Project Overview
A major platinum producer in Zimbabwe needed additional oxygen capacity to support its metallurgical operations. Phoenix Equipment identified a 55 TPD VPSA oxygen plant in India that had operated for only about two years and was available for relocation.
The buyer evaluated the plant, confirmed that it could meet its requirements, and committed to the acquisition within approximately two months. Phoenix then managed the dismantlement, inland transportation, export logistics, and ocean freight required to move the plant from India to Zimbabwe.
The approximately $2 million project ran from November 2022 through October 2023 and gave the buyer access to existing oxygen-production capacity without waiting for a new plant to be engineered and manufactured.
The Challenge
The buyer needed additional oxygen capacity on a schedule that a conventional new-build project could not easily meet. A new oxygen plant would have required engineering, manufacturing, delivery, installation, and commissioning before production capacity became available, with the overall process expected to take more than a year.
The alternative therefore had to satisfy more than just capacity. The buyer needed equipment in suitable condition, with a known operating history, technical documentation, and a configuration that could be dismantled and relocated to Zimbabwe without introducing another lengthy development cycle.
Identifying the Right Plant
Phoenix located a surplus oxygen plant owned by Bhagawati Oxygen in India. The 55 TPD VPSA unit, manufactured by Sumitomo Seika, had previously supported copper-smelting operations. When those operations ceased, the oxygen plant became inactive even though the equipment remained fully functional.
The plant produced approximately 93% oxygen, had only about two years of operating runtime, and remained in excellent condition. OEM documentation and spare parts were also available, giving the buyer an existing production system with a known operating history and no manufacturing lead time.
Technical Evaluation & Buyer Due Diligence
Phoenix reviewed the plant's design, condition, operating history, documentation, and suitability for the buyer's intended application. The Zimbabwean producer also evaluated the equipment as part of the acquisition process and confirmed that the system could provide the required oxygen capacity and be dismantled and relocated to a new operating site.
The plant's limited runtime also strengthened the case for reuse. With only about two years of prior operating service, the equipment remained in excellent condition and offered many of the advantages associated with newer equipment without the manufacturing delay of a new plant.
Why the Existing Plant Fit the Project
The buyer's decision centered on two factors: schedule and capital. Building a new oxygen plant would have required more than a year before additional production capacity became available, while the Bhagawati plant was already manufactured, operational, and available for relocation.
The capital requirement was also substantially lower than a completely new installation. By purchasing the existing plant, the buyer could move ahead with its expansion without taking on the full cost and manufacturing timeline associated with new equipment. Once the technical evaluation was complete, the buyer approved and committed to the acquisition within approximately two months.
International Dismantlement & Relocation
Identifying the right plant was only the first part of the project. The oxygen unit still had to be safely removed from its existing location in India and transported internationally to Zimbabwe.
Phoenix coordinated the dismantlement, equipment preparation, inland transportation in India, export logistics, port operations, ocean freight, and international transportation planning. By managing these activities as one relocation program, Phoenix helped move the plant from an inactive industrial site in India to a new metallurgical application in Zimbabwe.
Project Outcome
The Zimbabwean platinum producer acquired a fully functional 55 TPD oxygen plant and avoided more than a year of new-build schedule. The transaction also reduced the capital required for the expansion compared with purchasing a new system.
For Bhagawati Oxygen, the transaction recovered value from equipment that had become surplus after the associated copper-smelting operation ceased. Rather than remaining idle, the plant was transferred to a new industrial user and returned to productive service.
Project Highlights
- Buyer: Major Zimbabwean Platinum Producer (Stock # 532)
- Plant: 55 TPD VPSA Oxygen Plant
- Product Purity: Approximately 93% Oxygen
- OEM: Sumitomo Seika
- Condition: Fully Functional / Approximately Two Years Runtime
- Original Location: India
- New Location: Zimbabwe
- Phoenix Scope: Plant Sourcing, Acquisition, Dismantlement and International Relocation
- Project Value: Approximately $2 Million
- Project Timeline: November 2022 – October 2023
- Buyer Commitment: Approximately Two Months
- Buyer Benefit: More Than One Year of Schedule Savings and Lower Capital Cost Versus New
These project details are documented in the original case study.
From Surplus Capacity in India to Productive Capacity in Zimbabwe
Existing process capacity can solve a project problem that new equipment cannot always solve on the same schedule. In this case, the buyer's need for additional oxygen capacity matched an underutilized plant in another country.
Phoenix connected those requirements and managed the relocation from India to Zimbabwe. The result was an existing plant returned to productive use and a buyer able to move ahead without waiting for a completely new oxygen system to be engineered and manufactured.