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Maximisation of income for INEOS

Seeking the advice of a specialist engineering consultancy can reveal previously unconsidered opportunities and considerable cost benefits, as INEOS ChlorVinyls has found after appointing RVA Group to manage large-scale UK decommissioning projects in Barry and Runcorn.

INEOS ChlorVinyls – Europe’s largest polyvinyl chloride (PVC) manufacturer – engaged sector-specific CDM coordinators and project managers RVA Group, to oversee the safe execution of these two major projects and ensure the maximisation of income from the resale of redundant plant and metallic arisings including high-value exotic alloys.

RVA commenced its role at INEOS ChlorVinyls’ Barry site after manufacturing ceased in March 2010 as part of a consolidation of activities. Having planned to decommission and clean the site before handing it back to the landlord with the plant intact, INEOS sought RVA’s isolation and decommissioning guidance. However acknowledging the financial implications of INEOS’ proposed site exit strategy, RVA conducted a series of in-depth feasibility and option studies to investigate more commercially attractive routes for the client.

Utilising its vast knowledge and experience of asset recovery, RVA recommended that INEOS hand the site back as flat slab, as plant demolition and dismantling could generate an income from the sale of the process equipment – some had potential for reuse whereas other items (as a result of their high-value metallurgy) would create a positive income stream.

To demonstrate their confidence in the proposed alternative site exit strategy, RVA agreed to work for six weeks – at risk – to test the feasibility of their solution. If the project plan had proven unachievable, RVA would have waived all costs for work undertaken during this investigatory period.

However, as RVA had anticipated, the team was able to demonstrate that the project could be delivered with significant cost savings thus reducing the financial burden for INEOS.

Now RVA is project managing the dismantling and demolition of INEOS ChlorVinyls’ production facilities including process vessels, aluminium and concrete storage silos, a boilerhouse and three steel 1,500 cubic metre storage spheres. With a 27-man team on site, and kit ranging from excavators with shears and grab buckets to an ultra long reach machine safety remains the number one priority.

Colin Hopwood, INEOS ChlorVinyls’ site services manager for Runcorn explains the reason for RVA’s extensive involvement in the Barry site project: “RVA’s role with INEOS in fact commenced with the team’s development of a detailed redundant asset management review for our Runcorn site.

“The Company drew upon its technical engineering experience to assess a number of plants, projected costs of removal, optimised sequencing and a potential rolling decommissioning programme for several areas of the 125-hectare top-tier COMAH site. The quality and integrity of this guidance not only led to us proceeding with the Runcorn works, but I also then recommended their services to a colleague heading up the Barry project.”

Since the sequential decommissioning and demolition of five redundant chemical processing plants began on the high-hazard Runcorn site in August 2010, the site has remained operational elsewhere. Meticulous planning and project coordination has therefore been essential to ensure minimal disruption and utmost safety for all parties.

Priority was given to the complex dismantling of INEOS’ four distillation columns, ranging from 40 to 60 metres in height, which had to be dismantled to a low height before the arrival of the year’s high winds. However due to their proximity to high-hazard pipelines, and given the inherently dangerous nature of hot-cutting techniques, an alternative dismantling process had to be devised. Instead RVA oversaw the more time-intensive, but far safer alternative, of using high pressure abrasive water jets that ran around the circumference of the columns’ cut lines to eliminate the flammable risks, before the top sections could be removed with a lifting nail attached to a 500t crane.

With six months of the programme still to complete, RVA is currently planning for the dismantling of INEOS’ anhydrous caustic soda plant – a procedure that will take place in May 2011. Although the asset is no longer needed by INEOS, the plant is in good condition and is being carefully dismantled for re-erection elsewhere.

Colin Hopwood continues: “Due for completion in August 2011, the clearance of the redundant assets within our Per-Tri, Per-Tri Shipping, ACS, VDC4 and KOH plants will prepare the site for potential new INEOS ventures.

RVA’s experience supported by impressive client references and commitment to offering independent, value-adding support, cemented our decision to choose their team.”

RVA managing director Richard Vann concludes: “The scenario that we’ve seen at the two INEOS sites is one that is becoming increasingly common. Companies around the world are under great pressure to ensure that their sites are decommissioned safely, but at the same time cost-effectively. This financially challenging and inherently hazardous situation usually represents a step into the unknown for most site owners and operators, which is why specialist engineering expertise and experience is required. Our goal is always to maximise our clients’ return on assets where possible and safe to do so.”

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Global demand for RVA’s expertise soars

RVA Group – the UK’s leading expert in large-scale decommissioning, decontamination, dismantling and demolition project management – is preparing for a period of controlled growth in 2011 following a record-breaking 12 months’ performance.

The company, which has enjoyed year-on-year expansion since its formation in 1992, saw turnover increase by 15% from 2009 to 2010. Much of the new work is being driven by RVA’s growing international presence, with organisations from around the world turning to the Ipswich-based company for help when decommissioning major industrial processing sites.

RVA’s managing director Richard Vann explains: “Many large, complex, high-hazard installations worldwide are now reaching their end of life. This challenging area of work remains inherently high-risk so the need for our specialist engineering support in the UK and overseas is paramount.”

Having now completed in excess of 500 projects – including some of the largest process plant decommissioning assignments this country has ever seen and in locations as challenging as Turkmenistan – RVA has worked with many internationally renowned blue-chip organisations such as GlaxoSmithKline, BASF, Ineos, GrowHow, CIBA and ConocoPhillips to name a few.

In 2010 RVA’s expertise was called upon to provide project management assistance and technical guidance for a 7-hectare Portuguese power plant decommissioning project. In January the team was appointed to provide specialist demolition and safety expertise to support the clearance of a cement works in Cyprus, and now – as its overseas reputation continues to grow – RVA is receiving further enquiries from countries across Europe, including the Netherlands, France and Germany.

The website has been a key driving force in attracting global interest in recent months. With a multi-lingual homepage that can be translated into seven different languages, the site is designed to be an informative resource from which prospective clients can make informed, considered decisions about what steps to take when facing site rationalisation or closure.

Whilst RVA is looking forward to taking on new international projects, the expansion will be steady and controlled in order to maintain the company’s exemplary EHS (environment, health and safety) record. RVA will also remain committed to providing an independent, tailored service with bespoke recommendations for every client, taking into account each project’s unique factors and requirements.

To support the projected growth, two new specialist project managers have been recruited to join the company’s existing team of engineering experts, with further expansion of RVA’s skill-set planned for this year.

RVA has become well established as a UK market leader in the technically challenging field of decommissioning consultancy services, and we anticipate that projects within this country will remain integral to our business model going forward. However with the increased number of large-scale industrial site closures occurring across the globe, we are now ready to achieve our long-term strategy to become a market leader on the international stage too,” concludes Vann.

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Authoritative role for RVA at leading event

The specialist expertise of RVA Group has been sought by the Institution of Mechanical Engineers (IMechE), as part of an authoritative one day seminar focusing upon redundant plant.

Set to attract site owners and operators from throughout the country, the Wilton event will offer an in-depth look at the engineering and safety issues typically faced when managing redundant assets. A programme of presentations is planned for the 19th May 2011, with RVA delivering a session focusing upon “Dismantling Plant for Sale and Re-use” at 14:05.

Having completed in excess of 500 large-scale, complex and high hazard projects, RVA can offer much-needed expert guidance regarding what is usually a step into the unknown for many organisations.

An RVA director explained: “Companies across the globe face great uncertainty when assessing the viable options for redundant plant. However, day in day out, RVA works exclusively for clients within these financially challenging and inherently high-risk circumstances, to provide a much-needed professional insight into this very specialist area of engineering.

“We therefore have a lot to offer at a leading industry event such as this. Since 1992 our team has been dedicated to providing unbiased, uncompromised, knowledge-based management support – in the disciplines of decommissioning, decontamination, dismantling and demolition – so I would encourage anyone who is currently (or potentially) facing site rationalisation or closure, to attend.”

RVA’s presentation will investigate:

  • What feasible options exist for redundant plant?
  • How to establish the commercial viability of dismantling plant for sale and re-use before approaching the market?
  • How to ensure vendor control over the project execution and finances?
  • What methodology and subsequent management approach will ensure facilities are decommissioned, isolated, demolished and/or dismantled safely, whilst at the same time cost-effectively and with minimal environmental impact?
  • What potential challenges and risks are associated with this complex activity and how these can be identified, anticipated and overcome?

For further information about the event, contact RVA or visit the IMechE website.

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Cementing Overseas Relationships

Working with local consulting engineers PPA, RVA is developing the demolition and site clearance plan for the Moni cement works owned by Cyprus Cement Public Company, a member of the Galatariotis Group.

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EU Win In Energy Sector

One of Europe’s major energy operators Energias De Portugal (EDP), has appointed RVA to provide project management assistance and technical advice during their vast demolition and site clearance project in Portugal.

As the UK’s leading expert of large scale decommissioning, decontamination, dismantling and demolition projects, RVA is supporting EDP throughout the decommissioning and demolition of its 7 hectare power plant in Barreiro, Portugal.

RVA has already helped EDP prepare a detailed project specification and tender documentation, and will play a key role in the contractor selection programme. Following the appointment of a contractor, RVA is available to continue to work with EDP, providing specialist project management support and technical advise as required throughout the programme of works.

The project will include the demolition of several large structures comprising a 1,000m oil and steam pipeline, engine room, boiler, steam turbines, pumping station and two on-site reservoir tanks, each measuring 7,500m³.

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Scottish Multi For RVA

River Clyde Homes has selected RVA’s multi-disciplined team, to support them in the demolition of Octavia Court, a 17 storey residential block in Greenock.

RVA’s in-house demolition and CDM experts will work closely with River Clyde Homes to project manage the demolition programme and co-ordinate site operations.

The tower block will be brought down by the controlled use of explosives in early 2011, to allow for the continuation of a large scale regeneration programme. When the site is cleared, work will commence to build 14 new terraced and semi-detached homes that will house up to 56 people.

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Vast Jigsaw Completed

A highly complex programme of plant decommissioning, isolation, demolition and ground remediation has been completed at GrowHow UK Limited’s former 100-acre fertiliser production site at Severnside, under the guidance of project management consultants and CDM coordinators RVA.

See projects for more information…

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New Service To Address Current Market Conditions

RVA has developed a ‘care and maintenance’ service to support clients who wish to decommission a plant or site but not necessarily go immediately into a dismantling or clearance phase.

See the services section of this website.

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RVA Provides Asset Retirement Obligations Service

RVA has announced its Asset Retirement Obligations facility. Using industry specific knowledge and expertise, RVA is able to provide soundly based and realistic long-term cost estimates, allowing companies to demonstrate that adequate funding has been reserved, for eventual decommissioning of plant and sites.

See services for more information…

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