Defence firm expands into waste management

Wakefield Metropolitan District Council has chosen the defence specialist company, VT Group, as its preferred bidder to design, build, finance and operate waste management and recycling facilities in the areas under its jurisdiction as part of a programme valued at more than £700m.

VT Group will begin construction of new facilities and infrastructure in 2009, and in the meantime will take over the existing facilities, where it is expected to benefit from initial revenues following financial close some time in 2008. The company will subsequently manage the waste recycling sites for a 25 year period.

Wakefield has already secured government Private Finance Initiative (PFI) funding of £33 million for the project, which is valued at £700 million.

Southampton-based VT will build an autoclave, in-vessel composter, anaerobic digester and a materials recycling facility, to treat up to 200,000 tonnes of Wakefield’s waste each year. 

“The waste management sector will grow considerably over the next few years as EU directives restrict the amount of waste that can be put into landfill,” said chief executive Paul Lester.

“”We believe there is major potential for VT in this market, using our engineering skills, and Wakefield marks a significant first step in this new business,” he added.