Ship Dismantlement and Recycling Joint Venture Wins Navy Pilot Program Contract
ALEXANDRIA, Va., Sept. 30 /PRNewswire/ -- Ship Dismantlement and Recycling Joint Venture (SDR) has been awarded a $3.7 million contract for the dismantling and disposal of an inactive U.S. Navy ship. The contract is one of four awarded by the Navy to bidders under a pilot program to develop and test environmentally sound and cost effective methods for disposing of excess naval ships. On successful completion of the pilot program, SDR expects to bid on scrapping additional ships.
SDR is a joint venture between Earth Tech, Inc., a subsidiary of Tyco International Ltd. (NYSE: TYC) and Ship Dismantlement and Remediation, Inc., a subsidiary of VSE Corporation (Nasdaq: VSEC). Additional subcontractors participating in the SDR pilot program contract are expected to include Astoria Metal Corporation, Energetics Incorporated, John J. McMullen Associates, Inc., Procurenet, and Waste Management Corporation.
The contract awarded to SDR calls for the dismantlement of the ex-USS LOCKWOOD (FF 1064), currently located at Suisun Bay, Benecia, California. SDR expects to establish a project office in the San Francisco Bay area to facilitate the dismantlement and disposal.
Don Ervine, VSE Chairman and CEO, said "We decided to enter into the ship breaking business about two years ago when we saw the need to develop environmentally sound and cost effective methods to dispose of inactive U.S. naval ships. Together with Earth Tech and the other members of the SDR team, we will work to develop processes and procedures to assist the Navy in scrapping ships economically, to safely contain and dispose of hazardous materials, to recycle materials and equipment wherever practical, and to ensure the health and safety of project employees."
Michael A. (Mick) McAuliffe, PE, Earth Tech Environmental, Waste and Remediation Division President, said "We look forward to working with SDR and the Navy on this important project. Earth Tech has extensive related experience in working on similar projects in other industries, and we plan to use our experience in developing effective procedures for future ship dismantlement efforts."
SOURCE VSE Corporation |
