TEG.L Regulatory News (TEG)

29 Jan 2007 08:56

TEG Group (The) PLC29 January 2007 For release 8:30am 29 January 2007 The TEG GROUP PLC (TEG) ("TEG" or "the Company") TEG Preferred Bidder in Greater Manchester to Build 4 Composting Plants TEG's Largest Order in its History The TEG Group Plc ("TEG" or "the Company"), the AIM-listed cutting edge greentechnology company, which converts organic wastes into natural organicfertiliser, announces it is a principal sub-contractor to the Viridor-Laingconsortium that has been awarded preferred bidder status for the GreaterManchester Waste PFI contract. TEG is the exclusive supplier of In VesselComposting ("IVC") technology to the consortium. Assuming the consortiumachieves expected financial closure TEG will receive an order to supply all theIVC capacity in the Greater Manchester region. TEG is expected to build 4 plants as part of the consortium, over the periodfrom 2007 to 2010. The combined capacity of the plants will be 180,000 tonnesper annum, producing 125,000 tonnes of compost product per annum. The plantswill all process green waste and kitchen waste collected from households in theGreater Manchester region. Depending upon the final scope of supply, the totalvalue of the construction projects to TEG will be up to £35m over the period2007 to 2010. The PFI contract is the largest waste management contract offered to date inEurope. Total capital investment will be in excess of £300m and the overallcontract value is projected to be £3bn. In addition to composting, the scope ofsupply for the consortium includes anaerobic digestion, mechanical biologicaltreatment, material recycling facilities and waste transfer operations. CostainLimited has been retained to manage the construction projects on behalf of theconsortium and will be TEG's immediate customer. It is anticipated thatfinancial closure will be achieved by June 2007. Contracts will become bindingat that point. Commenting for TEG, Chief Executive Mick Fishwick said "we are absolutelythrilled to be part of the consortium that has won such a landmark contract andwe are looking forward to working with companies with the prestige of Viridor,Laing and Costain. This is a major achievement for TEG; to be part of such ahuge contract is a tremendous leap forward for us and it establishes us once andfor all as one of the leaders in the composting and recycling sector. Quiteapart from the contracts, worth up to £35m over 2 to 3 years, this is also ahuge endorsement for the TEG technology and our ability to deliver majorprojects." "Greater Manchester Waste has a tremendous vision for waste management in theregion and as a local company TEG is proud to be a part of it. We look forwardto 'going live' later in the year". ENDS Contact: The TEG Group Plc Tel: 01772 314100Michael Fishwick, Chief Executive Adventis Financial PR Tel: 020 7034 4760 / 020 7034 4758Peter Binns/ Tarquin Edwards 07768 392 582 / 07879 458 364 Cannacord Adams (Nomad) Tel : 020 7050 6742Chris Bowman 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 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