FCC secures 80 million investment

Waste management firm FCC Environment has secured 80 million of additional investment capital following the refinancing of its UK business, the firm announced today (January 28).

According to FCC, the financial injection from Spanish parent company FCC S.A. is a strong endorsement of the firms expansion into the municipal and commercial waste management sectors.

The investment was backed by 100% of the companys existing investors, FCC said, and follows several high profile investments in FCC S.A. In late 2013, co-founder of Microsoft Bill Gates bought a 6% stake in the Spanish firm while billionaire financier George Soros also bought a 3% stake.

The Royal Bank of Scotland was among a number of lenders which helped the company to refinance is business for 381 million over four years (see letsrecycle.com story).

Chief executive of FCC Environment, Paul Taylor, commented: We are well on the way to delivering our strategy of owning the waste and maximising the value of the resource through recycling and renewable energy. This is a clear move away from our historic landfill business.

He added: This major investment is a clear vote of confidence in our strategy and provides us with necessary financial strength to move forward faster.

Strategy

In line with this strategy, the company highlighted its recent official opening of a 11 million materials recycling facility (MRF) at its Sutton Courtenay site in December 2013. The MRF has the capacity to process 100,000 tonnes of waste per year and is expected to provide up to 38 jobs (see letsrecycle.com story).

Additionally, FCCs 150,000 tonnes per year capacity energy-from-waste (EfW) plant in Lincolnshire is expected to become operational in spring 2014, while construction of the companys EfW facility near Calvert in Buckinghamshire is well underway.

The Calvert plant is being developed under a 30-year contract with Buckinghamshire county council and will process 300,000 tonnes of waste per year into 22MW of electricity (see letsrecycle.com story).

And, in 2013, FCC Environment was awarded the Cheshire West and Chester council contract to manage non-recyclable waste (see letsrecycle.com story). The eight-year contract will see waste that cannot be recycled used to generate electricity rather than being disposed of in landfill.

Mr Taylor added: We have already delivered significant infrastructure development. The investment creates clarity for our on-going and future development plans.

FCC Environment employs 2,400 people and operates more than 200 facilities across England, Scotland and Wales.