Ben Stanyon looks at issues facing the waste management and recycling sector
The recent announcement that Kent based Aylesford Newsprint has filed for Administration is further confirmation of the issues facing the recycling and waste management sector. This follows UPM’s announcement that it will be decommissioning one of its two newsprint machines in Deeside. So what are the issues facing the sector? Ben Stanyon, Senior Manager at Moorfields Corporate Recovery expands:
“Waste management is a highly regional, competitive and fragmented market. Legislative changes such as landfill tax and the sustainability agenda have left many firms with cash flow issues as they struggle to deal with complex value chains and a gradual, but significant, national decline in waste arisings.
Moorfields were recently appointed Liquidators of Ideal Waste Paper Company, a supplier and fellow waste recycler just 10 miles down the road from Aylesford Newsprint. Ideal Waste Paper had many of the classic signs of distress in the sector, with high volumes of waste retained on the business premises due to the cost of disposal.
The sector is clearly in a fundamental transition, and many structural changes will need to be effected to prevent further businesses in the sector seeking restructuring or filing for an insolvency process.”
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