1. Market Study
Western Europe
Technical services for turnarounds in petrochemical
plants
Information
T.A. Cook Research & Studies, Berlin
May 2011

2. Information about the publisher
Authors:
Alex Lawrence
Mateus Siwek
Nina Wolfs
Editors:
Frank-Uwe Hess
Rupert Clark
Copyright:
This Publication is protected by Copyright of T.A. Cook. It may not be exploited, in whole or
part, without the approval of the publisher. This applies in particular to any forms of
reproduction, translation, microfilming and incorporation and processing in electric systems.
Publisher
T.A.Cook Consultants
Leipziger Platz 2, D-10117 Berlin
Tel.: +49 30 884207-0 | Fax: +49 30 884307-30
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3. Table of study contents (1)
TABLE OF CONTENTS 3
1 MANAGEMENT SUMMARY 16
2 OBJECTIVES AND SCOPE 63
2.1 BACKGROUND 63
2.2 MOTIVATION 63
2.3 STUDY OBJECTIVES/QUESTIONS 64
2.4 METHODOLOGY 65
2.5 SAMPLE COMPOSITION 71
2.6 PROBLEMS AND LIMITATIONS OF THE STUDY 79
2.7 TERMINOLOGY 80
2.8 INTRODUCTION TO TURNAROUNDS 83
3 FRAMEWORK CONDITIONS 93
3.1 LEGAL FRAMEWORK CONDITIONS 93
3.2 ECONOMIC FRAMEWORK CONDITIONS 100
3.3 SPECIFIC TURNAROUND REQUIREMENTS IN THE PETROCHEMICAL INDUSTRY 118
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4. Table of study contents (2)
4 OPERATORS OF PETROCHEMICAL PLANTS 131
4.1 OVERVIEW 131
4.2 COMMERCIAL ASPECTS OF SHUTDOWNS & TURNAROUNDS 142
4.3 ANALYSIS OF DEMAND VOLUME 143
4.3.1 Factors Determining Demand for Technical Services 143
4.3.2 Calculation of Current Market Volume 147
5 SPECIFIC SERVICES FOR TURNAROUND PROJECTS 157
5.1 PROJECT MANAGEMENT 160
5.2 MECHANICAL WORK 168
5.3 ELECTROTECHNICS/ INSTRUMENTATION & CONTROL TECHNOLOGY 188
5.4 SAFETY ENGINEERING 191
5.5 INSPECTIONS 195
5.6 INFRASTRUCTURE/LOGISTICS 198
5.7 SCAFFOLDING 202
5.8 CLEANING OPERATIONS 203
5.9 REFRACTORY LINING OPERATIONS 205
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5. Table of study contents (3)
6 BUSINESS AND ORGANISATIONAL MODELS FOR SERVICE PROVIDERS 207
6.1 STRUCTURE OF TECHNICAL SERVICE PROVIDERS 207
6.1.1 Historical Development 207
6.1.2 Classification of Service Providers 211
6.2 THE DEMAND CONFLICT FOR TURNAROUNDS 220
6.2.1 Too Many or Too Few Projects 220
6.2.2 Ways Out of the Demand Conflict 222
6.3 TAR SERVICE PROVIDER BUSINESS MODELS 226
6.3.1 Basic Business Models 226
6.3.2 Relationship Models between Plant Operators and Technical Service Providers 232
6.3.3 Payment Models 239
6.4 SELLING & MARKETING TURNAROUND SERVICES 242
7 TURNAROUND SERVICE PROVIDERS 249
7.1 THE TOP 25 TAR SERVICE PROVIDERS 249
7.2 DYNAMICS AND CURRENT DEVELOPMENTS IN COMPETITION 324
7.2.1 Distribution and Reach of Service Providers through Western Europe 324
7.2.2 Service Provider Market Positioning 342
7.2.3 Competition in Specific Turnaround Trades 349
7.2.4 Trends in Market Developments 362
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6. Table of study contents (4)
8 FUTURE TRENDS, STRATEGIES AND SCENARIOS 371
8.1 MARKET DEVELOPMENT TRENDS 371
8.1.1 Development of Demand through 2020 372
8.1.2 Impact of Capital Projects 378
8.1.3 Changes in Turnaround Strategy 380
8.1.4 Development of Organisational Cooperation 385
8.1.5 Competition and Market Developments 391
8.1.6 Influence of Technological Developments 400
8.2 DEVELOPMENT PERSPECTIVES AND POSSIBLE MARKET SCENARIOS 402
8.2.1 Scenario 1: Dominant Service Provider 404
8.2.2 Scenario 2: Mobile Turnaround Networks 406
8.3 STRATEGIC COURSES OF ACTION 408
9 APPENDIX 413
9.1 ILLUSTRATIONS 413
9.2 INDEX OF TABLES 417
9.3 REFERENCE MATERIAL 418
9.4 OPERATOR PROFILES OF PETROCHEMICAL PLANTS 419
9.5 COMPANY PROFILES OF SELECTED SERVICE PROVIDERS 598
9.6 TABLE OF SUPPLIERS 671
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7. Study Objectives/Questions
Who exactly are the customers of technical What types of contracts have been most
services for turnarounds and how large is common in this sector to date and which
the annual volume of contracts awarded will become more important in the future?
each year for turnaround services in the What requirements do technical service
petrochemical industry? companies have to fulfil in order to achieve
Who are the suppliers in this market a significant position in the market for
segment, what services do they offer and TARs?
how are they positioned in the market? What opportunities are there for large and
How will demand and supply develop until small providers of technical services to
2020? strategically position themselves?
How has competition between technical How do international trends affect service
service providers developed? companies in Western Europe on the long
What economic conditions and legal term?
requirements determine the market for
turnarounds in petrochemical plants?
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8. Target groups
173 P lant Operators
Petro- Refine- Cracker
chemical ries
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9. Target groups
461 technical Service P roviders
6
5 3
Distribution of studied 5
79 126
service providers
through Europe 141
23
Home/main countries
only
2
48 1
13
6
3
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10. TAR demand in Western Europe
TAR dem and volum e in W estern Europe is about 2900 m illion € per year
Petrochemical plants
722
(24.8%)
Cracker
254
(8.7%) Detailed description,
analysis and figures on
TAR cycles, frequency
and dates can be found
in the study
Refineries
1935
(66.5%)
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11. TAR demand in Western Europe
Graphics on the
number of plants,
TAR volumes,
capacities and many
more can be found in
the study.
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12. Future Trends
W hich trends w ill influence Turnarounds in the future?
Decreasing prices due to competition 3% 9% 30% 33% 24%
Long term partnerships between plant operators and main contractors 9% 18% 58% 15%
Outsourcing Turnaround project management and planning 19% 16% 44% 22%
Tougher safety requirements / regulations 15% 36% 27% 21%
Increasing share of additional projects 21% 38% 28% 14%
Increasing availability of components 9% 32% 32% 26%
Shortening downtime 6% 15% 47% 32%
Longer periods between Turnarounds 3% 29% 44% 24%
0% 20% 40% 60% 80% 100%
Not important Low importance Important Very important Essential
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13. Mateus Siwek
Senior Research Consultant
T.A. Cook Research & Studies
Leipziger Platz 2
10117 Berlin
+49 (0) 30 88 43 07-0
M.Siwek@tacook.com