Covanta UK Seeks Buyer Following MRWA Failed Contract Bid

10-05-13(1)picThe UK arm of Covanta Energy, operator of energy-from-waste facilities, is seeking a buyer or partner as one of a number of possible options.

The decision follows a review of its UK operations following the news it failed to win preferred bidder status in the Merseyside Recycling and Waste Authority’s 30-year MSW contract.

The assets include the three strategic sites which have planning consents for EfW facilities and Permits (either confirmed or advanced drafts from the Environment Agency).

“The decision follows a review of its UK operations following the news it failed to win preferred bidder status in the Merseyside Recycling and Waste Authority’s 30-year MSW contract.”

The sites are Rookery in Bedfordshire (585,000 tpa); Ince in Cheshire (850,000 tpa) and Green Hills near Airdrie Scotland (300,000tpa).

It also has a leasehold interest in a site in Middlewich. Other assets include municipal waste procurements in various stages and an existing waste contract.

The Company is consulting staff – the majority of which are facing redundancy if a buyer cannot be found. Covanta opened its UK office seven years ago and currently employs 30 people in Halesowen, West Midlands.

The UK’s founding managing director, Malcolm Chilton has left the company. The director of legal and corporate affairs, Fiona Penhallurick, has replaced him.

She is currently looking to appoint a suitably qualified firm to handle the search.

Covanta has made considerable investments in the sites in order to secure consents and hopes these will now move to the construction phase, with the support of buyers or partners. Once the facilities are built Covanta would be interested in running them.

Covanta will continue to operate from its existing offices while a buyer or partner is being sought.

 

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