TEG.L Regulatory News (TEG)

6 Dec 2007 11:36

TEG Group (The) PLC06 December 2007 For release 11:30 am 6 December 2007 The TEG GROUP PLC (ticker: TEG/L) ("TEG" or "the Company") Waste Contract Gains Large Contracts with Major Waste Management Company and Local Authorities The TEG Group PLC ("TEG" or "the Company"), the AIM listed cutting edge greentechnology company, which converts organic waste into natural organicfertiliser, announces it has signed two sizeable contracts for the supply ofwaste into its facilities at Sherdley Farm, Preston and Todmorden. In addition,the Company has recently secured further substantial volumes of waste from LocalAuthorities for supply into its Sherdley Farm facility. The first contract is with Veolia Environmental Services ("Veolia"), the leadingwaste management company that is part of the global Veolia Group. The contractis for an initial 17 month term and is for up to 9,000 tonnes per annum of greenand garden waste. The contract is renewable subject to negotiation. The second contract is for supply of kitchen waste from Oldham MetropolitanBorough Council. The contract volume is initially 500 tonnes per annum, risingto 1,000 tonnes per annum during the course of the contract which is for a 3year term. In addition to the two contracts, TEG has secured a further 20 tonnes per weekof food waste from other Local Authorities in the North West region (1,000tonnes per annum equivalent). It is intended that this volume will rise to 50tonnes per week (2,500 tonnes per annum equivalent) by early 2008. The totalvalue of the new business for the Preston and Todmorden plants is approximately£245,000 per annum rising to £350,000 per annum. Commenting for TEG, Chief Executive Mick Fishwick said "It is extremely pleasing to have secured this new business that will helpunderpin the Preston and Todmorden operations. The level of interest we arereceiving from Local Authorities is growing continuously as they expand theirrecycling activities to fulfil Landfill Allowance Trading Scheme ("LATS")obligations. The intention is that a number of these contracts will migrate tolarger contracts covering co-mingled waste streams and we look forward tocontinuing to work with Local Authorities and to assist them in their recyclingneeds". ENDS For further information visit: www.theteggroup.plc.uk or enquiries to: 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 Chris Bowman Editor's Notes: Landfill Allowance Trading Scheme ("LATS") The Landfill Allowance Trading Scheme (LATS) introduces significant andinnovative changes in waste policy and practice for the diversion ofbiodegradable municipal waste from landfill. It is intended to provide a costeffective way of enabling England to meet its targets for reducing thelandfilling of biodegradable municipal waste under Article 5(2) of the ECLandfill Directive. "LATS targets" is the term used for the statutory targetsfor Local Authorities to fulfill their obligations to divert waste fromlandfill. The TEG Group PLC 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