Project Overview
Solvin shut down a complete EDC / VCM / PVC production complex in Ludwigshafen, Germany and needed a strategy for both the reusable process assets and the portions of the facility that no longer made economic sense to relocate.
Phoenix Equipment purchased the complete plant for resale, identified a buyer in Egypt, and coordinated the relocation of the equipment selected for continued use. Phoenix also assumed the cost of demolishing plant areas, structures, and ancillary components that were not economical to move. The approximately $2.75 million project ran from November 2007 through February 2009.
The Challenge
Not every part of the EDC / VCM / PVC complex made economic sense to relocate. Major process assets retained enough value to support international reuse, while other structures and ancillary systems were better addressed through demolition.
Phoenix had to determine which parts of the complex should be preserved for relocation and which should be removed through demolition.
Plant Sale, Relocation & Dismantlement
Phoenix purchased the complete EDC / VCM / PVC complex and marketed the production assets for continued industrial use. The viable plant equipment was ultimately sold for relocation to Egypt.
At the same time, Phoenix funded the demolition of areas and ancillary components that were not economical to relocate. This allowed reusable production assets to be preserved while the remaining shutdown infrastructure was removed as part of the same project.
Project Outcome
Solvin recovered significant value from the shutdown assets while reducing the cost of removing the portions of the complex that were not economical to relocate. Phoenix handled both sides of the project under one acquisition, preserving reusable process equipment for relocation to Egypt while funding demolition of the remaining areas.
Project Highlights
- Client: Solvin
- Location: Ludwigshafen, Germany
- Facility: EDC / VCM / PVC Production Complex (Stock # 141)
- Phoenix Scope: Plant Acquisition, Asset Resale, Relocation and Dismantlement
- Plant Destination: Egypt
- Disposition Strategy: Relocate Viable Process Assets / Demolish Remaining Infrastructure
- Project Timeframe: November 2007 – February 2009
- Project Value: Approximately $2.75 Million
- Owner Outcome: Significant Asset-Sale Revenue and Reduced Removal Costs
Combining Plant Relocation With Selective Demolition
The Solvin project combined international plant relocation with selective demolition. Process assets with viable reuse value were moved to Egypt, while the remaining structures and ancillary systems were removed rather than carried through an uneconomic relocation.
That approach allowed Solvin to recover value from the shutdown complex while reducing its overall removal cost.