Chemical Plant - Ethanol Recovery Unit Dismantlement & Relocation - Coors

06/09/2023
Dan O’Leary
Plants & Equipment Purchases
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From Surplus Brewery Equipment to Whisky Distillery Expansion

Every process improvement leaves something behind. Sometimes it is an outdated procedure. Sometimes it is a process system that no longer fits the operation, even though it still has years of useful service ahead of it.

That was the situation at the Coors Brewery in Golden, Colorado. Changes to the brewery’s production process eliminated the need for a 1.5 MMGPY ethanol recovery unit that reclaimed ethanol from waste beer and other alcohol-containing process streams. Although it no longer fit Coors’ operations, the lightly used system still had years of useful service ahead of it.

Finding the right buyer became the critical step. The system needed a manufacturer whose production process and expansion plans aligned with its capabilities. Phoenix Equipment began identifying potential buyers while discussions to acquire the unit were still underway.

 

Why Phoenix Purchased the Unit

Specialized process systems rarely have a broad market. Their value depends on identifying manufacturers whose production processes and expansion plans align with the equipment, often before it ever reaches the open market.

Phoenix began identifying potential buyers while discussions to acquire the unit were still underway. That early market knowledge gave Phoenix the confidence to purchase the unit outright, remove it according to Coors’ project schedule, relocate it to Texas, and begin marketing it to qualified buyers worldwide.

 

Project Overview

Built in 2018 and operated until 2019, the unit recovered ethanol from waste beer and other alcohol-containing process streams, allowing valuable product to be reclaimed rather than discarded.

Because it had seen relatively little service, the system presented an attractive opportunity for manufacturers looking to expand processing capacity without purchasing a comparable new unit.

 

Finding the Right Buyer

Selling a complete process system is fundamentally different from selling individual pieces of equipment. The pool of potential buyers is much smaller. Success depends on identifying manufacturers whose production requirements closely match the system being offered.

That search ultimately led to an established whisky distillery in Ireland that was expanding production capacity.

For the distillery, acquiring an existing unit provided a faster and less expensive path to expansion than purchasing a comparable new system. New fabrication would have cost more than twice as much and required a lead time of more than one year.

The buyer moved quickly. After placing a deposit to secure the unit, representatives traveled to Texas to perform due diligence and inspect the equipment. A purchase order followed immediately after the inspection. From acquisition through sale, the transaction was completed in approximately four months.

 

Preparing the Unit for Relocation

Following the sale, Phoenix managed the unit’s relocation to Ireland.

The project included dismantlement at the brewery, transportation to Texas, export packing, inland and ocean freight, and delivery to the destination port in Ireland. The buyer then assumed responsibility for installation and commissioning.

Throughout the project, Phoenix met Coors’ removal schedule while coordinating the international logistics required to deliver the system overseas.

 

Project Outcome

The transaction created value for every party involved.

Coors recovered value from a process system that no longer supported its manufacturing strategy while meeting its project timeline. The buyer acquired additional processing capacity at significantly lower capital cost and with substantially less lead time than purchasing a comparable new unit.

Phoenix’s understanding of the market for specialized process systems made the transaction possible by connecting a seller with surplus equipment to a buyer ready to expand production.

Industrial facilities constantly evolve as products, processes, and business priorities change. Those changes create surplus assets that still have years of productive service ahead of them. The challenge is identifying where those assets fit next and putting them back to work.

 

References

Plant Subcategory : Ethanol Plants
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