【In-depth Discussion on Modular Installation of HaiChuan】Great Article – A Brief Analysis of the Trend Toward Modular Steel Structures in Overseas Projects

Due to its advantages and wide applicability, modular construction is increasingly favored by project owners, investors, as well as general contractors or EPC/EPCM firms: it increases labor productivity, enables parallel construction in various locations regardless of climate or geographical conditions, accelerates the project completion timeline and thus helps investors achieve returns more quickly; it reduces the need for extensive on-site support and minimizes repetitive tasks. There is also a well-developed supply chain system – for items such as steel structures, pipes, fittings, pressure vessels, raw materials, design services, and logistics – which can generally meet customer requirements. Almost all operations can be carried out at the modular construction site, resulting in much higher efficiency compared to on-site construction; it also reduces the need for large-scale scaffolding work on site. Additionally, centralized installation reduces the frequency of safety accidents. Given all these advantages, modular construction is now widely used in projects where labor costs are high, the workforce is scarce, project deadlines are tight, rapid returns are required, and the project sites are located near coasts or rivers, in areas with large-scale mining, petrochemical, LNG, oil sands, industrial facilities, and FPSO projects. Looking at the current situation, due to favorable climate and geographical factors, many EPC/ECPM companies in the past located their modular business operations in Southeast Asia and the Gulf Coast regions. Modular development in these areas started early, and the understanding of this business model there is relatively advanced ； However, over the past 10-odd years, a number of new module reassembly companies have emerged in China. By leveraging China’s advantages in speed, efficiency, and resource availability, they have rapidly caught up with overseas module equipment manufacturers, becoming the preferred choice for international EPC/EPCM firms and project owners.

At present, module companies in our country are mainly concentrated along the Bohai Sea coast, in Qingdao of Shandong Province, as well as in the Yangtze River Delta and Pearl River Delta. They can be roughly divided into the following four categories: The first category consists of companies that were originally involved in steel structure manufacturing; taking advantage of their locations near seas and riverbanks, they expanded their supply chains and thus became comprehensive suppliers for both steel structure manufacturing and module prefabrication. Initially, such companies were mainly found in Southeast Asia. Some domestic steel structure companies have also begun to move towards modular reassembly ； Category 2: It originated with pressure vessel manufacturers; due to the convenience of assembly and transportation, buyers incorporated the contracts related to steel structures into the scope of the contracts for pressure vessel production, and this practice gradually developed over time ； Third category: Super-large modular companies that have been developed in collaboration with long-term clients, by taking advantage of existing favorable equipment and facilities (especially those available in shipbuilding companies), products, as well as ample space. Fourth category: Given the increasingly fierce competition among EPC/EPCM companies, large international EPC/EPCM firms either participate in bids together with their own modular companies, or they invest directly to form joint ventures with capable modular companies in order to build their own modular production facilities. This approach not only meets the needs of their own projects but also allows them to compete for bids on other international projects, thereby enabling one-stop procurement.

At present, module companies in our country are mainly concentrated along the Bohai Sea coast, in Qingdao of Shandong Province, as well as in the Yangtze River Delta and Pearl River Delta. They can be roughly divided into the following four categories: The first category consists of companies that were originally involved in steel structure manufacturing; taking advantage of their locations near seas and riverbanks, they expanded their supply chains and thus became comprehensive suppliers for both steel structure manufacturing and module prefabrication. Initially, such companies were mainly found in Southeast Asia. Some domestic steel structure companies have also begun to move towards modular reassembly ； Category 2: It originated with pressure vessel manufacturers; due to the convenience of assembly and transportation, buyers incorporated the contracts related to steel structures into the scope of the contracts for pressure vessel production, and this practice gradually developed over time ； Third category: Super-large modular companies that have been developed in collaboration with long-term clients, by taking advantage of existing favorable equipment and facilities (especially those available in shipbuilding companies), products, as well as ample space. Fourth category: Given the increasingly fierce competition among EPC/EPCM companies, large international EPC/EPCM firms either participate in bids together with their own modular companies, or they invest directly to form joint ventures with capable modular companies in order to build their own modular production facilities. This approach not only meets the needs of their own projects but also allows them to compete for bids on other international projects, thereby enabling one-stop procurement.

Thanks to the development of river coastlines, roads and bridges, as well as logistics and transportation facilities, a streamlined supply chain offering efficient services for the construction, lifting, loading onto ships, land and sea transportation, and installation at the construction site is established for these modules. Of course, modular projects require higher standards than usual in terms of river and coastline conditions, backsite areas, and equipment capabilities. The project timeline is long, which demands a high level of cooperation and coordination among the enterprise and the project’s comprehensive management team. The risk management issues include: business risks such as delays in the project schedule due to modifications or changes in materials and drawings; risks associated with different projects and implementation standards, as well as differences in understanding among local engineers and challenges in working with subcontractors; risks related to exchange rate fluctuations during module construction; trade tariff risks related to imports and exports; risks stemming from rising labor costs and capital constraints; and risks resulting from conflicts between different cultural and management approaches

Over 20 years ago, many foreign companies from Japan, South Korea, the United States, and Canada successively established wholly foreign-owned enterprises for steel structure manufacturing in China. Most of them focused on exporting to high-end markets as well as serving the petrochemical projects of multinational companies in China, dealing primarily with prefabricated steel structures. After more than 20 years of development, they have earned high recognition from many end-users and engineering companies in the industry through their strength and quality, and have also built a large team that understands the quality requirements for overseas projects, is familiar with international standards, and possesses extensive experience in production. However, in the face of the growing trend toward maturity and increased demand for global standardized modular steel structures, traditional methods of manufacturing steel structures from individual components also begin to show their disadvantages in response to customers’ new requirements. Many companies, while fully maintaining their existing brand advantages, have actively pursued transformation and upgrading, made timely strategic adjustments, increased the proportion of modular reconfiguration, and prepared to provide high-quality services to customers in the long term. Article author: Shanghai Matsuo, Michael Lin

More people are welcome to participate in the discussions of this series. Everyone is invited to join the upcoming sharing and discussion sessions; clicking on the link will take you there. -------------------------------------------------------------------------- This is a summary post for the 【Guess the Haichuan Equipment】 series – all equipment enthusiasts are encouraged to get involved! https://bbs.hcbbs.com/thread-2079686-1-1.html (Source: Haichuan Chemical Industry Forum) Summary post of the 【Haichuan. Pioneers in the Chemical Industry】 series. https://bbs.hcbbs.com/thread-1842627-1-1.html (Source: Haichuan Chemical Industry Forum) Summary post for the 【In-depth Discussion on Modular Installation in Haichuan】 – everyone is welcome to participate in the discussions! https://bbs.hcbbs.com/thread-1773168-1-1.html (Source: Haichuan Chemical Industry Forum) The compilation posts of the 【Guess the Haichuan Ingredients】 series are being updated continuously – with thousands of different foods, can you recognize them all? https://bbs.hcbbs.com/thread-2142205-1-1.html (Source: Haichuan Chemical Industry Forum) [Haichuan Chemical Industry Site] Compilation post on nitrate caves – why did ancient people produce nitrate in caves? ? https://bbs.hcbbs.com/thread-2145992-1-1.html (Source: Haichuan Chemical Industry Forum Website)

It’s written perfectly. We were among the first manufacturers in the country to produce modular blocks. Currently, modular skids are being widely used in China. What I want to say is, please send me that article, haha @FishInTheDesert

Which article? This is an article shared by Shanghai Sensong