Swedish company Studsvik AB has signed an agreement to divest its waste treatment business, which generated £14.9 million worth of revenue in 2015, to French energy company EDF.
The SEK 355 million (£30.3 million) deal will include the company’s facilities in the UK and in Sweden and finalisation is dependent upon necessary waste treatment business licenses and permits being granted.
The move, which is expected to be finalised in the third quarter of 2016, will generate positive cash flow of around SEK 225 million (£19.2 million) and affect Studsvik’s net profit by approximately 115 million SEK (£9.8 million).
EDF and Studsvik will collaborate in areas of nuclear decommissioning and waste management in the future as part of the deal.
Waste treatment operations
Studsvik acts as a radiation protection advice body and provides technical services to the international nuclear power industry. It has four sites in the UK at Gateshead, Preston, Aldermaston and Workington.
The waste treatment side of its business occurs at Nykoping, Sweden and at the Workington UK site where metallic items from low-level radioactive waste are recycled, free released or volume reduced for stabilisation to minimise environmental impact. It is then returned to the client for final storage.
EDF, the majority of which is owned by the French Government, will continue to develop the waste treatment business which will include the Nykoping waste treatment facility and the metal recycling facility near Workington.
The company also claims it will “safeguard skills and competencies at the Swedish and UK sites and support local employment”
Studsvik will develop fuel and materials technology
Commenting on the sale, Michael Mononen, Studsvik CEO, said: “The divestment of the Waste Treatment business and the cooperation agreement with EDF position Studsvik for growth, building on a more stable and focused business platform.
“We will continue develop our Fuel and Materials Technology, and Consultancy businesses, not only in our home markets of Sweden, UK, Germany, USA and Japan, where many of our customers are preparing to decommission, but also in growing nuclear markets in Asia and the Middle East. The Transaction allows us to capitalize on our unique experience and capabilities and focus on delivering increased value for our customers and shareholders.”
Get our weekly digest
resource.co article ai
How will the government and DMOs address the challenges of including glass in DRS while ensuring a level playing field across the UK?
There's no easy solution to include glass in the DRS while maintaining a level playing field. Potential approaches include a phased introduction of glass, potentially with higher deposits to reflect its logistical challenges. The government and DMOs could incentivise innovation in glass packaging design and subsidise dedicated return points for glass-handling. Exemptions for smaller businesses unable to handle glass might also be necessary. Any successful solution will likely blend several approaches. It must address the differing priorities of devolved administrations, balance environmental benefits with logistical and cost implications, and be supported by robust consumer education campaigns emphasizing the importance of glass recycling.