TEG.L Regulatory News (TEG)

1 Apr 2008 07:00

TEG Group (The) PLC01 April 2008 For release 7:00 a.m. 1 April 2008 The TEG GROUP PLC (TEG/L) ("TEG" or "the Company") Glendale and TEG Announce First Plant in Joint Venture Verdia Plant Construction Underway Verdia Horticulture Limited ("Verdia"), the joint venture company establishedbetween Glendale Managed Services Limited ("Glendale") and the TEG Group Plc,has commenced construction of its first TEG Silo Cage plant at Hillbarton,Exeter. The announcement follows confirmation of full planning approval for thedevelopment. The capacity of the TEG Silo Cage plant will be 14,000 tonnes per annum,producing approximately 8,000 tonnes per annum of compost. The compost will bematured and blended to produce horticultural grade material for sale into thelocal horticultural sector. The waste will be supplied from local authority green waste collections via theGlendale composting subsidiary Eco Sci, and from private sector contracts forfood waste and food processing waste. Glendale will provide compost productexpertise and knowledge of the horticultural product market, together withanalytical and compost product services. The development is on a site leased by Glendale and will be a shared facilitywith Eco Sci who will carry out green waste composting in an adjacent operation. The plant and equipment will be supplied by TEG. The total cost of thedevelopment will be approximately £2.5m of which approximately £1m will be thecost of the building development and £1.5m the cost of the plant and equipment.Funding of the building work is part of the lease arrangement with the overallsite landlord. Funding of the plant and equipment will be by finance leasethrough Barclays Asset Finance. The site is scheduled to be operational by theend of Quarter 3 of this year. Commenting for Glendale, Managing Director Nick Temple-Heald said: "Our joint venture with TEG is part of Glendale's strategic plan to develop itsdiverse suite of green services to Local Authorities and the Commercial sectors." This new facility provides the opportunity to expand our recycling activitieswithin the rapidly developing UK composting market and also provides the ideallocation for Glendale's Devon based 'EcoSci' green waste recycling operations." Commenting for TEG, Chief Executive Mick Fishwick said: "This is a further significant step in the development of TEG. Our jointventure with Glendale offers us the opportunity to both develop a new revenuestream and also to gain a foothold in the higher value horticultural sector, andto work with an expert and market leader in that area. Verdia has an excitingfuture and we hope this is the first of many such plants to be developed overthe coming years. " "The construction of yet another TEG Silo Cage plant is a further endorsement ofour technology and capabilities and we look forward to opening the first TEGplant in the South West region." ENDS Contact: The TEG Group Plc Tel: 01772 314100 Michael Fishwick, Chief Executive Glendale Managed Services Tel: 01257 460461 Ian Stephenson, Director of Recycling Adventis Financial PR Tel: 020 7034 4759 Chris Steele Canaccord Adams (Nomad) Tel : 020 7050 6500 Robert Finlay Editor's Notes: Verdia Verdia Horticulture Limited is a joint venture company established by TEG andGlendale Managed Services Limited, a subsidiary of Parkwood Holdings Plc. Thejoint venture combines the technical expertise of TEG with the horticulturalexpertise of Glendale. Verdia's aim is to open a number of regional compostingfacilities designed to manufacture high grade compost products for sale into thehorticultural sector. TEG TEG provides an in-vessel composting technology, which is one of the fewapproved technologies capable of treating animal by-product (ABP) waste. Planteconomics are predominantly driven by the gate fees charged, rather than thevalue of the end product (compost). The TEG process is an economic alternativeto landfill. The Silo Cage system, one of the few technologies in Europe capable of treatingthis waste, is a natural process producing compost as an end product, used as anexcellent soil conditioner that fertilises, retains moisture, provides structureand reduces the incidence of plant disease. TEG's Silo-Cages are housed inself-contained buildings, are not unsightly and are environmentally friendly. Customers include local authorities, waste management companies, foodprocessors, farmers and landowners. The Company's expanding market is driven byincreasingly stringent EU and UK legislation regulating the treatment anddisposal of organic waste. Statutory targets for the diversion of waste fromlandfill increase annually through to 2020, increasing TEG's market opportunityyear on year. The Waste Resource Action Programme estimates that 450 compostingplants will be needed by 2020 to satisfy local authority requirements alone, andthere is increasing demand from the private sector driven by ABP legislation. NOFCO is a marketing company specialising in the development of end markets forcompost products, an important aspect of all plant developments and key to localauthority development. The company has an expertise in the development ofagricultural and horticultural markets and this capability is to be provided tocustomers to enhance TEG's overall service offering. Glendale Glendale is the leading provider of specialist green service solutions and thelargest operating division within Parkwood Holdings plc. Its portfolio of green services is led by Managing Director, Nick Temple-Healdand includes: • Glendale Countryside - incorporating Civic Trees Ltd • Glendale Grounds Management • Glendale Recycling - incorporating Verdia Horticulture Ltd • Glendale Golf • Glendale Horticulture - incorporating Coblands Nurseries Ltd • Glendale Environmental Glendale, formed in 1988, has a strong relationship with clients in both thepublic and private sector and operates more than 45 contracts, largely on behalfof local authorities, the Ministry of Defence and corporate clients. Glendale is a national company with a local presence. Offices are located acrossthe UK and its headquarters are at The Coach House, Duxbury Park, Chorley,Lancashire. Glendale Golf are the management company at Duxbury Park GolfCourse. This information is provided by RNS The company news service from the London Stock Exchange