EnvironCom Information
The waste recycling sector is growing rapidly in Europe through the combination of financially mandatory schemes (such as for packaging, electronic waste, etc), the 'producer responsibility' concept, whereby legislation is implemented to make producers of goods (financially) responsible for dealing with the products at the end of their life, and the value of the recycled products.
Aloe has identified Electronic Waste (WEEE) as one of the most attractive sectors because it is still a very fragmented market with a strong regulation coming into force only this year in some European countries, and significant volumes (1.5 million tons of WEEE in UK household waste in 2007, plus an additional 0.4 to 0.5 million tonnes of B2B WEEE).
After due diligences conducted on several companies, Aloe took in July 2007a large minority stake in EnvironCom Ltd. EnvironCom, headquartered in Glasgow, was set up in 2003 by a group of successful entrepreneurs and is currently run by a seasoned management team with good understanding of the WEEE issues. The first plant in Grantham has been operating for the past 3 years and has now an efficient and quite impressive mechanical process for refrigerators, CRT's, car bumpers and facia assemblies recycling.Aloe sits on the board of the company.
Unfortunately, on Sunday 16th September 2007, a fire completely destroyed the EnvironCom plant in Grantham, Lincolnshire (UK). Fortunately, no one was injured and at present time the cause of the fire is still being investigated.
Aloe's team is now working with the company to find the best strategy for the company's future in order to continue its growth and to preserve the interest from the strong customers base of EnvironCom. Several strategic options are being considered at present time.