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Purchase and Removal of Specialty Chemical Complex
(5) Year Demolition & Investment Recovery Project - Niagara Falls, NY
Occidental invested significant capital to expand and upgrade its downstream chlorine activities in the late 1990’s. However, due to unfavorable business conditions, Occidental decided to close units. After Occidental Chemical was unable to sell its idled downstream chlorine assets at its Niagara Falls, NY complex, there was compelling reasons for them to demolish non-operating buildings and remove the assets from site. This project was initially budgeted to be a $15,000,000 cost. Phoenix Equipment purchased all (8) of the closed specialty chemical plants. As part of the purchase, Phoenix Equipment not only had to remove assets that could be re-used and re-sold as chemical process equipment but also perform a comprehensive demolition project that included over 50 structures. Phoenix Equipment purchased a majority of Occidental Chemical’s specialty chemical assets in Niagara Falls, NY. Occidental invested significant capital to expand and upgrade the facility in the late 1990’s. However, due to unfavorable business conditions, Occidental decided to close the specialty chemical processes. Our worldwide technical and marketing knowledge of the chemical processes, technology, patents and equipment enabled Phoenix to perform the dismantlement at no cost to Occidental. Together with Occidental, we structured an approach that allowed us to market the processes and equipment we had purchased while performing a major five phase decommissioning and demolition project. Although Occidental was unable to sell the assets as an ongoing business, they were able to recapture significant value from those assets and have their facility safely dismantled at no cost. Perhaps, together we helped them achieve the next best option, as they were able to focus on their core business goals, not closing a facility. Phoenix Equipment safely completed the project over a five year period.