Project Overview
Novartis shut down an API pilot plant in East Hanover, New Jersey and needed to dispose of the equipment while clearing the facility. Phoenix Equipment purchased all equipment within the plant and assumed responsibility for removal at its own cost, including dismantlement, required line breaks, utility lock-outs, and final equipment removal.
The approximately $2 million project ran from October through December 2012 and was completed safely in three months.
The Challenge
Novartis evaluated selling the surplus equipment through an online broker, but that route depended on individual asset sales and left more uncertainty around timing and removal. Phoenix offered a guaranteed outright purchase together with a commitment to remove the equipment at its own cost.
Equipment Removal & Site Execution
Following the acquisition, Phoenix coordinated the line breaks, utility lock-outs, dismantlement, and removal required to clear the shutdown API pilot plant. The work was completed safely within the three-month schedule in December 2012.
Project Outcome
Novartis received a guaranteed financial outcome and a defined removal commitment rather than relying on individual equipment sales through an online broker. Phoenix assumed both the equipment-market risk and the cost of dismantlement and removal.
Project Highlights
- Client: Novartis
- Location: East Hanover, New Jersey
- Facility: API Pilot Plant
- Phoenix Scope: Equipment Acquisition, Dismantlement, Line Breaks, Utility Lock-Outs and Equipment Removal
- Transaction Structure: Guaranteed Outright Purchase and Removal Commitment
- Equipment Recovered: See Liquidation
- Project Timeframe: October 2012 – December 2012
- Project Duration: Approximately 3 Months
- Project Value: Approximately $2 Million
- Safety: Completed Safely
- Owner Outcome: Guaranteed Sale / Removal at Phoenix’s Cost
Providing Certainty in Equipment Disposition
The Novartis project centered on transaction certainty. By accepting Phoenix’s guaranteed purchase-and-removal proposal, Novartis avoided the uncertainty of individual equipment sales while Phoenix assumed the market risk, dismantlement responsibility, and removal cost for the shutdown API pilot plant.