ENV-06-152 Using Asset Recovery to Lower Costs and Reduce Liabilities

Description:

The strategic liquidation of scrap metal and surplus process equipment generated by dismantling idled facilities, but also expansions, de-bottlenecking, retrofitting, reengineering and environmental initiatives as well maximized the salvage credits resulting from subsequent sales. Since salvage revenues are generally applied against the cost of performing the work the higher the return from the sale of surplus assets equaled the lowest possible cost for performing the work which in turn equaled increased profits. More and more managers are starting to realize that scrap is more than just an incidental element of a project. It is untapped and under valued revenue. In short, it is a significant amount of money in the bank that can be used for anything only limited to the creativity of the department assigned the task of establishing cost centers and allocating funds. Traditionally a majority of the salvage revenue is used to help offset the cost of work being performed on demolition and dismantling projects.