Economou backs $300m Green Recycling Initiative


George Economou and broking house Banchero and Costa Spa have both invested in the Green Recycling Initiative launched two weeks ago. The $300m GRI aims to integrate the needs of steel producers to be able to produce ethically sourced steel from traceable scrap and the needs of shipowners to recycle ships in a more environmentally friendly manner.

The launch investors were Italy-based Siba Ships and Netherlands-based Seaarland Shipping Management. The Green Recycling Initiative (GRI) is building a fund to buy around 120 obsolete ships during 2009/10. Investors will be drawn from both the shipping and steelmaking industries. It will begin recycling these at established environmentally friendly ship recycling yards run by the International Ship Recycling Association while it builds its own recycling facility.

Brett Salt, Managing Director of GRI, said: “We welcome high profile shipowner George Economou and efficient international broker Banchero and Costa Spa as investors in GRI. They share our high environmental standards and also see the business opportunity to be able to demonstrate traceability in the sourcing of scrap for new steelmaking and the recycling of ships.”

George Economou, founder of Cardiff Marine Inc and Chairman of DryShips Inc, said: “We believe that responsible recycling is the way forward, and it makes sense to be in at the ground floor of what will become a very big business. GRI combines ethical and environmental responsibility with a sound business plan. I’m very happy to be part of that.”

Both Cardiff Marine and DryShips are global shipping transportation companies specialising in the management and transportation of various commodities in both the drybulk and the energy sector. The fleet managed by Cardiff Marine is in excess of 10 million dwt.

The Green Recycling Initiative is a Singapore-based company specifically formed to buy and recycle ships and to trade steel scrap on a global basis. It is run by Pearl Minerals and Metals Ltd, an Australia-based minerals fund.