Viridor has gained its first operational site in Cheshire with the 1.7 million acquisition of Winsford-based plastics and cardboard recycling company Storm Recycling Limited.
Storm Recycling, which is a family-run business, operates from a strategically located depot off junction 18 of the M6. It handles between 20,000 and 25,000 tonnes of cardboard and plastic films a year, the majority of which is derived from three to five year-long contracts with local businesses.
The acquisition is the latest in a growing list of North West recycling companies brought by Viridor, following the recent purchases of two Bury-based companies – Swinnerton Environmental in January 2011 (see letsrecycle.com story) and Adapt Recycling in December 2010 (see letsrecycle.com story).
It also gives the company, which is part of the Pennon Group, a foothold in a county where already has customers who it currently serves at its facilities in nearby St Helens, on Merseyside, and at Trafford Park, in Manchester. Viridor is also the provisional preferred bidder for Cheshire East and Cheshire West and Chester councils joint residual waste treatment contract.
In a statement, Pennon Group stressed the acquisition of Storm was in line with Viridors strategy of expanding its activities in the recycling sector and would compliment its exciting activities in the North West region.
Demand
Viridor chief executive Colin Drummond also highlighted the need for ever-increasing levels of recycling as well as a growing demand worldwide for recyclate.
Recycling is a fast growing part of Viridors business and accounted for around 25% of the Companys profits in 2010/11. This acquisition has an excellent geographic and business fit with Viridors existing operations in the North West of England and complements our existing recycling activities elsewhere in the UK, he said.
The recyclate from Storm Recycling will also provide additional volumes for our international trading arm. The acquisition is expected to be earnings enhancing in its first full year.
Storm Recyclings operations and its 34 staff will be integrated into Viridors Northern region and John Buddle, managing director of Storm said: Since its launch in 2003, Storm Recycling has been servicing clients to the highest standards.
By securing the acquisition of Storm, Viridor will be able to ensure that these high standards are maintained which is good news for the employees, customers, suppliers and all other stakeholders of the business.
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