The deal, confirmed on Monday, will create about 200 jobs at Able UK's Hartlepool yard.

The 13 cargo and military vessels are part of the so-called "ghost fleet" of more than 100 decommissioned ships at anchor 4,000 miles away in Virginia, in the United States.

But some environmentalists have concerns over asbestos, oil and fuel still present in the ships.

Peter Goodwin, from the Middlesbrough Green Party, said the deal would be detrimental to the area.

Bad reputation

He said: "It will reinforce the smoggy image of Teesside.

"This fleet of waste, along with other recent things like the cattle fat burning, makes the area appear as somewhere which is full of hazardous waste.

"That cannot help to produce inward investment.

"Why should anybody need to bring rotting ships 4,000 miles across the Atlantic from the richest country in the world which should be equipped to deal with its own waste?"

But Peter Stephenson, Able UK's Managing Director, said there would be very little waste from the ships.

He said: "They are not carrying any cargo, so they are not carrying a cargo of asbestos, but there is some asbestos in the engines.

"There is approximately 1% of total asbestos and 4% waste."

The firm operates the Teesside Environmental Reclamation and Recycling Centre (TERRC), near Hartlepool.

It is thought the ships will leave port in Virginia in August.