Dive Summary:
- In an interim management report, Pennon Group, the parent company of Viridor, announced that the UK waste management division continues to struggle financially.
- The waste management group’s performance is blamed on low prices for waste paper and other recyclable materials.
- As part of the statement, the company also reported that Viridor has signed a 25 year recycling contract with the city of Glasgow and that it has begun construction on a 350,000 ton WTE facility.
From the interim earnings report:
As flagged at the Preliminary Results in May, Viridor is not immune to the difficult conditions in the world economy and trading has been significantly below the high level of last year’s first half with recyclate prices remaining under pressure.
Since 1 April Viridor has continued to develop its pipeline of long-term PPP and EFW projects and has:
- signed a 25 year contract with Glasgow City Council for the recycling and treatment of its residual waste and
- commenced construction of a 350,000 tonne Energy from Waste plant at Trident Park near Cardiff.
In July Viridor acquired JWT Holdings Limited, a waste collection and recycling business based in Greater Manchester, for £7.6m. The company provides excellent synergies with Viridor’s existing activities in Manchester and across the North West.