TEG.L Regulatory News (TEG)

3 Jul 2006 10:30

TEG Environmental Plc03 July 2006 For Release 3 July 2006 TEG ENVIRONMENTAL PLC CONTRACT FINALISED WITH BANHAM COMPOST LIMITED TEG Environmental Plc ("TEG") is pleased to announce it has signed the contractwith Banham Compost Ltd, a subsidiary of Banham Poultry Ltd ("Banham") for thesupply of its plant at Banham's Carleton Rode site, Norfolk. The facility willconsist of two banks of 24 TEG Silo Cages with a nominal capacity of 28,000tonnes of feed per annum, predominantly processing chicken feathers and otherfood industry waste streams. The value of the contract is approximately £1.7m,all of which is anticipated to be recognised in the 2006 financial year. TEG will be manufacturing and installing its plant into a Banham facility, withBanham managing the civil engineering separate to the TEG contract. Planningapproval was gained in April this year and it is intended that both lines willbe installed before the end of 2006. Commenting for TEG, Chief Executive Mick Fishwick said: "We are absolutely delighted to be able to conclude this contract with BanhamCompost and to begin installation. It is a further terrific endorsement of TEG'stechnology and we look forward to opening the plant later this year. TEG now has4 plants under development in the UK, in addition to 2 facilities already inoperation, and its facility in Ireland. We are building a truly nationalbusiness and with the market continuing its rapid growth, we look forward todeveloping more facilities and further rapid expansion" ENDS Contact: TEG Environmental Group PlcMichael Fishwick, Chief Executive Tel: 01772 314100 Adventis Financial PRPeter Binns/ Tarquin Edwards Tel: 020 7034 4760 / 020 7034 4758 Mob: 07768 392 582 / 07879 458 364 Editor's Notes: 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 fertilizes, retains moisture, provides structureand reduces the incidence of plant disease. TEG's Silo-Cages will be housed in aself-contained building, are not unsightly and are environmentally friendly. Potential 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. This information is provided by RNS The company news service from the London Stock Exchange