Operating Costs in the Chemical Industry

Published January 1998

Over the past two decades, significant changes have occurred in chemical plant operations. New maintenance practices such as predictive maintenance have enhanced the cost-effectiveness of that function while at the same time improving plant reliability. New control and information technology has improved the efficiency of plant operators and has also provided the potential for dissemination of plant information throughout the organization.

This supplementary report reviews the important technical and economic progress made in fixed operating cost elements since PEP Report 140, Operating Costs in the Chemical Industry and their Estimation, was issued in April 1981. To determine new industry trends in this field, SRIC conducted a quantitative industry survey in 1996, and the results of that survey serve as the basis for this report.

The report reviews the following fixed operating cost elements:

• Operating labor
• Maintenance costs
• Plant overhead
• Capital-related elements such as taxes, insurance, depreciation, and working capital
• General, administration, selling, and research costs.

Operating cost correlations are presented on a U.S. basis for both chemical intermediate plants and specialty chemical plants. Productivity trends for several other industrial countries are also presented.

This report will be useful for those throughout the chemical industry who need to estimate operating costs for new or existing plants.

Other PEP Related Reports

• Operating Costs In the Chemical Industry 140