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www.ostchem.com

INCONCEIVABLE WITHOUT FERTILIZERS

Seemingly endless fi elds stretch to the right and left of the bumpy road—as far as the eye can see. Wheat, corn and sunfl owers dominate the landscape of the Ukraine in the summertime. Small towns and hamlets, rows of trees and forests only sporadically break up the vastness on the 125-mile trip from Kiev to Cherkassy. Being one of Europe’s breadbas-kets, the Ukraine has very fertile Chernozem and loess soils. The fi elds that are cultivated here are among the highest yielding in the world and account for some 60 percent of the country’s useful agricultural area. Covering 233,000 square miles, the Ukraine continues to be primarily an agricultural country. TEXT: MARCUS GEIGLE

PHOTOS: SERGEY MINENKO

T he Ukraine is not only a successful agricultural country, it is also one of

the leading producers of fertilizers worldwide. In Cherkassy, an industrial

city home to approximately 290,000 inhabitants on the Dnjeper river

forming the Kremenchuk Reservoir as a result of a dam, OSTCHEM

operates one of the largest fertilizer factories in the world. Here, 4,500

employees produce 2,900 tons of liquid ammonia on a daily basis, which is

directly processed into urea/ammonium nitrate, and consequently into fertilizer.

The industrial complex commissioned in 1986 has visibly come of age. The

compressor fleet of OSTCHEM’s production in Cherkassy, however, is being

serviced and maintained with all available means. The five 6,650-kilowatt

Creusot Loire compressors reliably assure the production of liquid ammonia

around the clock, which is used to produce different fertilizers after passing

through additional processing stages.

Tough competition

OSTCHEM is presently lacking the funds to replace the veteran compressors:

“Competition is tough, not only here in Eastern Europe, but worldwide,” explains

Alexey Burov, chief technician in charge of compressor maintenance in the

Cherkassy plant. “Rising raw material prices are putting us under pressure. The

dependence on commodity prices dictates our margin and limits the funds we

have available for investments. As a result, we need strong and courageous

partners who open up new avenues for us to equip and upgrade the existing

production equipment, so that we can continue to successfully operate on the

global market. The experts from HOERBIGER make this possible.” In the best case

scenario, the compressors made by Creusot Loire run around the clock. The

planned production volumes leave little room for downtime. There is only one re-

placement compressor for backup.

During the conversation Alexey Burov under-

scored that on that day he had to operate four

compressors at full load. To assure this target is

met, he has to minimize downtime to the great-

est extent possible. When two compressors fail,

the full production volume is no longer assured.

The greatest risk is that a fault may cause

several compressors to give out. Nonetheless,

high financial risks loom already when a single

compressor is not operational: switching over to the

backup compressor takes approximately half an

hour. Lost production during this time is some six

tons of liquid ammonia. At the same time, 6,600

cubic meters of natural gas have to be burned off.

This too involves a high loss for OSTCHEM.

Reliability, efficiency or environmental

sustainability—What matters really?

Of late, such failures occurred frequently. It was

high time to initiate improvements that enabled

greater reliability of the compressors.

“In our fiercely competitive situation, the times

are long gone where all you have to do is optimize

production alone, efficiency alone, or environ-

mental sustainability alone,” says Alexey Burov.

“We reached the point some time ago where we

have to consider all three components for

success. And believe me: reliability, efficiency

and environmental sustainability combined now

are like a common success factor for us.”

REE Audit opens eyes, ears ...

and contributes to a greater understanding

The Service Team of HOERBIGER has recog-

nized this and developed the REE Audit, a new

consulting approach for operational challenges

such as those encountered by OSTCHEM.

REE denotes Reliability, Efficiency and Environ-

mental Soundness —three decisive aspects for a

modern range of services in compression tech-

nology. In new compressor construction, state-

of-the-art components are intended to guarantee

continuous performance increases, greater

reliability, and steady progress in environmental

compatibility. But how can experts assess the

reliability, efficiency and environmental compati-

bility of compressor installations? How can data

gathered during an audit be evaluated, and the

findings gained in the process be turned into

concrete improvement actions?

“I said in no uncertain terms in the beginning

that we are a manufacturing operation, that my

people and I are used to being hands-on, and

that we are used to solving problems and

machine stoppages with heavy tools. A consulta-

tion as well as process and machinery analyses

were not really our first choice,” adds Alexey Burov.

Consultation in overalls—

Words turn into action

Hervé Ferraris, Pavlo Gusiev, Andrey Minyailo

and Yaroslav Rahkandiya were on site as a team

and are all too familiar with this attitude. The

HOERBIGER REE Team has to convince those

who are practically-minded with compelling

arguments in almost any consultation. The team

is very successfully doing so: since the launch of

the REE Audit initiative in October 2012,

The administrative building of PJSC Cherkassy Azot, a key fertilizer production plant for

fertilizers of OSTCHEM.

OSTCHEM

OUR DAILY

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they have conducted more than 30 analyses

around the globe and audited 160 compressors.

Hervé Ferraris says: “The idea originated from a

customer in India. He explained that the opera-

tors of compressors frequently have no idea of

the improvement potential of their machines.

Many customers don’t know where improve-

ments can be realized and how appropriate

action can be taken. Because previously we

always fared well with suggestions from custom-

ers, we picked this one up too. We began to

develop a system that would provide the customer

with a transparent analysis of the existing

systems and processes as well as clearly defined

improvement potentials. The consulting product

we developed based on this is the HOERBIGER

REE Audit.”

Let’s get back to OSTCHEM in Cherkassy: “The

term REE Audit alone sounded somewhat

pretentious to me in the beginning,” says Alexey

Burov. “But I did not want to leave any stone

unturned to improve our performance. And so I

listened to the suggestions made by HOERBIGER

together with our very experienced technicians.

The approach was convincing to me. And

the prospects that HOERBIGER highlighted

excited me.”

And Alexey Burov is not stingy about praise:

“Nikolaus Lubega and Tivadar Asztalos from

HOERBIGER did a fantastic job. It wasn’t one of

these familiar high-gloss PowerPoint presenta-

tions with predictable content. We looked in the

mirror together and asked ourselves the ques-

tion: ‘What do we need to do to be ahead of the

competition?’ The fact that an outsider, solely

based on an intensive inspection of the com-

pressors and after talking to the technicians and

the people in production, was able to find so

much improvement potential in such a short

time was very impressive—and above all helpful.

We knew our obvious problems. Looking at the

details, the REE Audit additionally opened up

new possibilities and options.”

The REE Auditor from HOERBIGER found high

wear on the Creusot Loire compressors as a

result of a bent piston rod. Improvements in the

lubrication were another starting point. The

guides of the pistons in the cylinder at OSTCHEM

had been soldered on with Babbitt metal, causing

the guides to wear very rapidly. In addition, the

increased abrasion adversely impacted valves

and packings. The audit identified a modern

solution with low-wear plastic rings. In the process,

an important added benefit was achieved: the

cylinder lubrication was able to be reduced, which

will positively affect the service life of the catalyst in

the reactor due to minimized impurities.

Four steps, controlled by the customer,

toward the improvement project

The HOERBIGER REE Audit follows the simple

principle of analysis, assessment and develop-

ment of action based on the status quo of exist-

ing equipment. The engineers from HOERBIGER

have developed a multistage concept to make

this principle suitable for practical and everyday

use in Service in the spirit of a powerful consult-

ing approach. The process begins with the actual

REE Audit, where the compressors in question

are analyzed in detail on site. A standardized report

highlights the improvement potential, and a

so-called REE Index transparently identifies the

influencing factors on a range from one to ten.

The REE Index Tool computes the individual

improvement potential for every compressor that

is analyzed. The individual results as well as an

overall assessment are presented to the customer

and discussed. After presentation of the status

quo, the customer personally decides where he

sees the most urgent need for improvement.

The HOERBIGER experts then draft a detailed

development study for the compressors selected

by the customer. The proposed solutions always

show the concrete return on investment (ROI). In

addition, they are combined with total cost of

ownership (TCO) scenarios. The suggestions

developed by HOERBIGER range from the targeted

replacement of inefficient components to a

complete revamp of the compressor design. The

customer decides which steps fit his investment

planning and specifies where improvements will

be made through upgrade or revamp projects.

ALEXEY BUROV

HEAD OF COMPRESSOR

MAINTENANCE AT OSTCHEM

Alexey Burov (39) is a Senior

Engineer at PJSC Cherkassy Azot,

which is part of the OSTCHEM

Holding AG. He studied chemical

engineering at a Ukrainian state

university from 1991 to 1996, and

acquired his Master in Industrial

Maintenance in 1998. Alexey

Burov then worked for Rivne Azot

and Rustavi Azot until 2004,

whereupon he was hired by

Cherkassy Azot as a maintenance

engineer. After two years, he

became Deputy Chief Mechanic

of PJSC Nitrogen. He has been the

Chief Engineer of PJSC Cherkassy

Azot since 2008.

“OSTCHEM’s top management sees that investments in a REE Audit pay for themselves quickly, and what’s more—they enable us to not only strengthen our leading market position, but expand it.”ALEXEY BUROV

HOERBIGER then implements the projects in the

desired time frame based on these specifications.

At OSTCHEM, the HOERBIGER experts encour-

aged projects to achieve so-called “quick wins”

immediately after the REE Audit. This included

replacing the rings and packings as well as the

suggestion to redesign the piston geometry.

Quickly wearing piston packings that had been

repeatedly patched with makeshift

3 Five high-capacity compressors form the

heart of the plant commissioned in 1970. In

addition to the size, their performance so far is

impressive: over the course of some 40 years,

these machines have compressed the raw

materials for millions of tons of fertilizer.

2 The team on site: Pavlo Gusiev, Andrey

Minyailo and Yaroslav Rahkandiya.

1 The reactor for urea production dominates

the company building in Cherkassy.

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PARTWhile the majority of operators of reciprocating compressors are satisfied

with the performance capability of their systems, they still feel that things

could somehow be even better. HOERBIGER has developed the REE Audit

to substantiate this feeling with data and identify concrete improvements.

The HOERBIGER REE Audit quickly, accurately and objectively provides a

valid basis for effectively upgrading existing compressor systems. With the

analysis, the HOERBIGER auditors paint an accurate picture, in every

detail, of the status quo in terms of efficiency, reliability and environmental

sustainability. The HOERBIGER experts analyze the compressor design,

operating conditions, maintenance and downtimes. This is followed by a

precise report showing a benchmark compared to leading plants as well as

improvement and savings potentials that were identified. The customers

ultimately decide on their own which improvements they would like to

implement. HOERBIGER supports the projects directly on site (see on right).

PART OFDemand for fertilizers has continually risen as a result of a doubling of the

worldwide population over the last 50 years. Fertilizers are the most important

and most cost-efficient option for boosting the yields of useful agricultural

areas over the years. Ammonia is a key base material for the production of

nitrate-based fertilizers. In 2011, the worldwide production of ammonia

amounted to 136 million tons, and this trend is likely to continue. High raw

material prices, such as for the natural gas that is required, have led to

fierce global competition in the fertilizer industry. The sector is dependent

on continual improvements in efficiency, reliability and environmental

sustainability of existing plants and compressors. Only in this way can they

maintain their margins. OSTCHEM is a leading manufacturer of fertilizers

in Eastern Europe, and four production sites in Cherkassy, Gorlovka,

Sievierodonetsk and Rivne make it a market leader in the Ukraine. With

4,500 employees, Cherkassy is the largest fertilizer factory in the country.

PARTNERSHIPOSTCHEM has been a customer of HOERBIGER for close to ten years

and uses a wide range of compressor components such as valves, rings

and packings. Because of steadily rising competitive pressure, Head of

Maintenance Alexey Burov expanded the partnership with HOERBIGER by

having a REE Audit conducted. The improvement potentials identified in

the REE Audit as well as the promptly conducted upgrade projects have

reduced downtimes by 70 percent, increasing reliability. Additionally, the

efficiency of the plant was able to be increased due to the process analysis.

OPTIMIZATION AND UPGRADE OF RECIPROCATING COMPRESSORS

The new REE Assess-ment Process supplies not only clear data on the actual perfor-mance of the com-pressor, but also evaluates a plant in terms of the potential for improvements and savings. TEXT: MARCUS GEIGLE

T oday, creating a healthy balance between

economy and ecology ranks highly in many

companies. Legacy installations usually no

longer run cost-effectively and needlessly

burden the environment. On the other hand, new

machines are associated with high investment costs

and consume significant resources. When it comes to

reciprocating compressors, customized revamps are a

sensible alternative. Select components are replaced

with proven and innovative technology. This saves

significant costs, improves the energy balance and

reduces the impact on the environment. Moreover, a

well-planned project aimed at extending the service life

of the plant through a revamp usually allows the system

to be back in operation considerably more quickly than

with a new purchase and installation. It is important to

maximize the potential of existing systems because

oftentimes these have advantages with respect to

continuous operation as compared to new equipment

that features standard designs.

In many areas of technology today, reciprocating

compressors are the equipment of choice for the

compression of a wide variety of gases. Because this

technology is robust and development progresses, older

plants often no longer employ state-of-the-art technology.

Here the option exists to bring compressors up-to-date

and thereby improve the reliability, efficiency and

environmental sustainability of these machines. Other

objectives/solutions such as process changes, process

stability, concrete solutions, machine protection and

standardization may be pursued as part of such

upgrade projects.

Experienced HOERBIGER compressor experts conduct

REE Audits on site to gain an idea of the design,

operating conditions, maintenance work and failures of

each compressor. The detailed report identifies the

performance of every compressor as well as its REE

index, including improvement and savings options. The

REE Assessment, which can be carried out on any

reciprocating compressor worldwide, helps operators

to select the right technology and make the right

decisions for their business.

solutions and caused regular failures were replaced

with modern high-performance packings made by

HOERBIGER.

Proximity and quality

Alexey Burov sums it up: “The proximity to the HOERBIGER

REE Team is an important factor for me. There are certainly

plenty of service companies that could keep our compres-

sors running. But there is no other service partner in the

Ukraine who is never satisfied with the degree of improve-

ments that have been achieved based on his own service

understanding and continues to maximize performance.

This is a huge advantage when it comes to HOERBIGER.

The comprehensive expertise and the ability to supply

suitable components from their in-house production for all

the improvements round out this very future-oriented

service offered by HOERBIGER. I look forward to harvest-

ing the fruits of the improvement projects established by

the REE Audit.”

Rarely seen in the industry: the chemical formulas for

ammonia and bicarbonate are represented on the lead glass

window of a production building of PJSC Cherkassy Azot.