

eatu es CEW Features

Raising the Bar of Indian EPC

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PC industry could not have asked for anything more after the announcement of investments to the tune of ` 45 lakh crore during the 12 th 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 IndiaĂ&#x160;s manufacturing sector. But even after two years into the 12 th 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 further 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 start 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

34 â&#x20AC;˘ July 2014

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CEW Features Lead Feature

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

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nder 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 Story K Venkatramanan shares his views on these development and states, “Middle East’s hydrocarbon market is much

36 • July 2014

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

“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 initial period...”

Chemical Engineering World

CEW Features 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 onsite activities and practical hazards prevailing at construction sites.

Objectives To 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 38 • July 2014

Features CEW 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 it is to work in the Commonwealth of Independent States (CIS) and South East Asian countries, Venkatramanan says that each country has got its 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, especially if you are into construction, you need to involve local people to some extent. And actually it 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 time, 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 right away and is concentrating on the Middle East and other markets like South Asia and Africa. However, L&T is very much looking at supplying heavy engineering products to the US market which is

gearing up for new investments and riding high on the shale gas sentiment.

It will take some time for the company to build its 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 2014 He 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.”

Chemical Engineering World

CEW Features Lead Feature

Breaking Boundaries, Leaping Beyond 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.

T

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.”

o 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 subcontractor 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.

“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 Market When 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 welldeveloped 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.”

In 2011, EPL was identified as the 2 nd 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.

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,

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

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

40 • July 2014

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.

Chemical Engineering World

Chemical Products Finder | November 2013 | 57

CEW Features Key projects executed by EPL in India and Abroad 7 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) 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 Projects When 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 42 • July 2014

Features CEW 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 EPL EPL 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 Decision The 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 Projects Every 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 India There 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.

Chemical Engineering World

CEW Features Lead Feature

India is yet to Mature as ‘the EPC Market’ 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.

E

ach 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, citing 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 competitive over the last few years. There are, at least, 6-8 major players like ADNOC, Qatar Petroleum, Saudi Aramco and few others in the region, who offer more opportunities compared to India where you predominantly find only two offshore oil & gas clients.”

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

46 • July 2014

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 positive 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 find it much easier to enter the market through offshore projects where the transferability of international skillset 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 oil & gas space, it becomes relatively easier to build the onshore EPC

capability. Leighton entered India on a bandwagon of offshore EPC contracting but gradually leveraged on the positive client 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 time lines for implementation which the contractors are bound to adhere to contractually and ensure timely commissioning of the projects.

With experience, however, contractors are forced to build in contingencies, premiums and commercial management strategies in their EPC bids to reduce the execution risks 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 players find it much easier to enter the market through offshore projects where the transferability of international skillset is lot easier as compared to executing onshore projects.”

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CEW Features

Features CEW

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 and EPC –LSTK contracts.

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.

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

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.

48 • July 2014

EPC contracts are not new to the Indian market but the contracts are still 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 still 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 significant 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 oil & 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.

Chemical Engineering World

CEW Features Forward Focus

Advantages of Using FRP Corrosion 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.

F

ibreglass 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 Resins Almost 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 FRP The 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.

E Glass

ECR Glass

C Glass

AR Glass

SiO2

54-55

59-60

55-57

59-60

R Srinivasan

Al2O3

14-15

14-15

3-5

3-5

Technical Committee NACE International Gateway India Section

CaO

19-20

22-23

8-9

8-9

MgO

Traces

2-3

Traces

Traces

C V Manian, PhD

Na2O

0.6

0.6

13-14

12-13

K 2O

Traces

Traces

Traces

Traces

B 2O 3

6-8

Nil

3-5

Nil

Technical Committee NACE International Gateway India Section

Samir Degan, PhD Technical Committee NACE International Gateway India Section samirdegan@gmail.com 50 • July 2014

F2

0.4

Nil

Nil

Nil

Fe2O3

0.3

0.3

0.3

0.3

ZrO2

Nil

Nil

Nil

16-18

Table 1: Details on different types of glass

Chemical Engineering World

Features CEW Properties

FRP ă Polyester piping GRP ă Epoxy Piping

Filament winding

Process

60 - 70

Glass

30 - 40

Resin

NA

Filler

Resin

Polyester/vinylester

Epoxy

Pultrusion process

70 - 75

25 - 30

NA

Temperature

Up to 65-90 C

Up to 150 o C

Hand lay up / Spray up

33 - 40

67 - 60

NA

Pressure

Press moulding

atm to 40 barg/full atm to 200 barg/full v ac uum vacuum

Service

Moderately Corrosive Highly fluids fluids

30

30

40

Transparent roofing sheet 30

70

NA

Hand lay up

60

NA

40

Table 2: Indicative ratio of glass to resin

• •

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 Resistance Corrosion 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 Advantage The 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.

Chemical Engineering World

o

Corrosive

Table 3: Typical FRP/GRP service conditions (Ref: www.nace-jubail.or/meetings/imiantit.pdf)

•

• •

•

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; (ii) 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 installation.

Conclusions FRP 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.

July 2014 • 51

CEW Features Guest Column

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 Officer, 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 12 th 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 still 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 52 • July 2014

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.

2.

3.

4.

5.

Pre-award stage Pre-planning stage Project planning and design Project execution and monitoring Project closure and handover

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

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

Major Stages in ProjectÊs Life Cycle

Project execution and monitoring

Pre-planning Stage

Project planning and design

Chemical Engineering World

Chemical Engineering World

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December 2013 â&#x20AC;˘ 117

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CEW Features 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 Ć 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. Ć

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.

Ć 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 Ć 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 ă 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.

44 MW Cogeneration plant at Warana, Maharashtra built on EPC basis by Walchandnagar Industries

54 • July 2014

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. Ć 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 Ć 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. Ć 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 coordination by project managers.

Project Closure and Handover At 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.

Chemical Engineering World

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CEW Features Guest Column

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 significant 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.

I

n 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).

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 56 • July 2014

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!

Ć

Ć Is it so simple? Apparently not! This model brings its own hardships which may be the following: Ć 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

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 Chemical Engineering World

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

Ć

Ć

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

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!

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.

Case 1: Model ă CCIP Client 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.

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

Result ă 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

58 • July 2014

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 Ready Then 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.

Conclusion To 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.

Chemical Engineering World

CEW Features Guest Column

EPC Model in India: Bottlenecks & Benefits Projects, today, are getting increasingly complex; bottlenecks caused by time overrun or lack of finance 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.

E

very 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.

60 • July 2014

EPC has emerged as a preferred form of contracting for the clients 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 timeframe. It involves a number of factors ă internal and external ă which will have an impact on the project.

While the political 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, it would take care of many likely 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

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 ă 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 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.

Chemical Engineering World

Features CEW 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. ďż˝ 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 contractorĂ&#x160;s 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 still 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.

Chemical Engineering World

July 2014 â&#x20AC;˘ 63

CEW Features Technical Article

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 risks 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 64 • July 2014

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 ă the „Seveso III Directive‰, also referred to as the Major Accident Directive ă will come into force in 2015.

Discussion of the Qualification 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 filling 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

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

For this purpose, the method assigns a specified function to every process step that is assessed and uses a set of guide words (eg, ÂnoÊ, ÂlessÊ, ÂmoreÊ, ÂearlierÊ, ÂlaterÊ etc) to systematically check the relevant parameters of this target function (eg, temperature, pressure etc.) for resulting deviations.

Special lists are available that can be adjusted to the specific terms of reference and assist with the selection of suitable parameters and guide words. The guide-word method thus supports the experts in their qualified 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).

Chemical Engineering World

CEW Features Approaches to Risk Assessment Qualitative Risk Assessment

Quantitative Risk Assessment

Probabilistic Risk Assessment

Decisions based on - empirical evidence - technical expertise - intuition

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

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

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

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

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 identified, the team goes on to assess the causes and possible consequences of a deviation and subsequently identifies possible preventive and/or corrective actions.

The recorded brainstorming and its results are fully documented in a report.

Technological Progress Makes New Demands The HAZOP method has reliably identified and minimised risks for decades. It has contributed considerably to improving the operation of technical facilities 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.

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 Approach According 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

Accidents in Process Industry

However, the conventional HAZOP study also has its limits. Against the backdrop of breath-taking technological advancements in the chemical industry, plant owners and 66 • July 2014

Chemical Engineering World

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CEW Features 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.

28-31 January 2015, Mumbai, India

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 Requirements The 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. TĂ&#x153;V SĂ&#x153;D 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.

AuthorĂ&#x160;s Details Rainer Semmler (A notified expert under Art. 29a BImSchG) TĂ&#x153;V SĂ&#x153;D Chemie Service GmbH Email: rainer.semmler@tuev-sued.de 68 â&#x20AC;˘ July 2014

Chemical Engineering World

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Boosting Bottom Line with Cloud Solutions 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

C

loud computing, big data management, analytics and several such innovative solutions have changed business dynamics for various industries, however, as far as chemical industry is concerned, the adoption of cloud computing solutions has been slower. „Compared to the IT industry, the growth and the adoption of the cloud solutions has been slower,‰ says Abhijit Potnis, Director Technology Solutions - 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 line, the trend is changing. Potnis explains that chemical companies need integrated content value chains because managing information efficiently enables safe, low-cost operations, streamlined compliance, and value-added products and services that boost the bottom line. „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 opportunities.

In such a scenario, big data is often talked about for its promise - to 70 • July 2014

address a multitude of business problems and create a multitude of business opportunities.‰ The Adoption is Gaining the Pace But there are still a large number of chemical companies that are reluctant to migrate all of their data, application and system to cloud as the data and application are very ÂsensitiveÊ 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 if they are to get the greatest cost savings, it will 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, will 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 shifting their focus to emerging economies like 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 find 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

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 shifting their focus to emerging economies like India for future growth.

Chemical Engineering World

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EMC

ProtectPoint,

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Potnis specifies, „As far as the statistics are concerned there is no concrete figure that can be quoted but, by 2020, analysts estimate that we will have 300 times 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 Issue Potnis also shares his views on Âcyber securityÊ and informs that it has been a troublesome issue for the industry for it may possess a serious threat to an organisation in case the data is hacked or tempered with. „Our cyber security solution like RSA Archer leads the market in enterprise governance, risk, and compliance (GRC) as chosen by one in two of the Fortune 100,‰ he claims.

A comprehensive knowledge-rich magazine that disseminates information on all segments of Chemical Process Industry

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 Consulting has the expertise, methodologies and frameworks to support its clients along the entire energy value chain.

Potnis reveals, „In oil and gas as well as utilities, we have experienced consultants available regardless of your location, including an expanded energy consulting presence in the Middle East, Russia, and surrounding countries. We have expertise in a wide variety of technologies for creating and deploying energy-specific solutions and applications that address your restructuring, deregulation, and compliance challenges.‰ EMC Consulting 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 centralised data centres and to ensure compliance with changing regulations.

Chemical Products Finder Truly a Product Finder for innovative and newly launched product information in more than 100 sections of Chemical Process Industry on single platter

CEW/CPF Spotlight ?

Interviews with Industry Stalwarts ?

Application Oriented Technical Articles by Practicing Professionals ?

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Current Indian & ?

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Latest Book Reviews ?

Event Alerts and Many More…… ?

JASUBHAI MEDIA PVT. LTD.

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E-mail: industrialmags@jasubhai.com Website: www.chemtech-online.com AN ISO 9001:2008 CERTIFIED COMPANY

Chemical Engineering World

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Electromech Engineering Enterprises (Third Party Inspection Agency)

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e 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.

Reactors, Agitators, Pressure Vessels, Heat Exchangers, Blenders, Valves, Blower, Centrifuges, Centrifugal Pumps, Glass lined Reactor, FRP Tanks, Sparkler Filters, Tray Dryer, PP & PVDF lined fittings, Conveyor, ANFD, FBD, Nauta mixer, Double Cone Dryer (RCVD), Blender, Co-mill, Pipe & Tube inspection, Pipe fittings, 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 have served more than 100 clients; some of them are listed below 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 LIMITED 8) 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 MANAGEMENT 16) DOWCHEMICAL INTL PVT.LTD. 17) DCW LIMITED. 18) DR. REDDYÊS LABOARTORIES LTD. 19) DUFON LABORATORIES LIMITED. 20) DYKE ENGINEERING SERVICES 21) DEEPAK NITRITE LIMITED 22) 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. 74 • July 2014

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 & CHEMICALS 33) 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 LIMITED 49) MATRIX LABORATORIES LIMITED. 50) MERIND LIMITED. 51) METROPOLITAN EXIMCHEM PVT. LTD.

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.

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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 clients like SRF Limited, Dr. ReddyÊs Laboratories Limited, GlenmarkGenerics 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 Enterprises Shop No. 22, Koyna Co-Operative Hsg.society Shantivan, Borivali (East), Mumbai 400066 Tel: 022 2897 5275 Mobile: 9820047858 Email:info@electromechengineering.com; electromech.engg.entp@gmail.com Website: www.electromechengineering.com Chemical Engineering World

Jasubhai Media Pvt. Ltd.

For Details Contact

Jasubhai Media Pvt. Ltd. Taj Building, 3rd Floor, 210 Dr D N Road, Fort, Mumbai - 400 001 Tel: 022-4037 3636, Fax: 022-4037 3635 Email: industrialmags@jasubhai.com

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Suraj Limited

S

URAJ 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: Specification: Size Range :

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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.

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Benefits Ć High Speed & Accuracy Ć Rugged & Reliable Ć Agitating Mechanism Ć Feeding Mechanism - Vibro / Screw Ć Multi Stage Filling Ć Manual Coarse / Fine Feed Ć Auto Start / Stop Specifications Ć Display - 6 digits LED Display Ć Calibration ă Digital Ć Programmable Membrane Keypad Ć Resolution - 1 in 10,000 Ć Accuracy - Better than 0.5% Ć Speed - From 2min (depending on Ć material flow LCS Controls Private Limited

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Chemical Engineering World

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Time Technoplast Ltd

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he 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.

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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 IBCĂ&#x160;s 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.

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78 â&#x20AC;˘ July 2014

PLASTIC PAILS For products that are sold off the shelf, Plastic Pails are the best bet.

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Features: Stackable without pallet | Zero Leakage | 100% Drainable IBC GNX 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.

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

Chemical Engineering World

Marketing Initiative

EIMCO-K.C.P. Ltd

T

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

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(B.Tech Chemical) General Manager ă Marketing THE EIMCO - K.C.P. LTD

Chemical Engineering World

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July 2014 • 79

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Precision Environment Measuring Instruments

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 INSTRAANALYZED 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 environmentallyfriendly recyclable HDPE bottles. With its new BAKER INSTRAANALYZED Plus acids and other existing BAKER INSTRAANALYZED, ULTREX II, and BAKER ANALYZED ACS grade acids, Avantor offers customers a complete solution for trace metal analysis across many laboratory applications.

KUSAM-MECO offers a full range of portable meters. The environment me a s u r in g ins tr ument ra n g e 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, CO 2/ temp/RH monitor data logger and hygro thermometers, etc.

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: info@avantormaterials.com or Circle ReadersÊ Service Card 1

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 details contact: Kusam Electrical Industries Ltd G-17 Bharat Industrial Estate, T J Road, Sewree (W), Mumbai 400 015 Tel: 022-24124540, 24181649 | Fax: 91-022-24149659, 27751612 E-mail: kusam_meco@vsnl.net / sales@kusam-meco.co.in or Circle ReadersÊ Service Card 2

Energy Saving SS Centrifugal Pump 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 Ltd W-7 Sector XI, Noida Uttar Pradesh 201 301 Tel: 0120-432 99-90 E-mail: info@bedaflow.com or Circle ReadersÊ Service Card 3

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Products CEW Particle Sizer TThe new ANALYSETTE 28 ImageSizer is the ideal instrument for analysis of particle 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 particle shape and particle size, damaged particles, contaminates, agglomerates or oversized or undersized particles are identified accurately and fast, and can be viewed as single images. At the same time, the instrument offers a fast and efficient particle size measurement.

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

For details contact: FRITSCH GmbH Milling and Sizing, Industriestrasse 8 55743 Idar-Oberstein, Germany Tel: +49 67 84 70 146 | Fax: +49 67 84 70 11 E-mail: koehler@fritsch.de or Circle ReadersÊ Service Card 4

Horizontal Short Shaft External Bearing Pumps Roto Pumps Ltd offers horizontal short shaft external bearing pumps RSE Series in 1,500 m/hr capacity, 40 bar pressure, 90ĈC 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 Ltd Roto House 13 Noida SEZ Noida, Uttar Pradesh 201305 Tel: 0120-3043901 Fax: 91-0120-3043928 E-mail: contact@rotopumps.com or Circle ReadersÊ Service Card 5

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CEW Products

Vertical Pressure Leaf Filter SAP Filter Pvt Ltd has made a mark in manufacturing and expor ting a spectrum of filtration equipment. Its product range is renowned for its quality and durability.

SAP Filter Pvt Ltd offers vertical pressure leaf filter for filtration 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 m 2 with dry or wet cake discharge.SAP make vertical pressure leaf filter 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 Ltd Plot No: A-5, Sector-1 The Vasai Taluka Industrial Co-op Estate Ltd Goraipada, Vasai(E), Dist: Thane, Maharashtra 401 208 Tel: 0250-2458982, 3208273, 2023040 | Fax: 91-0250-2458982 E-mail: info@sapfilter.com / sales @sapfilter.com

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 computercontrolled 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 details contact: Holmatro Group Lissenveld 30, PO Box 66 4940 AB Raamsdonksveer, Netherlands Tel: +31 (0) 162 751 480 E-mail: info@holmatro.com

or Circle ReadersÊ Service Card 6

or Circle ReadersÊ Service Card 7

Hot Water Systems 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 ă 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 Ltd 201/202 Karan Salene, 861 Bhandarkar Institute Road, Pune, Maharashtra 411 004 Tel: 020-25663581, 66047894, 66047895 | Fax: 91-020-25663583 E-mail: ShambhaviKarnik@hrsasia.co.in / info@hrsasia.in or Circle ReadersÊ Service Card 8

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Products CEW Computational Workbench 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 ă 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: Cresset New Cambridge House, Bassingbourn Road, Litlington, Cambridgeshire SG8 0SS, U.K. Tel: +44 (0)1223 858890 | Fax: +44 (0)1223 853667 E-mail: sue@cresset-group.com or Circle ReadersÊ Service Card 09

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 details contact: SAP Filter Pvt Ltd Plot No: A-5, Sector-1, The Vasai Taluka Industiral Co-op Estate Ltd Goraipada, Vasai(E), Dist: Thane, Maharashtra 401 208 Tel: 0250-2458982, 3208273, 2023040 | Fax: 91-0250-2458982 E-mail: info@sapfilter.com / sales @sapfilter.com or Circle ReadersÊ Service Card 10

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CEW Products New Dual-View Atomic Spectrometer Agilent Technologies, Inc offers Agilent 5100 Inductively Coupled Plasma ă 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 will enable customers to perform their analyses with greater speed, accuracy and ease, saving them time and money. With the new system, customers will be able to take the guesswork out of method development with intuitive ICP Exper t software and Dichroic Spectral Combiner technology.

They can also capture all wavelengths in one measurement for higher precision without delays. The systemÊs ver tical torch will enable them to measure even the most challenging samples from high matrix to volatile organic solvents with a high degree of confidence. The Agilent 5100 is available in three configurations, all featuring a robust ver tical 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 Inc 5301 Stevens Creek Blvd Santa Clara, CA 95051 U.S.A. E-mail: susan_berg1@agilent.com or Circle ReadersÊ Service Card11

Heatless Dryer 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 changeover 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 Ltd B-297 Okhla Indl Area, Phase !, New Delhi 110 020 Tel: 011-26811727, 26816103 Fax: 91-011-26816573 E-mail: mellcon@mellcon.com or Circle ReadersÊ Service Card 12

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Products CEW Decorated Packaging 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 GmbH Schillerstraße 76, 64625 Bensheim, Germany Tel. +49(0)6251 938-0 | Fax: +49(0)6251 74672 E-mail: info@sanner.de or Circle ReadersÊ Service Card 13

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 details contact: Vacunair Engg Co Pvt Ltd Nr Gujarat Bottling, Rakhial Ahmedabad Gujarat 380 023 Tel: 079-22910771 Fax: 91-079-22910770 E-mail: info@vacunair.com or Circle ReadersÊ Service Card 14

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CEW Products Dew Point Sensor

AODD Pumps

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, MIDC Dombivli (E), Dist: Thane, Maharashtra 421203 Tel: 0251-2424418, 6458885 E-mail: vadnerkar@avmacindia.com / sheeja@avmacindia.com or Circle ReadersÊ Service Card 15

AlmatecÊs E-Series plastic AODD pump has been upgraded with electrically conductive PTFE diaphragms to provide safer transfer of chemicals while 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 details contact: Dover India Pvt Ltd ă PSG 40 Poonamallee By-pass,Senneerkuppam Chennai 600 056 Tel: 044-26271020 E-mail: sales.psgindia@psgdover.com or Circle ReadersÊ Service Card 16

Disposal Transfer Tools 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 ă the Disposable Transfer Tool ă 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 ă 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 AG Seestrasse 103, CH-8708 Männedorf, Switzerland Tel +41 (0)44 922 81 11 | Fax +41 (0)44 922 81 12 E-mail: info@tecan.com or Circle ReadersÊ Service Card 17

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Dye+Chem Bangladesh Dates: 3-6 September 2014 Venue: Dhaka, Bangladesh Details: Biggest show in Bangladesh for buyers and suppliers of dyes & chemicals Organiser: Conference & Exhibition Management Services Limited Contact: +65 6829 2144 Email: cems@cems-asiapacific.com Website: www.cemsonline.com Corcon 2014 Dates: 12-15 November 2014 Venue: Grand Hyatt, Mumbai Details: Corrosion Conference and Expo Organiser: Nace International Gateway India Section (NIGIS) Contact: +91 22 2579 79 30; +91 22 2579 73 54 Email: kim.shah@nace.org Website: www.corcon.org

Speciality & Agro Chemicals America Dates: 8-10 September 2014 Venue: Charleston, USA Details: The 3 rd Annual Event for Agro, Specialty, and Custom Chemicals Organiser: American Chemical Marketing Contact: 1 215 882-9100 Email: tom.leahy@chemicalsamerica.com Website: www.chemicalsamerica.com

Watertech India 2014

RPTC

Dates: 10-12 September 2014 Venue: Pragati Maidan, New Delhi Details: Trade Fair for Water & Wastewater Treatment & Management Organiser: Messe Frankfurt Trade Fairs India Pvt Ltd Contact: +91 22 6144 5900 Email: rohit.rebello@india.messefrankfurt.com Website: www.watertechindia.com

Dates: 8-11 September 2014 Venue: Moscow, Russia Details: Russia & CIS Refining Technology Conference & Exhibition Organiser: Euro Petroleum Consultants Ltd Contact: +7 495 517 77 09 Email: moscow@europetro.com Website: www.europetro.com

World PetroCoal Congress

ICIF, China

Dates: 15-17 Februar y 2015 Venue: Convention Centre-NDCC, New Delhi Details: On sustainable usage of the non-renewable resources Organiser: Energy and Environment Foundation Contact: +91 11 2275 8149 Email: punit.nagi@ee-foundation.org Website: www.worldpetrocoal.com

Dates: 11-13 September 2014 Venue: Tianjin, China Details: The 13 th International Chemical Industry Fair 2014 for Chemical & Petroleum Organiser: China National Chemical Information Centre Contact: +86 10 6444 4135 Email: fany@icif.cn Website: www.chinaexhibition.com

India Chem

Middle East Coatings Show 2015

Dates: 9-11 October 2014 Venue: Bombay Convention & Exhibition Centre (BCEC), Mumbai D e t a i l s : A n ex h i b i t i o n o n c h e m i c a l , p e t r o c h e m i c a l a n d pharmaceutical sector Organiser: Federation of Indian Chambers of Commerce & Industry Contact: +91 11 2373 8760; +91 11 2376 5081 Email: manoj.mehta@ficci.com Website: www.indiachem.in 90 â&#x20AC;˘ July 2014

Dates: 9-11 March 2015 Venue: Dubai International Convention & Exhibition Centre, UAE Details: An event for raw materials suppliers and equipment manufacturers Organiser: DMG Events Ä&#x192; ME & Asia Contact: +971 4 4380355 Email: info@dwtc.com; chrishamilton@dmgeventsme.com Website: www.coatings-group.com Chemical Engineering World

Project Update CEW New Contracts/Expansions/Revamps The following list is a brief insight into the latest new projects by various companies in India. Ć 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.

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.

Punjab Chemicals & Crop Protection is planning 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.

Ć MINING Sri 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.

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, district: Visakhapatnam, Andhra Pradesh. As of September 2013, the project is waiting Chemical Engineering World

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.

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 59 th EAC (Thermal & Coal Mining Projects) meeting held on 6 th 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 57 th EAC (Thermal & Coal Mining Projects) meeting held on 17 th 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 55 th meeting of the EAC (Thermal & Coal Mining Projects) held on 28 th August 2012.

Odisha Power Generation Corporation is planning the Manohar pur opencast coal mining project in distr ict: 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.

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CEW Project Update 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 limestone mining project in village New Umrangshu, district: Dima Hasao, Assam. As of April 2012, mining work commenced in 2013.

Jaiprakash Associates is planning limestone mining project in village Kothar, district: Satna, Madhya Pradesh. As of March 2012, the project is waiting for environmental clearance and the project completion date is yet to be finalized. Ć NON-CONVENTIONAL ENERGY Siddheshwari Paper Udyog is implementing a 6-MW rice husk-based captive power project in Kashipur, district: Udham Singh Nagar, Uttarakhand. The project is coming up with an expansion of its kraft paper-manufacturing unit. Civil work is nearing completion and machinery has been ordered.

The Jeypore Sugar Company Limited is planning an expansion of its bagasse-based co-generation power plant from initial 0.5-MW to 8.5-MW in village: Chagallu, district: West Godavari. Andhra Pradesh. As of January 2014, the project will come up along with a new 120-KLD grain-based distillery. The project is waiting 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 village: Kudluru, district: 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 Distribution Company of Andhra Pradesh Ć NON-CONVENTIONAL POWER IPL Sugars & Allied Industries, a Group company of Indian Potash, is planning a 20-MW bagasse and rice husk-based IPP spread over 250-acre of land in village: Motipur, district: Muzaffarpur, Bihar. As of March 2012, the existing plant will be demolished and the new plant will 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.

92 • July 2014

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. Ć THERMAL POWER Talavadi Cements, a subsidiar y of Bir la Cor poration, is planning a 35-MW captive power project in village: Bari, district: Satna, Madhya Pradesh. JM Environet is the Environmental Consultant. The project is waiting for environmental clearance. The power generated will 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 1ï40-MW in Phase-I and another 1ï40-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, district: Kaimur (Bhabua), Bihar. The project is waiting for environmental clearance. Land has been acquired.

The project will come up along with an ordinary por tland cement manufacturing project. The total cost of both the projects is ` 900-million.

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, district: Vizianagaram, Andhra Pradesh. The project is in conceptual stage. Work on the project is expected to commence in 2017.

The project will come up along with a 50,000-TPA coke oven products manufacturing project.

Jai Bhole Cement Combine, a group company of Zawar Sales, is planning a 72-MW coal and 10-MW waste heat recoverybased captive power project in Velabai, district: Yavatmal, Maharashtra. Equipment supplier is yet to be appointed.

The project is waiting for final approval of environmental clearance. Work on the project commenced in March 2014 and is planned for completion in H1 2017. The project will come up as par t of its ` 151-billion 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 its coal and lignite-based captive power project at a cost of ` 8,500 million (inclusive of viscose filament yarn project) at Indian Rayon unit at Veraval, district: Gir Somnath, Gujarat. The project is waiting for environmental clearance and is planned for completion in 2 years from zero date.

Chemical Engineering World

Project Update CEW

Project

Country

Value ($)

Status

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

-

QAFAC - Carbon Dioxide (C0 2) 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

Middle East

Study

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

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

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

-

Chemical Engineering World

1,400,000

Execution

Study

Execution July 2014 â&#x20AC;˘ 93

CEW Project Update

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

Brass Fertilizer Plant

Nigeria

3,500,000,000

980,000,000

Dangote Oil Refinery

Nigeria

-

Coega (Mthombo) Refinery

South Africa

Mnazi Ammonia/Urea/Methanol Project

Execution Study Execution

10,000,000,000

FEED

Tanzania

-

Study

Hoima Oil Refinery

Uganda

2,500,000,000

Caspian Region

Country

Value ($)

Azerikimya Ethylene-Polyethylene Plant

Azerbaijan

-

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

Bidding Status Execution

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

Kazakh GTL Plant

Kazakhstan

-

Planning

Pavlodar Refinery

Kazakhstan

40,000,000

Execution

Largest Polymer Modified Bitumen Plant

Russia

-

Planning

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

94 â&#x20AC;˘ July 2014

Chemical Engineering World

Ad Index CEW Sr No

Client’s Name

Page No

Sr No

Client’s Name

Page No

1

ACI Engineers

71

24

Kishor Pumps Pvt Ltd

73

2

Arvind Anticor Ltd

69

25

Kwality Process Equipment Pvt Ltd

39

3

Atomic Vacuum Company (Exports)

Inside Cover I

26

Mazda Ltd

89

4

BHS-Sonthofen (India) Pvt Ltd

63

28

Membrane Hitec

59

5

Busch Vacuum

53

29

Mist Resonance Engg Pvt Ltd

73

6

Chempro Expertise Pvt Ltd

69

31

PPI Pumps Pvt Ltd

77

7

Chempro Technovation Pvt Ltd

100

32

Rajdeep Engineering Systems (Pune) Pvt Ltd

71

8

Chemtech World Expo 2015

61 & 62

33

Rasaii Flow Lines Pvt Ltd

57

9

Desmi Pumping Technology A/S

35

34

Rathi Transpower Pvt LTd

77

10

Dover India Pvt Ltd

55

35

Rittal India Pvt Ltd

11

Emjay Engineers

47

36

Robinson Cargo & Logistics Pvt Ltd

13

12

Eureka Forbes Ltd

27

37

Simulanis Solutions Pvt Ltd

75

13

Garnder Denver Engineered Products India Pvt Ltd

6

38

Super Industrial Lining Pvt Ltd

14

GEA Process Engg (I) Pvt Ltd

31

39

Suraj Ltd

89

15

Glatt (India) Pharma Engineering Pvt Ltd

29

40

Tecnimont ICB Pvt Ltd

25

16

Gopani Product Systems

Back Cover

41

Time Technoplast Ltd

11

17

Hi-Tech Apllicator

7

42

Toshniwal Instruments (Madras) Pvt Ltd

43

18

ImageGrafix Engineering Services Pvt Ltd

79, 81,83, 85

43

Tranter India Pvt Ltd

37

19

Industry Automation & Control 2015

67

44

Uni Klinger Ltd

49

20

Integral Process Controls India Pvt Ltd

23

45

Universal Forces Industries

15

21

Jasubhai Engineering Pvt Ltd

5

46

UNP Polyvalves (India) Pvt Ltd

41

22

Kevin Enterprise Pvt Ltd

17

47

Warade PackTech Pvt Ltd

19

23

Kirloskar Brothers Ltd

Inside Cover II

48

Watertech

67

Chemical Engineering World

9

3

July 2014 • 95

CEW Book Shelf Applied Process Design for Chemical and Petrochemical Plants: Vol 3 Author Price Pages Publisher

: Ernest E Ludwig : INR 20,377.50 : 712 : Gulf Publishing

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.

Guidelines for Fire Protection in Chemical, Petrochemical, and Hydrocarbon Processing Facilities Authors Price Pages Publisher

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

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 facilityĂ&#x160;s Risk Management System.

Simultaneous Design and Control of Chemical Plants Author Price Pages Publisher

: Luis Ricardez-Sandoval : INR 7,215.00 : 284 : VDM Verlag

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 the process 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.

96 â&#x20AC;˘ July 2014

Occupational Safety and Health Simplified for the Chemical Industry Editor Price Pages Publisher

: Frank R. Spellman, Revonna M. Bieber : USD 75.05 : 204 [Paperback] : Springer

About the Book : Identifying safety risks inherent to the chemical industry, this new book identifies steps that safety managers can implement in their facilities 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 OSHAĂ&#x160;s 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.

Chemical Engineering World

Interview CEW

Rising Above the Competition

In an invterview with Mittravinda Ranjan, Vipul Shah, Chairman, CEO and President, Dow Chemical International Pvt Ltd (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 “utilise the capacities by creating infrastructure and mapping the country for ideal tanks and warehouse locations, aligned to the customer needs.”

Chemical Engineering World

July 2014 • 97

CEW Interview 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 utilised. 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 like 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 million tonnes per year and 60 per cent of this production is targeted for the Asia Pacific market.

If you look at the big picture, the growth for Asia Pacific becomes very imminent.

Dow had the customer reach, offices and relationships across major countries in the region. Now, we also have a strategic positioning from a competitive stand-point and a dedicated supply of products coming in. This is the biggest game changer for us at Asia Pacific 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

One of Dow’s goals has been differentiating the company from its competition by raising the bar of market standards, through constant innovation. We closely observe the market segments and offer customised solutions through our product portfolio, which makes a difference to the end-user segments.

98 • July 2014

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

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 competitive position 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 itself. We will have PE trains including LDPE, elastomer trains, PU, MDI/TDI, amines and glycol ethers – the full building block range - which is a necessity for the growth of countries like India.

Utilising many of Dow’s industry leading technologies, the complex will possess cost-advantaged flexible cracking capabilities and produce over 3 million metric tonnes of high value-added chemical products and performance plastics annually. The JV complex, along with the adjacent ‘value parks’, Chemical Engineering World

Interview CEW will capitalise 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 utilise 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 competition by raising the bar of market standards, through constant innovation. We closely observe the market segments and offer customised solutions through our product portfolio, which makes a difference to the enduser 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 sellingup, 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-positioned assets will continue to provide the much needed competitive edge, which allows Chemical Engineering World

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. us to continue to do value addition for the customers. We focus on innovating for local solutions, bringing about those little tweaks in our product or application portfolio 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 USGulf in cracker to produce elastomers in the Ethylene Propylene Diene Monomer (EPDM).

The production from this project will primarily cater to the domestic demand, since shipping the product over large distances would not be a competitive option. So, while this particular investment will cater to the American markets, the Sadara complex will supply to the Asia-Pacific market, the Middle East zone, Eastern Europe and African.

At some point of time in the near future, naphtha pricing will play a role, since shale gas prices cannot be dissociated from the naphtha gas prices. In my view, it is more of wait-and-watch situation on how the shale gas will 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

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 capability of Dow has been mirrored in India and we are nearly a billion 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 cities or satellite cities, you can see that this will correspond to a huge demand in the speciality 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 will support the growth of the manufacturing sector which will in turn propel the chemical industry into the next growth trajectory. From the long term perspective, it is right on the spot whereas the quantum of reforms can be argued over.

July 2014 • 99

8 â&#x20AC;˘ December 2013

Final Ad template amol.indd 8

Chemical Engineering World

20-01-2014 19:44:27

R.N.I. No. 11403/1966 Date of Publication: 29 th of every month. Postal Registration No: MH/MR/SOUTH-125/2012-14.

Posted at Patrika Channel Sorting Office, Mumbai 400001, on 29th & 30th of every month. Total Page No.: 102

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