Herhof: German sister firm in administration

As a consequence the future of the proposed Herhof mechanical biological treatment plant in Leyland, Lancashire is uncertain.

In December 2003, Lancashire County Council appointed Herhof Environmental (UK) Ltd as the preferred bidder in respect of a public/ private partnership contract for the development of a 120,000 tonne per annum MBT facility for the processing of household waste at Leyland.

Planning permission
In December 2004 planning permission was granted for the construction of the facility. The county council and Herhof Environmental (UK) Ltd have been in detailed negotiations over the past 14 months and it was planned that the contract would be finalised shortly for a start on site this summer.

The county council said it was informed on March 1 “by Herhof Environmental (UK) that its German sister company, Herhof Umwelttechnik GmbH, has gone into administration”.

Herhof Umwelttechnik GmbH is the provider of the technology for the proposed Leyland plan. A spokesman for Lancashire said: “This development creates major uncertainty as to whether Herhof's technology will be available for the conclusion of the contract with Herhof Environmental (UK) Ltd.”

He added: “The council will continue to work with Herhof Environmental (UK) to determine whether or not the contract can be concluded. This process is likely to delay the contract start by at least six months.”

PFI contract
The spokesman continued: “If it is not possible to conclude the proposed contractual arrangements with Herhof, the county council will include the development of the Leyland facility within its larger Private Finance Initiative contract for the wider Lancashire waste network. This arrangement would mean that a start on site would not be expected before the summer 2006 at the earliest.”