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SHOOT DOWN YOUR MYTHS!
Listed below are the Top Ten MYTHS and FACTS about the purchase of used equipment.
- Used equipment is not reliable - Used equipment can be as reliable as your existing equipment. It would be serviced by OEMs the same way as other equipment in your plant regardless of the fact that you bought it used. All reputable dealers would guarantee the units to be in good working order unless specified otherwise.
- There are no advantages in buying used equipment - Used equipment offers quicker delivery to get into production faster. The lower price fits into the budget to allow you to minimize capital costs.
- Only small and medium sized companies consider used equipment - Fortune 500 companies, including the largest chemical, petrochemical, and pharmaceutical companies purchase used equipment for their ongoing and new projects all over the globe.
- Documentation is not readily available for used equipment - In most cases, documentation from the previous owner is available. OEMs can supply operation manuals/drawings for a reasonable charge. Insurance coverage generally comes with proper documentation.
- The required items are specialized and cannot be located on the secondary market - Specialized equipment actually tends to be easier to source and the available sources are easier to find.
- Used equipment is sold because it has exceeded its useful life - Most equipment is available due to business decisions such as re-organization, mergers and acquisitions, changing market conditions, technology advances, environmental regulations or a shift in strategic focus rather than a plant actually reaching the end of its useful life. Generally 20 to 30 years of residual useful life is still available. Many companies build new world scale plants and decommission smaller plants that would still have many years of useful life left.
- It is impractical to relocate used equipment - Every year huge amounts of equipment are relocated and are successfully recommissioned. Complete documentation and experienced personnel make relocation viable and economical. Lower cost of engineering skills in developing countries justifies refurbishment and upgrading before re-erection.
- We cannot be confident that the equipment would perform at the design capacity and rated pressures. Glass lining may be damaged. - You can always refer to the history of the equipment when it was functional to know all the facts. The maintenance history of the equipment may be available. The unit can be spark tested for glass lining and pressure tested for jacketed vessels.
- Costs for dismantling, transportation, re-engineering and re-erection are prohibitive, even though the equipment is less expensive - As all the detailed engineering is already available, engineering costs are minimized. Containerized cargo can be transported world-wide at very competitive rates. Re-erection costs are low if the dismantling is carried out in a careful manner.
- There are safety hazards if we install used equipment - All of the equipment at your own plants is used equipment the moment the plant starts to operate. Do you consider those units as safety hazards? The same safety precautions need to be observed while installing and operating used equipment.
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