Herhof has had an administrator appointed by a court in Germany to supervise re-financing negotiations with investors following the company's acquisition by Irish firm Treasury Holdings last year.
A spokeswoman for the company has told letsrecycle.com that Herhof's financial difficulties will not affect its planned UK activities “at all”.
But, a statement from Lancashire county council concerning Herhof's position as preferred bidder for the county's proposed MBT plant in Leyland, near Preston, accepted that the project could be delayed.
A spokesman the council said: “We have not yet signed a contract with Herhof and discussions are continuing regarding Herhof's position. This may delay the Leyland project but there is no question that a facility will be built at that site.”
Once built, the Leyland mechanical biological treatment (MBT) plant would act as a pilot project to divert more of the county's household waste from landfill. If successful, the county would then build up to three more MBT plants.
Process
Mixed household or residual waste is treated in MBT plants through a drying and separation process, removing recyclable materials and composting biodegradable content. The end product can be burned as a fuel or used as a low-grade 'c;ompost' to restore landfills. Herhof specialises in producing refuse-derived fuel in its MBT process.
The Leyland plant is to form an important part of Lancashire's Private Finance Initiative-backed waste management contract which also includes the unitary councils Blackpool borough council and Blackburn with Darwen borough council. The PFI contract intends to achieve a recycling rate of 60% by 2015.
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