Publicly owned company offers the eWaste brand of services through a global network of providers.
The electronic waste management and reverse logistics company E-Waste Systems Inc. (EWSI) , based in London, has signed a master license agreement for the United Kingdom and the Republic of Ireland. The exclusive two-year agreement calls for an initial license fee payment plus annual royalties and a minimum sales commitment of $2 million.
EWSI targets companies facing regulatory or other mandates for handling electronic scrap. The company operates and assists a large geographical network of affiliates to offer global e-waste solutions.
EWSI says the deal will solidify its electronic scrap presence in the U.K.
"We are thrilled to complete this deal. With our U.S. nationwide coverage, China and now Europe, we have rapidly developed the footprint for our eWaste brand in the key major growth geographies," says Martin Nielson, CEO of EWSI.
Terms of the agreement are consistent with the recently announced licenses in China, which, combined with the U.K. and Ireland license, will give EWSI two master licenses and three further sublicenses for a total of $7 million in revenue commitments.
The agreement calls for a payment of $75,000 for the purchase of an initial two-year license fee plus a royalty of 2 percent of annual revenues, combined with a minimum commitment of $2 million in revenues and a commitment to source at least one additional sub-license in Ireland during the initial term.
Nielson says Europe's Waste Electrical & Electronic Equipment (WEEE) Directive represents the highest regulatory standard in the world for processing electronic scrap. “We hold this as the gold standard which we can offer our affiliates, corporate partners and governments seeking such high standards,” Nielson adds.
“This master license advances our eWaste brand footprint globally as the leading pure play public e-waste company and the only one in Europe. With the waste stream growth projected in the European markets and the increase in e-waste recycling required under the new WEEE legislation, now is the time to establish ourselves in this market,” says Nielson. “We intend to aggressively pursue the development of our brand in the U.K. and Ireland and expect to be able to use the experiences gained here as best practice to advance the interests and standards of our growing group of partners around the world.”
According to data from the U.K. Environment Agency, more than 1.5 million metric tons of electronic equipment was placed on the U.K. market in 2011, but only 33 percent of this was collected for recycling through approved sites. Under the recent recast of the WEEE Directive, member countries are obliged by law to grow the percentages processed to 85 percent (of WEEE generated) in the near future.
The U.K.’s Waste and Resources Action Programme (WRAP) estimates that between now and 2020, electronic scrap in the U.K. will total more than 12 million tons, with IT equipment, consumer electronics and display screens comprising one quarter of this volume.