Completion of Swansea Plant

TEG Group (The) PLC 06 February 2007 For release 7:00am 6 February 2007 The TEG GROUP PLC (TEG) ('TEG' or 'the Company') Completion of £920k Swansea Plant The TEG Group Plc ('TEG' or 'the Company'), the AIM-listed cutting edge green technology company, which converts organic wastes into natural organic fertiliser, announces it has completed the construction of the TEG Silo Cage plant for the City and County of Swansea. The plant has been operating under TEG management since November 2006 and following training and mechanical completion it was handed over to the City and County of Swansea on 5 February 2007. The plant at Swansea is designed to process mixed garden and kitchen waste and has been processing these materials since household collections began in November 2006. The final invoiced contract value was approximately £920,000. The original contract estimate of £925,000 included a contingency element of £5,000 for potential planning appeal work. As the planning and licensing process went smoothly this contingency was not utilised. TEG will continue to work closely with The City and County of Swansea and will lead the Authority in gaining State Veterinary Service (SVS) approval for the plant, a process that is expected to be completed by Quarter 2 of 2007. TEG will provide a 12 month warranty period that commences after the SVS approval is obtained. ENDS Contact: The TEG Group Plc Tel: 01772 314100 Michael Fishwick, Chief Executive Adventis Financial PR Tel: 020 7034 4760 / 020 7034 4758 Peter Binns/ Tarquin Edwards 07768 392 582 / 07879 458 364 Cannacord Adams (Nomad) Tel : 020 7050 6742 Chris Bowman Editor's Notes: TEG provides an in-vessel composting technology, which is one of the few approved technologies capable of treating animal by-product (ABP) waste. Plant economics are predominantly driven by the gate fees charged, rather than the value of the end product (compost). The TEG process is an economic alternative to landfill. The Silo Cage system, one of the few technologies in Europe capable of treating this waste, is a natural process producing compost as an end product, used as an excellent soil conditioner that fertilises, retains moisture, provides structure and reduces the incidence of plant disease. TEG's Silo-Cages are housed in self-contained buildings, are not unsightly and are environmentally friendly. Customers include local authorities, waste management companies, food processors, farmers and landowners. The Company's expanding market is driven by increasingly stringent EU and UK legislation regulating the treatment and disposal of organic waste. Statutory targets for the diversion of waste from landfill increase annually through to 2020, increasing TEG's market opportunity year on year. The Waste Resource Action Programme estimates that 450 composting plants will be needed by 2020 to satisfy local authority requirements alone, and there is increasing demand from the private sector driven by ABP legislation. NOFCO is a marketing company specialising in the development of end markets for compost products, an important aspect of all plant developments and key to local authority development. The company has an expertise in the development of agricultural and horticultural markets and this capability is to be provided to customers to enhance TEG's overall service offering. This information is provided by RNS The company news service from the London Stock Exchange
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