TEG.L Regulatory News (TEG)

5 Jun 2007 07:01

TEG Group (The) PLC05 June 2007 For release 7:00 a.m. 5 June 2007 The TEG GROUP PLC (TEG) ("TEG" or "the Company") Trading Update The TEG Group Plc ("TEG" or "the Company"), the AIM-listed cutting edge greentechnology company, which converts organic wastes into natural organicfertiliser, is pleased to announce that in relation to its Kildare facility ithas received the signed Licence to Occupy from Kildare County Council. Thisdocument accompanies the planning permission document that was received in finalform in October 2006. TEG is now able to commence the refurbishment of thefacility in order to re-open it as an animal by-product processing plant. The plant will have a 15,000 tonnes per annum capacity and will process greenwaste, food and animal by-product waste. A contract for supply of waste andplacement of compost end product has been agreed with a local waste managementcompany and it is intended that the facility will be operational by quarter 4 ofthis year, subject to the normal environmental licensing approval. The Company also announces it is experiencing slower than anticipated growth inwaste capacity sales at its plant in Perthshire, Scotland where delays inexpanding Local Authority recycling initiatives have contributed to a sluggishuptake of available capacity. The plant is operating at approximately 65%capacity but with the appointment of further sales resource, opportunities inthe private sector and the recent announcements of increased funding by theScottish Executive for recycling and composting, the Company remains optimisticthat sales will improve steadily over the course of the year. The Company's pipeline of BOO and Plant Sale projects remains strong and salesof waste capacity at both the Preston and Todmorden facilities are meetingexpectations. ENDS Contact: The TEG Group Plc Tel: 01772 314100Michael Fishwick, Chief Executive Adventis Financial PR Tel: 020 7034 4758Tarquin Edwards 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