Securing funding for infrastructure will become more challenging in an uncertain global market, according to Viridor external affairs manager Dan Cooke.
Cooke said that the waste industry often sees a delay of six months or more between changes in the wider economy and its impact on the recycling industry.
Cooke made two key points on how the economy would affect the waste industry: Between now and 2013 as an industry we need to provide substantial increased capacity to reach the European Union targets. There may be a six to twelve month delay before we get clarity in this area while the banks overcome their immediate and extremely challenging hurdles.
The likely effects on the retail sector may see recyclate from the sector, and to a lesser degree from households, slow down. Recyclate and wastes from other specific sectors are also likely to be affected as we have already seen in construction materials.
Parent company of Veolia Environmental Services, Veolia Environnement, will hold a meeting of investors on October 22 to review its performance during 2008 within the context of the financial crisis and global economic slowdown.
Veolia Environnement put out a statement which said: In the waste management business, Veolia Environnement has experienced a clear slowdown in business activity since the beginning of the summer. The effects of the economic slowdown (decline in tonnages both collected and treated) and the decrease in raw material pricing (paper, metals) have been particularly felt in the French and German business activities.
In addition, certain elements have also weighed upon this years profitability: temporary shutdown and delay of certain incineration installations in Italy, and the implementation costs for the restructuring plan and the closure of a waste disposal facility in Germany."
Overall, Veolia Envrionnement expects 2008 operating revenue to be between 4,100 million Euro and 4,200 million Euro.