Metal Management, Inc. has formed a wholly owned subsidiary and has entered into a joint venture agreement with Donjon Marine, Inc. to form Port Albany Ventures LLC.
The newly created venture in turn has acquired substantially all of the assets of a business that conducts stevedoring and marine services operations on the Hudson River adjacent to Port Albany Terminal in New York State. Metal Management through a wholly owned subsidiary contributed cash of approximately $6.6 million in addition to marketing and operational expertise it brings to the joint venture.
Donjon Marine, Inc. made an equal cash capital contribution to form the joint venture. Metal Management expects the joint venture will be accounted for under the equity method of accounting.
Daniel Dienst, chairman, CEO and president of Metal Management, Inc., noted, "This joint venture is an outstanding opportunity for Metal Management to expand its stevedoring and material handling business. The Port Albany facility is an already established and very profitable business. Its Hudson River location will complement our port activities downriver at Port Newark in New York Harbor. We will evaluate opportunities to broaden the utilization of the 28 acre facility beyond its current base business including, but not limited to, the potential for recycling activities."
Alan Ratner, Chief Executive Officer and President of Metal Management Northeast added, "This venture will allow us to offer single source pricing for customers that will result in Metal Management becoming the most competitive bulk terminal operator in and around the New York Harbor region. The location and configuration of this property will allow us to significantly expand our service offerings to current and prospective customers. The acquired business mirrors and complements our existing and rapidly growing stevedoring business at Port Newark Terminal. Our partner responsible for the on-water marine activities, Donjon Marine, has been a valued customer for many years and their skills in the arena of marine services are unparalleled in the marketplace. We look forward to enjoying an outstanding partnership with Donjon Marine and its principal owner Arnold Witte."
Metal Management operates about 40 recycling facilities in 14 states.