20th Dec 2019 09:34
(Alliance News) - Renewi PLC on Friday said the Dutch market ban on thermally treated soil has been lifted, meaning soil from Renewi's ATM facility can now be used in the Netherlands and abroad.
Shares in Renewi surged 23% on the news to 33.20 pence in morning trade in London.
IL&T, the Dutch Human Environment & Transport Inspectorate, banned the use of thermally treated soil in 2018 pending testing. With the testing process now complete, and showing the product to be safe, the ban has ended.
Although the Dutch minister of Environment & Housing - acting on IL&T's advice - has lifted the ban, specific uses still need approval from local regulators. As such, Renewi expects it may be "some months" before the first permits are secured for use.
While Renewi's pipeline of customers intending to use thermally treated soil at their locations is "strong", the time needed to obtain these permits means its outlook for its year ending March 31 is unchanged.
Chief Executive Otto de Bont said: "We are delighted that the Minister and IL&T have lifted the ban after confirming [thermally treated soil] is safe for use in an industrial application. We will now work hard with our customers to secure permits for its local application in the coming months. The ability to use TGG again as an important secondary material in the infrastructure market will complement our ongoing strategy to scale up capacity for the manufacture of secondary building materials using TGG."
On Thursday, Renewi said Chief Executive Otto de Bont paid GBP23,940 for 90,000 shares in Renewi. The CEO bought the shares at 26.6 pence on Monday this week.
By Anna Farley; [email protected]
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