Impetus Waste Management has entered administration, laying off 73 staff at its waste transfer station in North Tees and Leeds.
It has also sold its two landfill and composting facilities at Cowpen Bewley and Teesport to Highfield Environmental.
Impetus took a hit in April when one of its major trading partners, Air Products, announced it would mothball its multi-million pound energy-from-waste project on Teesside.
With contracts to collect waste for Hull City and North Lincolnshire councils, Impetus was due to send a substantial quantity of refuse-derived fuel (RDF) to the TV1 and TV2 facilities (pictured).
In addition, the company’s waste transfer stations were losing money and facing additional difficulties due to increased market pressures. Before entering administration, management sought to cut costs but this was not enough to continue trading.
The sale of the landfill and composting facilities to Highfield has safeguarded 31 jobs at these locations and at its head office in Wynyard.
But 73 people employed at the waste transfer stations in North Tees and Leeds were made redundant with immediate effect.
Joe O’Connor and John Sumpton from EY’s restructuring team have been appointed joint administrators of the company, which is registered as Green North East Trading Bidco Limited.
O’Connor said: “The absence of viable alternative RDF off-takes made the waste transfer station facilities unsustainable. The management team looked to identify UK and export opportunities for the RDF produced at these facilities but the volumes and prices achieved were unfavourable.
“Despite internal improvements in efficiency, the company’s management were sadly unable to return this part of the business to profitability, resulting in today’s decision to place Impetus into administration.”
He said the landfill and composting facilities remained profitable but were unable to fully support the waste transfer business.
A North Lincolnshire Council spokesperson said the authority now needed to procure another contract to handle the waste Impetus collected.
”In the meantime, we have put in place arrangements to ensure that the waste collected from households and businesses is lawfully disposed of.”