CONSTRUCTION/TURNAROUND JOB TO DOUBLE PLANT’S CAPACITY
Zachry and JVIC, a Zachry Group company, are taking on a project that showcases their distinctive capabilities by combining construction and turnaround work in one job. The project is part of a larger ethylene expansion program that LyondellBasell, one of the world’s largest plastics, chemical and refining companies, has launched for its plants in Channelview, La Porte and Corpus Christi, Texas.
The work involving Zachry and JVIC will double the production capacity of LyondellBasell’s Corpus Christi petrochemical facility. This plant produces ethylene, propylene and fuel products that form the basic chemical building blocks used in consumer products, such as plastics for food packaging and containers. The project represents yet another outgrowth of the heightened drilling activity along the Eagle Ford shale formation in South Texas.
NEW PROJECT, FAMILIAR TERRITORY
While the project is new, the client relationship is well established. Zachry’s Industrial Services Group (ISG) has provided maintenance services at the plant for approximately 15 years, and JVIC has performed turnarounds there since 2004.
“Because of the relationships on both sides, I think it gives Lyondell a level of comfort to have Zachry and JVIC tackling this big endeavor together,” said Bruce Hessler, vice president, project controls for JVIC. “Certainly, Zachry’s strength in construction is just huge, and JVIC’s experience and knowledge in turnarounds, especially with regard to the way Lyondell does business, is paramount also.”
PERFECT PAIRING FOR RARE PROJECT MIX
When Zachry acquired JVIC in 2012, it was a strategic partnership designed to add the country’s best, most in-depth turnaround expertise to Zachry. JVIC is a recognized industry leader in turnarounds, which are scheduled outages at industrial facilities that allow for repair, servicing or upgrades.
While Zachry offers turnaround services as part of ISG’s continuous-presence work for maintenance clients, JVIC focuses strictly on turnarounds in the petrochemical and refinery industries. JVIC not only complements Zachry’s established lines of business, but adds highly specialized skills that Zachry didn’t offer before, such as catalyst services.
“We really make a great team,” Hall said. “Zachry can go in and do large construction jobs and can rely on JVIC for the turnaround work. Acquiring JVIC strengthened the business as a whole, so now we’re a one-stop shop.”
This arrangement also provides other advantages to clients. For example, because so many services are available under the Zachry flag, subcontracted work is kept to a minimum, creating cost efficiencies by avoiding overhead from subcontractors.
MUTUAL BENEFITS
Since the acquisition by Zachry, JVIC has retained its independent structure and brand, as well as its own employees. On the LyondellBasell project, a borrowed employee agreement between Zachry and JVIC allows employees of both companies to easily transition over to the project while maintaining their current employee status. This approach allows project leaders to easily tap the right people for the job.
“I think the two companies are breaking new ground in taking on a project like this. It’s really a joint venture within the larger company,” Hessler said.
Both groups stand to gain from the opportunity to learn from each other as they work side by side on the project.
This blog is an excerpt from the March/April 2015 edition of the Force Report. You can read the entire article here.