Joint venture to develop composting plants

The new company, called Verdia Horticulture Ltd, will have access to TEG's in-vessel composting technology and expertise of its “silo cage” process.

And, it will have Glendale's experience of operating local authority waste contracts, and its access to the market for composted organic waste products.

The new partnership will build and operate in-vessel composting plants as well as bidding for local authority contracts to process organic waste. Initial plans are to develop six to eight “medium-scale” facilities over the next two to three years.

The composted products of the process will then be sold to Preston-based Glendale, which is part of Parkwood Holdings plc, as well as regional horticultural markets.

Each partner within new joint venture will own 50% of Verdia's equity.

Verdia intends to develop organic waste treatment facilities dealing with around 10,000 to 15,000 tonnes of material each per year, largely funded through bank loans.

“Opportunity”

Tony Hewitt, executive chairman of Parkwood Holdings, said the two companies had already worked together for 16 months, and now believed their expertise fitted naturally together.

“By creating Verdia with TEG, we have a new and exciting opportunity to expand Glendale's recycling activities within the rapidly developing UK composting market. We are delighted to have signed this new Joint Venture,” he said.

The first two facilities to be developed by Verdia are expected to be Claylands Corner in Somerset and Hill Barton in Exeter, both of which have planning permissions in place. Construction on these facilities is scheduled to begin in the next few months.