Wincanton lifts lid on WEEE exit

Supply chain management firm claims price volatility in commodity markets prompted sale of recycling assets

Wincanton owned several WEEE processing sites in the UK

Supply chain management firm Wincanton has cited volatility in the commodity markets as the driving force behind its decision to offload its recycling assets.

The company announced yesterday that it was selling off its recycling arm, including its Waste Electrical and Electronic Equipment (WEEE) processing plants, to rival firm Sims Recycling Solutions.

In a statement to ChannelWeb, Wincanton said it had decided to sell up because market forces and pricing pressures had made it difficult to generate predictable revenue.

It stated: “Revenue from Wincanton’s WEEE processing activities is generated through the sale of recyclate on commodity-based markets, which have been subject to significant price volatility over the past two years.

“The unpredictable nature of these markets creates an element of uncertainty that is not consistent with our plans for sustainable growth in the medium to long term.”

Wincanton has been a staunch supporter of the WEEE directive over the past couple of years.

The firm has previously invested millions in acquiring WEEE processing plants in the UK and one of its management team was a member of the directive's recently axed advisory board.

The statement also revealed the firm had been approached by a number of other parties interested in acquiring its assets before Sims stepped in.

It added: “Wincanton is committed to delivering shareholder value first and foremost, and the sale of our recycling business to a specialist operator represents a compelling opportunity to realise immediate value from our activities.”