Procurement – Effective Management is Key to Success

Linde Engineering is a global leader in plant construction with a proven track record in the delivery of turnkey industrial assets. Smooth and efficient assembly of contractual plants and plant components on site hinges on an optimized procurement organization. Our success here shows that this extends much further than buying goods and getting them from A to B.

It All Starts with a Detailed Project Plan

As our name suggests, we specialize in the precision engineering of high-performance process components and tailor-made industrial plants. But our work does not stop there. Once completed, this equipment and the high-quality components we source from our suppliers have to be carefully transported to where they are needed, on time – whether that be to our own fabrication yard or our customer’s production site. And this is where Linde’s procurement specialists come in. Their work starts as soon as the customer signs the dotted line. They prepare a detailed plan to ensure the success of all subsequent construction and assembly steps. Linde Engineering operates seven procurement centers in different regions across the globe – thus ensuring close proximity to the various suppliers and partner companies that work for and with us. We have a wealth of experience as a one-stop provider of industrial plants and, as general contractor, excel at professionally managing the entire engineering, procurement and construction process flow.

Mastering Logistical Hurdles

Our global team masters even the most challenging projects. The nitrogen rejection unit (NRU) we built for a customer in Australia is a prime example here. This unit was integrated into one of the country’s largest natural gas plants in order to increase the calorific value of the natural gas. Reaching beyond the technological challenges, Linde Engineering’s procurement team also successfully overcame all logistical and organizational hurdles in this complex project. Highlights of this project included the modular design of the NRU. The four modules were assembled in Tarragona, Spain, under the supervision of Linde’s engineering team at Schalchen, Germany. After this, the NRU was shipped practically ready-to-run from Europe to Australia. Our engineers had to plan and manufacture a host of different plant components to meet the special conditions on site and so the entire project had to be exceptionally well coordinated. On completion of the manufacturing work, the procurement team was responsible for coordinating the order process to ensure each part is available at Tarragona for assembly – precisely when it is needed.

Modularization was also the key to success when we were asked to transport an ethylene cracking furnace. Logistics and timelines are even more important when it comes to modular designs. Which is why the procurement team makes sure from the very beginning that subcontractors, partner companies and shipping firms can also meet the high-quality standards and schedules required for the project. Linde has continued to strengthen its technical expediting capabilities in recent years and expanded its global reach. The parts for the cracking furnace, for example, were sourced from over a dozen countries. We process around 30,000 orders a year and have developed a platform to streamline communications and the process flow. Suppliers can upload their data and documents, and the system automatically checks that the subject matter is correct.

Trained for Sprint Runs

In many cases, our projects are run to extremely tight deadlines. A project perfectly illustrates how Linde Engineering works professionally, reliably and successfully even under extreme time pressure. An industrial complex for producing, storing and transporting liquefied natural gas (LNG) was built at record speed. The plant was designed to have an annual capacity of around 1.5 million tons of LNG per year. As part of this project, our engineers rapidly constructed an LNG storage tank. Speed was a top priority for the customer and future operator of the plant and so our engineering and procurement experts drew up an ambitious timeline for the project that would see the 42,000 cubic meter tank built in just 22 months. This called for special construction technologies. The outer tank, for example, which is 30 meters high and 60 centimetres thick, was erected by sliding the concrete wall upwards. This project also called for close and productive collaboration across teams from different companies. This meant that our experts had to efficiently and continually coordinate timelines, and maintain close contact with all subcontractors. The success of this project is proof that all technological and logistical processes dovetailed to perfection, confirming Linde Engineering’s reputation as a reliable, flexible partner.