Pennon buys recycle firm for £23m

Shire has operations in Perth, Manchester and St Helens

The company which owns South West Water has bought a recycling firm in a deal worth about £23m.

The Exeter-based Pennon Group has bought Scotland-based business Shore Recycling in order to bolster its waste management arm, Viridor.

Shore, which was set up six years ago and handles fridges and other electrical items, has operations in Perth, Manchester and St Helens.

Pennon said it expected a big growth in the recycling of electrical equipment.

Track record

Pennon is buying the business from three individuals, including Shore's founder Simon Howie and commercial director Malcolm Todd.

It said the UK's recent implementation of the European Union's waste electrical and electronic equipment directive meant this area of recycling was expected to grow quickly.

Viridor's chief executive Colin Drummond said: "The UK's waste strategy demands ever-increasing levels of recycling, particularly now in the area of waste electrical and electronic equipment.

"Shore has an excellent track record in leading the way in this market in the north of the UK and is well placed to capitalise on this opportunity."

Landfill ban

Shore was launched by Simon Howie after legislation banning fridges from being taken to landfill sites presented a potential business opportunity.

The company secured contracts with a large number of Scottish local authorities and has now recycled more than one million fridges at its Perth site.

Shore's workload has also been boosted by the EU directive limiting the amount of electrical waste going to final disposal. This includes IT equipment, lighting and large household appliances.

Viridor operates 25 regional landfill sites, a number of regional recycling facilities and 189 waste processing sites.