Symphony Env. Regulatory News (SYM)

30 May 2007 13:40

Symphony Environmental Tech. PLC30 May 2007 Business Update Product Clarification Symphony Environmental Technologies Plc ("Symphony" or "the Company"), thedegradable plastics and waste-to-energy Group, is pleased to announce thefollowing: BUSINESS UPDATE The Group continues to make progress notwithstanding the delays affectingperformance which have already been announced. In the oxo-biodegradableplastics Division the transition from low-margin finished product tohigher-margin additive is taking effect. In the waste-to energy Division we arepleased to announce progress with Thermal Pyrolysis (see below) in addition tothe progress with Microwave Pyrolysis announced on 30th April. Oxo-biodegradable Plastic (d2w) The changes referred to in the Company's Business Update announcement on 30April 2007 have started to have a positive effect on the business. Sales ofhigher-margin products are growing and operating costs are falling. The Company's announcements of 22 February and 30 April 2007 referred to delaysin a number of overseas markets, and that corrective action had been taken. Twomarket areas were involved, and in the first we are pleased to say the issueshave been resolved. Most of the local stock has been sold and paid for, and neworders have been confirmed for delivery. In the second market area, local stocksare being sold, the process of reconfirming orders and stock repositioning isongoing, and further updates will be given at the Preliminary Results stage,which will now be in June, rather than at the end of May. Waste to Energy (Thermal Pyrolysis) Symphony is also pleased to announce that Cabinet approval has been given in SriLanka for an MOU between Symphony Energy Resources Ltd. (SER) and the CeylonPetroleum Corporation (CPC) of Sri Lanka, supported by The Ministry of Petroleumof Sri Lanka. The project is to build a Thermal Pyrolysis plant in Sri Lanka in 2008 and hasbeen agreed as a result of meetings between SER and a team of experts from CPC.It must be stressed that no contract has yet been signed, but the MOU representsa major step forward for Symphony. CPC is the state owned Oil Company of Sri Lanka and is the sole importer andrefiner of oil products into Sri Lanka. Current operations include a refineryin Colombo, over 800 filling stations throughout the island, supplies to themarine bunkering companies, aviation fuel to the international airport, andsupplies of oil products to the independent oil companies. Thermal Pyrolysis is a process that applies heat to plastics in the absence ofoxygen to break the chemical bonds. The system converts waste plastics intoMarine Diesel Oil (MDO), and is designed to recycle mixed plastic waste streamsinto valuable and easily marketable products. The process provides analternative to conventional and more costly recycling systems and can use mosttypes of plastic waste that currently go to landfill. The system itself usesvery little energy and is self-sustaining with virtually zero waste from theprocess. If the plant is constructed, in due course MDO output per unit isexpected to be in the region of 18,000 tonnes per annum or the equivalent of150,000 barrels of oil. This technology addresses two of the most pressing environmental questions facedby governments worldwide - What to do with waste plastics, and how to reducedependence on imported oil. PRODUCT CLARIFICATION (oxo-biodegradable plastic) Plastics, recycling, compostability and renewable issues are now constantly inthe media and much confusion exists over this subject. Symphony's d2w(R)oxo-biodegradable technology produces plastic which degrades by a process ofOXO-degradation, initiated by an additive. The process involves little or noadditional cost, as products can be made with the same machinery and workforceas conventional plastic products. During their useful life they are just asthin, strong, and durable as ordinary plastic. It is important to note that the plastic does not just fragment. It is consumedby bacteria after the additive has reduced the molecular weight, and it istherefore "biodegradable." This process continues until the material hasbiodegraded to nothing more than CO2, water, and humus, and it does not leavefragments of petro-polymers in the soil. Eco-toxicity tests demonstrate that oxo-biodegradable plastic produces noimmediate, or cumulative, adverse effects on the soil, whether from the materialitself or from pro-degradants, plasticisers, surfactants, pigments, metal saltsor lubricants. D2w(R) does not contain "heavy metals." The UK Food Standards Agency's Expert Group on Vitamins and Minerals has carriedout a risk assessment on trace elements and has shown that most of the metalsalts used in oxo-biodegradable plastics are trace-elements necessary forhealthy plant and human growth. Unlike PVC, the polymers from which oxo-biodegradable plastics are made do notcontain organo-chlorine. Nor do they contain PCBs, nor do they emit methane ornitrous oxide, even under anaerobic conditions. The time taken for d2w(R) products to degrade can be 'programmed' at the time ofmanufacture and can be a few months or a few years. Exposure to sunlightaccelerates degradation, but the process of oxo-bio-degradation, once initiated,continues even in the absence of light, so long as air is present. Products canbe vacuum-packed for delivery and will not degrade in the absence of air untilneeded for use. On 24th May this year the Periodical Publishers Association of the UKrecommended to all its members that oxo-biodegradable film be used for wrappingtheir magazines for distribution. D2w(R) is already in use for this purpose. Oxo-biodegradable plastics are currently made from a by-product of oil refining,and oil is of course a finite resource, but this by-product arises because theworld needs fuels for engines, and would arise whether or not the by-productwere used to make plastic goods. Unless the oil is left under the ground, carbon dioxide will inevitably bereleased, but until other fuels and lubricants have been developed for engines,it makes good environmental sense to use the by-product, instead of wasting itby "flare-off" at the refinery and using scarce agricultural resources to makeplastics. D2w(R) has been certified safe for long-term contact with any food type attemperatures up to 40degreesC, and oxo-biodegradable products are being suppliedby the UK's leading supermarkets, Tesco and the Co-op. NB: In view of themajor custom of Walmart, is there any prospect of tying up ASDA at some point? In Portugal the country's largest retail group, Sonae, has adopted d2w(R)plastic carrier bags, and other major users include Marriott, Royal CaribbeanCruise Lines, BUPA, News International, Pizza Hut, KFC, and Walmart.Oxo-biodegradable plastic is ideal for frozen food packaging, as it can be keptfor extended periods at low temperature, and will quickly degrade when itbecomes a waste product at normal temperatures. In Brazil more than 20 cities have issued a direction that the city authoritiesand all their suppliers use only oxo-biodegradable plastic for their packaging,bags, and refuse sacks. If people want to incinerate oxo-biodegradable plastic with heat recovery, orrecycle them, or re-use them, then that can be done. The key point is whathappens to the plastic which is not collected, and gets into the environment aslitter. Conventional plastic will lie around in the environment for manydecades, but d2w(R) will degrade in a short time leaving no harmful residues. Biodegradable plastics have been supplied in UK supermarkets for more than threeyears but there is no evidence that they have caused any increase in litter. Oxo-biodegradable plastic also has useful applications in agriculture. For manyyears farmers and growers have used plastic sheets to protect their crops butafter the crop has been harvested many thousands of square kilometres of dirtyplastic have to be removed and disposed of. This is a very expensive process,and creates huge quantities of contaminated waste. Oxo-biodegradable plastic sheets can however be programmed at manufacture todegrade soon after the harvest. The fragments can then be ploughed into the soilwhere they complete the biodegradation process and become a source of carbon fornext year's plants. Symphony has trials ongoing with a new additive speciallyformulated for this purpose. Symphony Environmental TechnologiesMichael Laurier, Group Chief Executive Tel: 020 8207 5900Ian Bristow, Finance Director Citigate Dewe RogersonFreida Moore Tel: 020 7638 9571Ged Brumby Further information on the Symphony Environmental Technologies Group ofcompanies: SYMPHONY ENVIRONMENTAL LTD is a world leader in oxo-biodegradable plastics. Itdevelops and supplies environmentally-responsible pro-degradant additives aswell as oxo-biodegradable plastic film, and rigid packaging products. SYMPHONY ENERGY RESOURCES LTD. is developing innovative waste-to-energytechnology processing plants and is exploring many opportunities where there isa demand to convert plastics, tyres and other waste streams into valuableproducts by cost effective processes. SYMPHONY PLASTICS LTD has for many years supplied a very popular range ofconventional plastic bags and other plastic packaging products. THE SYMPHONY GROUP has a diverse and growing customer base in the UK and hassuccessfully established itself as an international business after signingagreements with companies in Argentina, Brazil, Canada & USA, Chile, Colombia,France, India, Mexico, New Zealand, Peru, Portugal, South Africa, the Caribbean,Saudi Arabia, and Qatar. Its d2w(R) products can already be found in more than40 countries. Further information on the Symphony Group can be found atwww.symphonyplastics.com and www.degradable.net. This information is provided by RNS The company news service from the London Stock Exchange