Project Overview
Kaiser Aluminum assumed responsibility for the former LaRoche Industries chloralkali complex in Gramercy, Louisiana, located next to its operating alumina refinery. The abandoned complex included chlorine, caustic soda, and refrigerant plants, along with a significant amount of asbestos-containing material.
Phoenix Equipment acquired the plants and took responsibility for asbestos abatement, equipment recovery, dismantlement, and material recycling. The approximately $4.5 million project ran from November 2005 through February 2007.
The Challenge
The idled plants sat beside an operating alumina refinery, while the abandoned process areas contained substantial asbestos that had to be addressed before dismantlement could proceed.
Kaiser needed the obsolete complex removed without taking on the cost and management burden of abatement and dismantlement. Phoenix was the only company to propose purchasing the plants while also assuming more than $1.5 million in asbestos abatement and the full dismantlement scope at no cost to Kaiser.
Asset Recovery & Plant Redeployment
Phoenix evaluated the complex for both complete-plant resale and individual equipment recovery. The refrigerant plant was sold for relocation, while more than 75 pieces of process equipment were preserved for resale.
The remaining materials were directed toward recycling, including approximately 1,500,000 pounds of alloy scrap and 6,000 tons of steel.
Project Outcome
Phoenix paid Kaiser for the obsolete assets, completed the required asbestos abatement, recovered reusable equipment, and dismantled the complex without passing those costs back to the owner.
The refrigerant plant was redeployed, more than 75 pieces of equipment were preserved for resale, and substantial quantities of alloy and steel were recycled.
Project Highlights
- Client: Kaiser Aluminum
- Location: Gramercy, Louisiana
- Former Owner/Operator: LaRoche Industries
- Facilities: Chlorine Plant, Caustic Soda Plant and Refrigerant Plant
- Site Conditions: Abandoned Chloralkali Complex Adjacent to Operating Alumina Refinery
- Phoenix Scope: Plant Acquisition, Asbestos Abatement, Equipment Recovery, Plant Relocation, Dismantlement and Scrap Recycling
- Asbestos Abatement: More Than $1.5 Million
- Complete Plant Redeployed: Refrigerant Plant
- Equipment Preserved for Resale: More Than 75 Pieces
- Alloy Scrap Recycled: Approximately 1,500,000 Pounds
- Steel Recycled: Approximately 6,000 Tons
- Project Timeframe: November 2005 – February 2007
- Project Value: Approximately $4.5 Million
- Owner Outcome: Paid for Assets / Abatement and Dismantlement Completed at No Cost
Recovering Value From an Abandoned Process Complex
The economics of the Kaiser project were driven by more than scrap recovery. Phoenix identified value in the complete refrigerant plant, individual process equipment, and recyclable metals, then used that recovery potential to support a transaction in which Kaiser was paid for the assets and avoided the cost of abatement and dismantlement.
The result was a cleared obsolete process complex beside an operating refinery, with reusable equipment redeployed and substantial material value recovered through recycling.