Shanks Group Lands Large Contract

The U.K.-based waste management firm Shanks Group plc has signed a 25-year Public-Private Partnership waste disposal contract with Cumbria County Council worth around £720 million (US$1.16 billion).

Financial closure of the contract to handle around 220,000 metric tons per year was reached with a syndicate of three banks - Sumitomo Mitsui Banking Corporation, Barclays and NIBC.

The contract - Shanks' fourth UK PFI/PPP contract - will see Shanks develop two Mechanical Biological Treatment facilities, each able to treat 75,000 metric tons of waste per year, as well manage Cumbria's existing household recycling centers. This will enable Cumbria to divert 67 percent of its household waste from landfill by 2015.

The new facilities will allow Cumbria to significantly increase the amount of recyclables it recovers while producing a solid recovered fuel.

Tom Drury, Shanks' Group CEO, said: "PFI partnerships are a key component of our UK strategy and we're delighted to have secured this significant contract gain with a major local authority.  We now look forward to working with Cumbria County Council to minimize the amount of waste sent to landfill and to maximize the opportunities for recovery and recycling of their waste materials."