1) The Challenges of Closing an Industrial Plant2) Definition of a Total Plant Deactivation (TPD)3) The Goals of TPD Project4) The Services5) An Overview of the Process6) The ResultsWhat to expect from this presentation
• Environmental regulations• Safety Issues• Finding buyers for assets• Selling real estateChallenges of Closing an Industrial Plant
Total PlantDeactivationThe solution for these challenges?
DefinitionTotal Plant Deactivation TPD (tee-pee-dee) noun1 program designed and used for a manufacturing plant closing inorder to maximize recovery of assets while managing all tasks neededto complete project 2 a division of Stuart B. Millner & Associates
When is a TPD needed?1. An industrial plant shuts down2. The company needs to sell off the machinery, equipment, supplies, real estate, etc.3. The company does NOT have the time or resources to manage the project4. The company hires an INDUSTRIAL ASSETS MANAGEMENT COMPANY
The goals of a TPD projectMAXIMIZE RECOVERYOF ASSETSMANAGE ALL SERVICESNEEDED TO CLOSE THEPLANT(S)COMPLETE PROJECTON TIME, WITHINBUDGET, ZERO DEFECTS1 2 3
What’s involved in a Total Plant Deactivation (TPD)?• Certified Appraisal/Valuation• Auction – Live Onsite and Online• Negotiated Liquidation• Recovery of Electrical Components• Recovery of Metals• Risk Management• Demolition• Environmental Controls• Remarketing Work-In-Process (WIP)• Sale of Production LinesThe Services
AuctionTPD ServicesWhat auction methods are used?LIVE ONSITE LIVE ONLINE TIMED EVENT• In-person liveevent• Traditional styleauction• Compete withonline customers• Auction customersmake bids onlinein real time• Compete with in-person (onsite)customers• Each lot (asset) isposted online withfinal bidding time• Bids may be placedanytime before thefinal bidding time• Lot goes to highestbidder
Negotiated LiquidationTPD ServicesWhen is it best to use this method?• When selling HIGH-VALUE assets• When selling assets with limited market appealNEGOTIATED LIQUIDATIONS give the sellermore time to compare prices and find theright buyer for specialized equipment.
Selling Production LinesTPD ServicesFor exampleit’s preferable to sell aproduction line as a singleasset.SBMA once managed acandle production line thatcould not be broken up forsale.But, sometimes…For exampleit’s best to break up theproduction lines to sellindividual parts or machinesoff the line.The parts of a paper mill lineare often easily retrofitted toa different line.In many cases…
Remarketing of Work-In-Progress (WIP)TPD Services• When a plant closes, there is often a surplus of products left(often unfinished)• TPD includes the remarketing and selling of these items,whether they are finished goods or raw materials (includingproduct parts)
Recovery of Electrical ComponentsTPD ServicesSBMA professionals can identify, recover, andsell these “hidden” assets:• Entire electrical systems• Electrical switch gear• Transformers• Wiring
Recovery of MetalsTPD ServicesSBMA professionals can assist with the recoveryof ferrous and nonferrous metals for resale.
Environmental ControlsTPD ServicesWhy is this important?• Closing a plant raises new environmental issues• Most clients have little experience with the regulatorycompliance issues that arise during a TPDWhat’s the solution?• SBMA professionals evaluate the condition of each facility toassure that the process remains environmentally sound• SBMA teams up with some of the largest and most professionalenvironmental remediation companies
Real EstateTPD ServicesSBMA can broker industrial and commercial real estate throughnegotiated sales or auctions.SBMA is not a buyer of property and assets. That’sa different kind of business. However, there havebeen particular projects that SBMA determinedthat purchasing the property and assets was theright solution for all parties involved.
DemolitionTPD ServicesIf demolition is needed, SBMA works with a large network ofexpert affiliates to handle any sized demolition job:• Full plant• Partial• Selective
Overview of the ProcessFROM A FULL PLANTTO AN EMPTY ONE
The ResultsStuart B. Millner & Associates (SBMA) is an industrialasset management company with a proven record:• Recovered over $1 billion for its clients• Completed contracts for over 450 of the Fortune 500industrial companies in the US and Canada• And more…Total PlantDeactivation
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