Renewi has announced the sale of its non-core Westcott Park anaerobic digestion (AD) facility to Olleco (ABP Food Group’s Renewables Division) for an undisclosed sum.
The sale, completed 28 March 2018, reflects the decision by the Board to exit the loss-making facility in line with its strategy to actively manage its municipal portfolio to improve group margins and returns.
The Board said this exit has been achieved quicker than expected and that, under new ownership, the facility is expected to benefit from scale thereby enabling it to operate optimally in the future.
“We are taking decisive action to improve the performance of the Division and this demonstrates we are delivering against that recovery plan.”
As part of Olleco the facility will be part of a network of plants servicing the food service sector as part of a fully closed loop operation.
Olleco serves 50,000 customer sites and employs over 600 people across the UK. All employees based at Westcott Park will transfer over to Olleco so maintaining job security for all working at the facility.
James Priestley, Managing Director of Renewi’s Municipal Division said: “The sale of our Westcott Park facility is completely in line with our strategy to actively manage our Municipal portfolio.
“We are taking decisive action to improve the performance of the Division and this demonstrates we are delivering against that recovery plan.
“The facility and the team based there will now be part of an operation exclusively focused on the food waste market which will be beneficial for customers and suppliers as well as the people based at the facility. We will now work with Olleco to ensure a seamless transition.”