A North-East firm has won a major contract to recycle a so-called US 'ghost fleet' creating around 200 jobs.

Billingham company Able UK finalised the deal with the US Marine Administration (MARAD), which will see 13 obsolete warships towed across the Atlantic to Hartlepool for dismantling.

The vessels will be towed from the James River in Virginia, where they are currently berthed, to Able UK's Teesside Environmental Reclamation and Recycling Centre (TERRC) at Greatham where they will be dismantled in 'dry dock' conditions.

Peter Stephenson, managing director of Able UK, said: "This is a project which is good news for Able UK and the region in underlining our position as a major centre for handling complex marine decommissioning projects.

"The vessels selected for inclusion in the contract have been surveyed in detail and will be cleared as seaworthy by the US Coastguard service before they are moved to TERRC.

"TERRC is big enough to handle all 13 vessels and once they have arrived, the basin will be drained and sealed, allowing the safest possible conditions for disposal. In many respects this operation will be similar to the work we have been undertaking for many years in decommissioning redundant offshore structures."

Concerns have been voiced over the scheme and environmentalists feel the move threatens catastrophe.

Greenpeace's International Toxic and Demolition Expert Frank Peterson said: "America is using Britain as a dumping ground. We have a huge concern it could be the start of a nightmare."

However, Mr Stephenson said: "These empty ships pose less risk than vessels which are carrying any cargoes. "The reason they are being brought to us is because our facilities are second to none and we can provide the safest way of recycling them."

The US Navy ghost fleet - made up of decommissioned warships, tankers, bulk carriers and tank transporters - would be towed across the Atlantic through the Pentland Firth, between the mainland and Orkney and down Scotland's east coast. The ships will be available for recommissioning in the event of a national emergency.