EfW giant Covanta Energy puts UK arm up for sale
Global energy-from-waste (EfW) giant Covanta Energy is seeking a buyer or partner for its British arm following a strategic review of its UK operations.
The decision follows its failure to win preferred bidder status in the Merseyside Recycling and Waste Authority's 30-year municipal solid waste contract.
The Company is consulting staff - the majority of which are facing redundancy if a buyer cannot be found. Covanta opened its UK office seven years ago and currently employs 30 people in Halesowen, West Midlands.
Assets include three strategic sites which have planning consents for EfW facilities and permits. The sites are Rookery in Bedfordshire, Ince in Cheshire and Green Hills near Airdrie Scotland.
Covanta also has a leasehold interest in a site in Middlewich. Other assets include municipal waste procurements in various stages and an existing waste contract.
The UK's founding managing director, Malcolm Chilton has left the company. He has been replaced by director of legal and corporate affairs, Fiona Penhallurick. She is currently looking to appoint a suitably qualified firm to handle the search.
Covanta has made considerable investments in the sites in order to secure consents and hopes these will now move to the construction phase, with the support of buyers or partners. Once the facilities are built Covanta would be interested in running them.
Covanta will continue to operate from its existing offices while a buyer or partner is being sought.