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Cost Evaluation of Moving Process Plants

Cost Evaluation of Moving Process Plants

Author: Marketscale/Monday, July 18, 2016/Categories: Plants

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Process plants consist of a multitude of moving parts. At some point, most will be forced to relocate to another piece of land, whether it’s due to expansion or downsizing. As any plant manager can attest, moving can be an expensive and overwhelming endeavor. Fortunately, companies like IPPE are available to help managers make accurate and swift evaluations of moving costs. For over 40 years, IPPE has opened, supplied, closed and sold process plants and equipment. 

Before shareholders can sign off on plant relocation plans, they must be certain of moving costs as well as how moving the plant will affect the global market and other stakeholders. Most plants relocate because they need more space to operate. Other reasons for a relocation include energy costs, logistics costs, tax incentives and environmental concerns.

Transporting equipment and production lines is a sensitive and complex matter. The schematics of moving parts are complex in their own right, and the threat of parts being lost in transportation or of arriving late has severe consequences. 

There are often many errors made during the plant relocation process. According to a 2009 article published by Control Engineering, the most common include failure to accurately estimate and plan the relocation schedule, budget, and contingency, failure to plot financial implications of the relocation, and failure to accurately assess physical requirements of relocating the plant. Failing to accurately assess physical requirements is especially important and can be avoided by creating an initial analysis that covers every detail of each process and ensures the processes’ requirements are possible in each location. 

Planning in advance is the key. The costs, delivery schedules, shipment ramifications, and every other piece of the relocation puzzle must be assessed, analyzed, and drawn out. Communicating with executives and financial team is essential as well. Everyone must be on the same page about the costs associated with relocating.

Moving a process plant is becoming more common in our increasingly globalized economy. Moving parts of a plant or even a whole plant will impact many facets of the local economy and the plant’s stakeholders. The feasibility studies required to gauge these implications take months and add costs to the move. Managers and shareholders need good options when selecting a service for gauging these kinds of complex data projects. IPPE is unrivaled as the industry leader in gauging relocation costs in a timely manner. 

If time is of the essence for your plant relocation, there is no other option as reliable as IPPE. Contact us to discuss our client-driven, high performance record.

Call USA: +1 (609) 586-8004
UK: +44-1642-367910
DEU: +49-30-65-942445

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  • In 2016 IPP announced that they will be restarting the fiber manufacturing facility. This restart will have a huge positive impact on the Darlington & Florence areas in created at least 250 new jobs.
    — Darlington Development
  • The former Kirkby Kodak Site in the UK at one time nearly 500 people. As part of the Kodak bankruptcy all of those jobs were lost. IPP bought the site and created a flexible active industrial business park that today employees over 250 people, with and expected growth to add another 200 back to the workforce.
    — Tony Field.
  • IPP sold and relocated a 500 ton /day Nitric Acid Plant from Texas to India for us. This purchase enabled us to expand our capacity footprint by 100%, and significantly faster than sourcing a new plant.
    — A Global Fertilizer Company

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