Local authorities and other major contractors are assessing the implications on their operations of New Earth Solutions entering administration.
The waste treatment company wrote to shareholders on 7 June to announce that a proposed investment by a “significant” operator of combined heat and power plants on the continent had not materialised by a deadline of 31 May.
Director Michael Richardson told shareholders that “the directors of the New Earth companies, in consultation with their advisers, decided that the New Earth companies were required to seek statutory protection by filing a notice for the appointment of an administrator”.
The company’s affairs are now being handled by the Manchester office of financial specialist Duff & Phelps.
New Earth Solutions Group processes household waste from a number of authorities including the Dorset Waste Partnership (DWP), Bournemouth Borough Council, Leicestershire County Council and Kent Waste Partnership.
According to New Earth’s website, the 6.4-acre 100,000 tpa Canford facility in Dorset (pictured) is leased until 2035. The site has a planning consent for the existing operation until 2027. The company had plans to increase input to 125,000 tpa.
A DWP statement said: “Senior officers are working closely with New Earth’s management team, who have kept us informed throughout their recent internal restructuring. We will carry on monitoring the situation and ensure that our residual waste continues to be processed smoothly and efficiently.”
Larry Austin, director of environment at Bournemouth, said the council was continuing to work with New Earth Solutions, under the joint contract with Dorset County Council for waste disposal and processing.
”Annually around 45,000 tonnes of waste is managed under the contract, and the firm remains operational at this time. We are fully aware of the situation and reviewing the options available to ensure contingency plans are in place.”
The Leicestershire contract for New Earth’s Cotesbach site is with Tarmac. A council spokesperson said officers were looking at the effect the New Earth administration might have on its waste operations.
“Less than a third of the county council’s residual waste has been going to the Cotesbach plant, and we are not currently planning to make alternative arrangements for waste under this contract.”
A Kent County Council spokesman said: “We continue to send our organic waste to the composting facility run by New Earth Solutions (Kent) Limited. There is no suggestion at this stage that our current arrangement needs to be changed. Should that alter, the county council does have contingency plans to ensure waste is properly disposed of.”
MRW has contacted the administrators for comment.