TEG.L Regulatory News (TEG)

5 Apr 2007 07:01

TEG Group (The) PLC05 April 2007 For release 7:00am 5 April 2007 The TEG GROUP PLC (TEG) ("TEG" or "the Company") Re: Contract Gains TEG to be Awarded Waste Contract from Greater Manchester Waste Limited and Calderdale Council The TEG Group Plc ("TEG" or "the Company"), the AIM-listed cutting edge greentechnology company, which converts organic wastes into natural organicfertiliser, announces it has been named as a successful bidder for a 2 yearcontract ("Interim Contract") to process a total of approximately 44,000 tonnesof green and garden waste from the Greater Manchester region. The InterimContract with Greater Manchester Waste Limited will be finalised in April andthe contract is expected to commence on 1 May 2007. The Contract is worthapproximately £900,000 over the 2 year term. The contract includes an extensionof up to 1 year. The Interim Contract is a transitional arrangement to cover the period until newplants to process both food waste and green and garden waste are in place underthe terms of the Greater Manchester Waste Disposal Authority's PFI Contract("PFI Contract").It comes on the back of TEG's announcement on 29 January 2007that it is a principal sub-contractor to the Viridor-Laing consortium that hasbeen awarded preferred bidder status for the PFI contract in which TEG is theexclusive supplier of In Vessel Composting ("IVC") technology to the consortium. The Interim Contract is for supply to the TEG plants at Todmorden and atSherdley Farm, Preston and this will provide the base green waste supplyrequired by the 2 plants over the lifetime of the contract. The first two linesat the Todmorden facility are expected to be on line in advance of thecommencement of the contract. Lines 3 and 4 are expected to be completed laterin 2007. In addition, the Company has been awarded a contract by Calderdale Council toprocess food waste from its forthcoming collection trials at the Todmordenfacility. The contract will last for 40 weeks, the lifetime of the initialtrial, which will be reviewed by the Council following the initial term. Commenting for TEG, Chief Executive Mick Fishwick said: "We are delighted to have secured this new business with Greater ManchesterWaste Limited and Calderdale Council. It represents further waste streamssecured for Todmorden, which should come on line in April in time for thecommencement of the contracts. We expect to secure a number of further contractsin the near future that will fill the capacity of the first 2 lines at thefacility. Construction at Todmorden is well ahead of the original schedule andthis has allowed us to bid competitively for these contracts". ENDS Contact: The TEG Group Plc Tel: 01772 314100 Michael Fishwick, Chief Executive Adventis Financial PR Tel: 020 7034 4758 Tarquin Edwards 07879 458 364 Canaccord Adams (Nomad) Tel : 020 7050 6742/020 7050 6750 Chris Bowman/Robert Finlay 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 and is entirely LATS compliant. 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. This information is provided by RNS The company news service from the London Stock Exchange