Pasadena Refining's Demolition of the Pasadena Paper Mill



Pasadena Refining System Inc. (PRSI) purchased the Pasadena Paper Mill (formerly known as  Simpson Paper, located adjacent to the PRSI refinery in Pasadena, Texas, for use as a site for future expansion. The Paper Mill facility consisted of 149 acres of plant, process units and equipment. The Facility was to be completely demolished to a depth of 3 feet.

The initial demolition bids indicate a turnkey cost for demolition between $3M and $8M, with the demolition contractor retaining all plant, process units, equipment and metals for their account (traditional demolition removal).

Professional Recovery services, Inc. (ProRecovery) was hired to evaluate the potential investment recovery and recycle including all process units, equipment, paper machines, metals, valves, pipe etc. The investment recovery estimate for the facility was $9M. ProRecovery included a detailed investment recovery plan and detailed specifications with the investment recovery estimate to be used for additional bids.

After Review of the estimated investment recovery, it was determined to perform a second round of bidding on the basis of PRSI retaining all non-ferrous metals (copper, stainless steel, aluminum, titaniuk, etc.) and selected equipment (dryers, washers, large valves, motors, pumps, etc.). Also included in the second round of bid specifications were extensive safety requirements and environmental requirements and qualifications.

The results of the second round of bidding lowered the demolition bids to between$2M and $3M on a turn key basis, with PRSI retaining all non-ferrous metals and selected equipment.

First Round Bids
Second Round Bids*
Cost/Revenue to PRSI
Bids -
($3M to $8M)
  Bids w/
($2M to $3M)
  Investment Recovery
  Net Revenue to PRSI $7M