Specialist environmental support services group Silverdell has signed a contract with Canada's largest electricity generator, Hydro Qubec, for the decommissioning and parts re-sale of its redundant Tracy thermal power plant in a project worth approximately 12m pounds in revenues to Silverdell.
Under the terms of the agreement, AIM-listed Silverdell will market approximately 37,000 tonnes of re-usable plant, equipment and metals for industrial sale.
The group will then undertake the decommissioning of the power plant, including asbestos removal, dismantling and the sale of the reusable assets.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Work is scheduled to commence in the second quarter of 2013 and is expected to complete within 12 months.
Referencing its acquisition of EDS, a specialist provider of decommissioning and dismantling services earlier in the year, Sean Nutley, Chief Executive Officer of Silverdell, commented: "A key part of our growth strategy, 'Changing the Landscape', as set out in our preliminary results statement last December, is to leverage our enhanced scale and capability to exploit new market opportunities worldwide. That is exactly what we have done with this contract.
"The acquisition of EDS afforded us entry to the high value global decommissioning and re-sale market with a project which is ideally suited to our end-to-end service offering."
Silverdell's share price rose 3.76% to 17.25p at 11:13 on Monday.
MF
-
‘I installed a heat pump in my home – here are five things I’ve learnt’From the size and noise of a heat pump to how much it costs to run one, Ruth Emery reveals what she’s learnt after installing one in her home six months ago
-
3 ways to work out if a stock is good valueThe only thing you can really control in investing is the price you pay for an asset – but how can you tell if you’re getting a good deal when it comes to the price of a stock?
