Petrochemical industry feeling the effects of economic downturn 14 June 2010

The difficult financial climate is having an impact on petrochemical plants, according to a survey by valves supplier HS Pipequipment.

Almost one third (31%) of respondents (engineers, buyers, materials controllers and directors) say they have seen reduced production, while 30% also say they have been moving away from buying new equipment and 42% reckon there is now a greater need to do more with less resources.

The survey also shows that identifying the correct product specifications when things go wrong, and new equipment or parts are needed, is proving difficult, with 55% of respondents reporting that they spend more time on it during the procurement process than on anything else.

And, according to 29% of those surveyed, valves are causing more difficulties than anything else – including pumps, compressors and other rotating machinery combined. During shutdowns, an unexpected need for essential components was the most common problem cited by 80% of respondents.

Says Peter Everett, managing director of HSP: "[Valves'] complex specifications can cause headaches for the petrochemical industry. When you consider that a valve can last up to 20 years, it's easy to see why the original paperwork can get lost.

"Additionally, a plant may have five or six of the same valve type that have been manufactured to different specifications – which leads to greater time spent getting clarification of exactly what is needed. When time is already tight and you're working against the clock, this makes life very tough."

And he adds: "In tough economic times, plants inevitably want to keep costs down by only purchasing parts as needed, making it essential that suppliers have an extensive inventory and are therefore able to offer a fast response."

Brian Tinham

Related Companies
HSP Ltd - Newbury

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