30th Apr 2008 11:42
TEG Group (The) PLC30 April 2008 For release 11:20 a.m. 30 April 2008 The TEG GROUP PLC (TEG) ("TEG" or "the Company") Greater Manchester PFI Update TEG Secures £3.78m Next Order Further to the contract update reported on 9 January 2008, the TEG Group PLC,the AIM-listed cutting edge green technology company, which converts organicwastes into natural organic fertiliser, confirms it has secured a further Advanced Works Order ("the Order") from its customer Costain, the companyretained by the Viridor-Laing consortium to manage the construction projectsfor the PFI Contract. The purpose of the Order is to allow TEG to proceed with the first scheduledconstruction projects under the PFI contract. The Order has been placed now aspart of a process to ensure there are no delays to the installation programmes.Work will continue to proceed to schedule in advance of Financial Close, whichis expected to be concluded in the immediate future. The design work for the plants is largely complete, funded under the AdvancedWorks Order announced on 9 January 2008. The Order announced today covers theinitial procurement requirements for the two TEG Silo Cage plants. The Order isin line with keeping critical facilities on track whilst documentation iscompleted for Financial Close. This Order will form part of the PFI contract tobe awarded under this Financial Close process. TEG expects the overall value of that contract to be in excess of £35m and does not anticipate any change to itsscope of supply. Commenting for TEG, Chief Executive Mick Fishwick said: "This order is a further significant step forward in the development of theGreater Manchester PFI contract and it allows us to maintain the projectschedule." "It further underlines the commitment all parties have in ensuring the PFIprocess is completed and key projects are developed on time." ENDS Contact: The TEG Group Plc Tel: 01772 314100Michael Fishwick, Chief Executive Adventis Financial PR Tel: 020 7034 4758Tarquin Edwards Canaccord Adams (Nomad) Tel : 020 7050 6500Robert Finlay Editor's Notes: TEG TEG provides an in-vessel composting technology, which is one of the fewapproved technologies capable of treating animal by-product (ABP) waste. Planteconomics are predominantly driven by the gate fees charged, rather than thevalue of the end product (compost). The TEG process is an economic alternativeto landfill. The Silo Cage system, one of the few technologies in Europe capable of treatingthis waste, is a natural process producing compost as an end product, used as anexcellent soil conditioner that fertilises, retains moisture, provides structureand reduces the incidence of plant disease. TEG's Silo-Cages are housed inself-contained buildings, are not unsightly and are environmentally friendly. Customers include local authorities, waste management companies, foodprocessors, farmers and landowners. The Company's expanding market is driven byincreasingly stringent EU and UK legislation regulating the treatment anddisposal of organic waste. Statutory targets for the diversion of waste fromlandfill increase annually through to 2020, increasing TEG's market opportunityyear on year. The Waste Resource Action Programme estimates that 450 compostingplants will be needed by 2020 to satisfy local authority requirements alone, andthere is increasing demand from the private sector driven by ABP legislation. NOFCO is a marketing company specialising in the development of end markets forcompost products, an important aspect of all plant developments and key to localauthority development. The company has an expertise in the development ofagricultural and horticultural markets and this capability is to be provided tocustomers to enhance TEG's overall service offering. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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