Value Analysis of Modular Chemical Plants

  • Author: Elmar Zimmermann
  • Published Date: 18 March 2011
  • Source / Publisher: Chemical Engineering and Technology/Wiley-VCH
  • Copyright: Wiley-VCH Verlag GmbH & Co. KGaA
thumbnail image: Value Analysis of Modular Chemical  Plants

The chemical industry faces the difficulties of intensified global competition, shorter product life cycles, and volatile markets, which lead to insecure forecasts. Other industries that have faced the same difficulties have already implemented modular production concepts. For the chemical industry the question is whether earlier time to market and flexibility during operation of the modular plant outweigh the scale efficiencies of the large-scale plant.

Stefan Lier and Marcus Grünewald, Ruhr-Universität Bochum, Germany, compared the economics of a modular chemical plant with those of a traditional large-scale plant by investigating investment and operation costs, combined with revenues, using a net present value analysis.

They conclude that the chances overweigh the risks for the modular plant, especially if market demands develop other than ideally. Modules have to be built as early as possible in time to create revenues early and take market share.

Article Views: 3928

Sign in Area

Please sign in below

Additional Sign In options

Please note that to comment on an article you must be registered and logged in.
Registration is for free, you may already be registered to receive, e.g., the newsletter. When you register on this website, please ensure you view our terms and conditions. All comments are subject to moderation.

Article Comments - To add a comment please sign in

If you would like to reuse any content, in print or online, from, please contact us first for permission. more

Follow on Facebook Follow on Twitter Follow on YouTube Follow on LinkedIn Follow on Instagram RSS Sign up for newsletters

Magazine of Chemistry Europe (16 European Chemical Societies) published by Wiley-VCH