Sinclair (William) Holdings PLC SuperFyba production to increase by 200% (6731H)

TIDMSNCL

RNS Number : 6731H

Sinclair (William) Holdings PLC

16 July 2012

William Sinclair Holdings PLC

('William Sinclair' or 'the Company')

SuperFyba production to increase by 200%

William Sinclair, one of the UK's leading suppliers of growing media, announces it is to commission a second SuperFyba production facility in the north of England. SuperFyba is the Company's unique, peat free product that has been used extensively at the development of the Olympic Park in London.

The GBP1.5 million investment in the new plant will be funded from the Company's existing facilities. The new plant will increase the amount of SuperFyba the Company produces by over 200%, lifting production to around 150,000m3 per annum. Demand for peat free material continues to grow in the UK horticulture sector partly driven by the government target of eliminating peat use in horticulture by 2030.

Production of SuperFyba at the new site is due to commence in November 2012. The increased availability of this peat alternative will bring significant reductions in non peat raw material costs and at the same time enhance the consistency of our already high quality peat reduced and peat free products.

Garden and amenity green waste generated in nearby urban areas will be supplied to our site by local authorities and other organisations. These suppliers will benefit from increased recycling levels and potentially from lower disposal fees. The Company has established a number of medium term contracts to take the material from these suppliers and has thereby secured better control over both the volume and quality of the source material.

The investment in the new production facility will move William Sinclair a further step towards reducing the Company's exposure to a poor peat harvest due to inclement weather. Haulage costs will also be reduced as raw material transport miles are minimised.

William Sinclair's specialist soils subsidiary, Freeland Horticulture, which developed the SuperFyba technology, will operate the new production facility. The feedstock for the process, called "oversize", is widely available but is difficult to use. It frequently becomes a disposal liability for waste recycling companies. Freeland Horticulture's technology removes salts, glass, plastics, metals and stones that normally contaminate the composted material, and then fiberizes the cellulosic component to create SuperFyba.

SuperFyba has similar qualities to peat namely good water retention and a low nutrient level. It is nitrogen stable, lightweight, looks like peat and is made from entirely renewable sources.

Bernard Burns, Chief Executive, William Sinclair Holdings PLC, said:

"The opening of a second site to manufacture SuperFyba is in line with both the Company's growth strategy and the Company's drive to create greater efficiencies. The Board fully expects the new site to bring financial benefits to the Company in the near term.

"Consumers are demanding higher quality peat free products and William Sinclair continues to lead the industry in quality and innovation. SuperFyba is a premium and sustainable material that reliably supports plant growth, thereby providing the reassurance the horticulture industry and retailers are seeking.

"With the continued market growth of peat free products, opportunities to open further SuperFyba manufacturing sites are being reviewed."

For further information:

www.william-sinclair.co.uk

 
 William Sinclair Holdings   Tel: 01522 537561 
  Plc 
 Bernard Burns, Chief Executive 
 Peter Williams, Finance Director 
 
 
 Westhouse Securities   Tel: 020 7601 6100 
 Tom Price 
 Adam Lloyd 
 Paul Gillam

This information is provided by RNS

The company news service from the London Stock Exchange

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