9 Apr 2009 07:00
| For release | 07:00 | Date: 9 April 2009 |
The TEG GROUP PLC (TEG/L)
("TEG" or "the Company")
Greater Manchester PFI Reaches Financial Closure
TEG Concludes £38m Contract
The TEG Group Plc, the AIM-listed cutting edge green technology company, which converts organic wastes into natural organic fertiliser, confirms that Financial Close has been achieved on the Greater Manchester Waste Disposal PFI contracts ("the PFI Contract") and TEG has concluded its contract with its customer Costain Limited ("Costain"), the company retained by the Viridor/Laing consortium to manage the construction projects for the PFI Contract.
TEG's contract is for the construction of 4 TEG Silo Cage in-vessel composting plants to be constructed between 2008 and 2011. The plants will provide capacity to compost 175,000 tonnes per annum of green and food waste collected from householders in the Greater Manchester region. The plants will produce approximately 125,000 tonnes per annum of compost to be used in agriculture and horticulture in the region. The value of the contract to TEG is approximately £38m.
The first facility to be constructed is in Rochdale, where building works have been underway since June 2008. The remaining facilities will be constructed in Bredbury, Bolton and Trafford Park.
Commenting for TEG, Chief Executive Mick Fishwick said: "We are absolutely delighted to have concluded the Greater Manchester Waste Disposal PFI contract. We are very pleased to be playing a major part in the implementation of Europe's biggest ever waste management contract and we look forward to working with companies as prestigious as Costain, Viridor, Laing and the Greater Manchester Waste Disposal Authority.
"This is a major endorsement of TEG and its technology, and a very significant boost to our order book. Construction at Rochdale is well advanced and on programme and we are very pleased with progress to date."
ENDS
Contact:
Michael Fishwick, Chief Executive
Adventis Financial PR Tel: 020 7034 4758
Tarquin Edwards 07879 458 364
Canaccord Adams (Nomad) Tel : 020 7050 6500
Robert Finlay
Guy Blakeney
Editor's Notes:
Greater Manchester Waste PFI Contract
On 29 January 2007, TEG announced that it is a principal sub-contractor to the Viridor-Laing consortium that has been awarded preferred bidder status for the Greater Manchester Waste PFI contract. TEG is the exclusive supplier of In Vessel Composting ("IVC") technology to the consortium.
TEG is expected to build four plants as part of the consortium, over the period from 2008 to 2011 with a combined capacity of 175,000 tonnes per annum, producing 125,000 tonnes of compost product per annum. The plants will all process green waste and kitchen waste collected from households in the Greater Manchester region.
TEG was awarded an Advanced Works Order ("AWO") in 2008 and construction of the facility at Rochdale commenced in June 2008. Design work for the proposed second plant at Bredbury was also included in the AWO.
TEG
The Silo Cage system, one of the few technologies in Europe capable of treating this waste, is a natural process producing compost as an end product. The compost is an excellent soil conditioner that fertilises, retains moisture, provides structure and reduces the incidence of plant disease. TEG's Silo-Cages are housed in self-contained buildings, are not unsightly and are environmentally friendly.
Customers include local authorities, waste management companies, food processors, farmers and landowners. The Company's expanding market is driven by increasingly stringent EU and UK legislation regulating the treatment and disposal of organic waste. Statutory targets for the diversion of waste from landfill increase annually through to 2020, increasing TEG's market opportunity year on year. The Waste Resource Action Programme estimates that 450 composting plants will be needed by 2020 to satisfy local authority requirements alone, and there is increasing demand from the private sector driven by ABP legislation.
NOFCO, a subsidiary of TEG, is a marketing company specialising in the development of end markets for compost products, an important aspect of all plant developments and key to local authority development. The company has an expertise in the development of agricultural and horticultural markets and this capability is to be provided to customers to enhance TEG's overall service offering.