The update also explained that for the period from 1 April 2019 to 30 September 2019, trading for the Dutch-owned group has been “in line with expectations”.
This was partly down to the commercial division continuing to benefit from price increases and synergies “which have more than offset cost inflation, lower paper prices and a modest slowdown in volumes”.
In July of this year, it was revealed that four of the six lines at Amsterdam’s AEB energy from waste plant are to be temporarily taken out of service, as works take place to improve safety at the plant (see letsrecycle.com story).
Around 20% of the plant’s capacity – roughly 250,000 tonnes – was fulfilled by imports of material from the UK in 2018, and a spokesperson for the operators said they would not take any UK waste while the work is undertaken.
Renewi, which was a major contributor to the facility particularly through its East London Waste Authority contract, said it has been able to “create buffer capacity” and has contracted alternative incineration and landfill capacity for the remainder of the year.
According to the trading update from Renewi, “AEB is contractually liable to compensate us for costs incurred and we are in the process of recovering these in full”.
Derbyshire
The update also referenced Renewi’s contract with Derby and Derbyshire councils, which was brought to an early end in August (see letsrecycle.com story).
It included managing Derby’s recycling centres, providing five transfer stations and building and running the 190,000 tonnes-per-year gasification plant in Sinfin, Derby.
In the trading update, Renewi said the termination of this was provided for in the last financial year’s results. The company says it has now entered into a ‘Continuity Services contract’ directly with the councils, which “will not require the injection of any capital”.
‘Unchanged’
Looking forward to the remainder of the financial year, Renewi said its board’s expectations for “remain unchanged with an ongoing focus on cash and driving leverage down over time”.
“All of our divisions are on track and we are increasingly confident that we will be able to increase production at ATM during 2020,” the company said.
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