Industrial Accident Worries for Yeosu Industrial Complex Companies... Tens of Billions Spent on Regular Maintenance

"Implementation is Unfeasible Due to a Single Heat Exchanger"

The scene of the accident at Yeocheon NCC Plant 3 in Hwachi-dong, Yeosu-si, Jeollanam-do Industrial Complex on the 11th. (Image source=Yonhap News)

[Asia Economy Reporter Moon Chae-seok] Domestic largest naphtha cracking center (NCC) company Yeocheon NCC is facing difficulties as an industrial accident fatality occurred at its 3rd plant in Yeosu National Industrial Complex, Jeollanam-do. The cause of the accident was a single heat exchanger, making it difficult to perform regular maintenance, which costs billions of won each time, or to replace it entirely.

According to the petrochemical industry on the 15th, the heat exchanger, which caused the Yeocheon NCC explosion accident, is an essential component of the petrochemical plant that operates 24/7, 365 days a year. Without it, the plant operation would suffer critical disruptions. This is why airtightness tests are frequently conducted on the heat exchanger. Companies responded that the recent accident appears to have occurred due to the cover detaching during an airtightness test, but it is uncertain whether it was caused by a defect in the heat exchanger itself. They emphasized that the term "aging facility," as claimed by some, is inappropriate.

An industry insider explained, "Once a heat exchanger is installed in a plant, it is not replaced or shut down until the plant closes; if problems arise, it is repaired as needed." Another insider added, "If the equipment had been excessively aged causing the explosion, an entire 'city' would have been destroyed," expressing, "Regardless of regulations, engineers find it difficult to neglect facilities recklessly."

As there are many heavy chemical plants in the Yeosu industrial complex, raising concerns about chain damage, there have been calls to shorten the regular maintenance cycle, but the industry expressed reluctance. According to Yeocheon NCC and other NCC companies in the Yeosu industrial complex such as LG Chem and Lotte Chemical, regular maintenance is conducted once every four years or less. Under the Process Safety Management (PSM) system enforced by the Industrial Safety and Health Act, the government assigns companies four grades including P S M+ and M-, and the mandatory regular maintenance cycle may vary slightly depending on the grade. Yeocheon NCC currently holds an S grade, which may be downgraded after investigation. The regular maintenance period takes about 4 to 12 weeks and costs approximately 100 billion won. LG Chem completed regular maintenance at its Daesan industrial complex plant in November last year and plans to conduct maintenance at the Yeosu industrial complex in the second half of this year, four years after the last one in 2018.

An industry insider said, "Regular maintenance is an inspection that examines everything from raw material input to product production in the plant, so it is unreasonable to conduct it just because of one heat exchanger," adding, "It is more realistic to implement heat exchanger accident containment measures according to the risk assessment manual prepared by the company and to perform maintenance work only on the problematic parts."

Meanwhile, Yeocheon NCC is preparing for the possibility of a downgrade order under the PSM system following the initial investigation of this accident. It plans to revise the 'safety and health management system establishment obligation,' which is strictly regulated by authorities under the Serious Accident Punishment Act. A Yeocheon NCC official stated, "Regardless of the PSM grading system, we will maintain our own equipment maintenance, but if the government issues a corrective order for the safety and health improvement plan, we will comply immediately." The official refrained from commenting on future measures if the current CEO is indicted for violating the Serious Accident Punishment Act as a result of the investigation.

This content was produced with the assistance of AI translation services.