The AIM-listed Lancashire firm, which provides animal by-product-compliant technology, is set to provide 180,000 tonnes of annual composting capacity to the Viridor and Laing consortium, in a deal worth up to 35 million over three years.
 TEG Environmental's demonstration plant, near Preston |
Viridor and Laing's consortium was named preferred bidder for the 3 billion Manchester PFI contract last week (see letsrecycle.com story).
Under the deal, Preston-based TEG hopes to provide four in-vessel treatment plants between 2007 and 2010 using its “Silo Cage” system.
Mick Fishwick, TEG chief executive, said: “We are absolutely thrilled to be working with the consortium that has won such a landmark contract. This is a major achievement for TEG; to be part of such as huge contract is a tremendous leap forward for us and it establishes once and for all as one of the leaders in the composting and recycling sector.”
Vision
Under TEG's arrangement with Viridor and Laing, the company is set to provide in-vessel capacity capable for treating both food waste and green waste in anticipation of separate food waste collections being introduced in Manchester.
The technology will be able to produce 125,000 tonnes of compost a year from 180,000 tonnes of organic waste.
Mr Fishwick said: “Greater Manchester Waste has a tremendous vision for waste management in the region and as a local company TEG is proud to be part of it. We look forward to 'going live' later in the year.”
Growth
Mr Fishwick explained that as a result of the impending deal with Viridor/Laing and other projects in the pipeline, TEG had restructured for “massive growth” – renaming itself the TEG Group plc in the process.
The company has also created two subsidiaries – TEG Environmental Ltd and the Natural Organic Fertiliser Company (NOFCO) – to install and design in-vessel composting equipment and create markets for compost respectively.
Mr Fishwick explained: “In the last twelve months TEG has seen tremendous growth with several major projects about to come to fruition. We are in the last stages of commissioning new developments for clients in Norfolk and Swansea and our own facility in Todmorden is currently 10 weeks ahead of schedule.”
He said: “With further major developments planned during 2007, we felt the time was right to change our structure to prepare us for the continued growth of the business.”
Mr Fishwick added that the Todmorden facility, which is TEG's largest project to date with a 50,000 tonne annual capacity, is expected to provide in-vessel composting capacity to Manchester under an interim waste management contract in the region.
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