A new joint venture (JV) between Hilco Redevelopments Partners and MCM Marine Services (MCM) known as SteelCoast has completed the acquisition of ship recycling and scrap processing company ESCO Marine.
The purchase was completed after the US Bankruptcy Court proceedings and MCM acquired the assets from ESCO Marine’s former ship recycling and scrapping operations, which were sold following a bankruptcy proceeding filed in late 2015.
SteelCoast has become the new owner of ESCO Marine’s 70 acre ship recycling and scrap processing complex in Brownsville, Texas, US, under the deal.
SteelCoast board member Roberto Perez said: “Putting a deal together to acquire and relaunch this unique ship recycling and scrap processing business was complex, especially given the nature of the assets and our goal of maintaining key US Government client relationships.
“Following a lengthy diligence process, we are confident that SteelCoast has a very substantial growth path.”
SteelCoast is headquartered in Brownsville, Texas, and plans to hire around 130 employees by the end of May, as well as a further 80-90 additional employees in the months following.
The JV firm has already spent over $1m on the redevelopment its Brownsville site, which will provide a complete end-to-end solution, including recycling of huge ocean-going vessels operated by both military and non-military entities worldwide.
The company will also dismantle decommissioned, idled or underutilised oil rigs, locomotives and railcars, in addition to a number of other industrial and commercial sources of recyclable metals.
Furthermore, SteelCoast will process automobiles and other light metal products in its 4500HP shredder and resell the ship scrap to various manufacturing industries.