Shanks Sells HazWaste Operations

UK-based company plans to focus on recycling, municipal waste management contracts.

Shanks Group plc, a leading European waste management company today announces that it has sold the major part of its UK hazardous waste operations to Onyx for a gross cash consideration of £28m.

 

In a separate transaction with Waterfront Edinburgh Ltd, Shanks has agreed to the closure of its liquid waste processing plant and the renunciation of the lease on its Granton site. A gross cash consideration of 6 million pounds will be paid of which 2 million pounds will be received on clearing the site.

 

Together the above assets constitute all of Shanks’ UK hazardous waste operations.

 

Following a strategic review in 2003, Shanks decided to focus its UK operations on the emerging market for long term municipal waste contracts using new technologies, and on the recycling of non-hazardous industrial and commercial waste as landfill tax increases.

 

From the proceeds 5 million pounds will be paid into the Group’s UK defined benefit pension scheme to cover the residual liabilities of the employees of the Hazwaste activities who have become deferred pensioners. The balance of the proceeds after costs will be used to fund corporate development both in the UK and the Benelux.

 

The assets sold comprise the high temperature incinerator and waste-to-energy plant at Fawley together with nine other chemical treatment sites, including the Granton site.

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