Barking Essex, London, England 04 July 2012 -- Silverdell PLC (AIM: SID), the Specialist Environmental Support Services group, is pleased to announce that it has secured two decontamination and dismantling contracts worth a combined total of approximately £13m. The work is being carried out on sites in Canada for two separate multi-national companies. These contracts were secured since 30 May 2012, when Silverdell announced the acquisition of EDS, a specialist provider of decommissioning and dismantling services.
The first contract, worth approximately £10.7m, involves the complete disinvestment of a plant in Milhaven, Ontario for an International Specialist Material Company in the Chemicals sector. This will include decontamination, demolition and selective dismantling as well as asset recovery and the marketing of equipment for re-use. The project also includes the £1.25m of asbestos removal work previously announced by Silverdell on 11 May 2012. Work has just commenced and is expected to run for around 60 weeks.
The second contract, worth approximately £2.2m, is for an international pulp and paper company and involves the dismantling of a pulp and paper mill plant in Chandler, Quebec, as well as the recovery of pulp and paper mill equipment for reuse in Vietnam. Work has just begun and is expected to complete in 16 weeks.
Sean Nutley, Chief Executive Officer for Silverdell Plc, commented:
"When we announced our intention to acquire EDS, we said that we believed it would be a transformational acquisition that would be immediately earnings enhancing, and would grant us immediate scale and capability internationally, with Canada as a target market. We also stated our belief that the acquisition would enable us to win large contracts with multi-national corporations.
"These contract wins validate the strategic rationale behind our acquisition of EDS and further underpin our confidence for 2013. The enlarged Silverdell Group provides a unique end-to-end suite of remediation, decontamination and decommissioning services. This makes us a very attractive partner to blue chip customers in high hazard highly regulated sectors. We look forward to announcing further contracts wins in due course."