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Newalta announces $87 million capital spending

Newalta Inc. ("Newalta") (TSX:NAL) has announced its planned capital budget of $87 million for 2010. Growth ca...


Newalta Inc. (“Newalta”) (TSX:NAL) has announced its planned capital budget of $87 million for 2010. Growth capital expenditures of approximately $60 million are comprised of $35 million for Onsite Services, with the majority to support the growth in the Heavy Oil business unit, and $20 million in Facilities, divided equally between facilities located in eastern Canada and western Canada. The remaining $5 million in growth capital expenditures are for corporate investments. Maintenance capital expenditures are budgeted to be approximately $27 million. Included in the maintenance capital budget is approximately $9 million for the construction of additional landfill cells, primarily at Stoney Creek Landfill. At current landfill volumes the Stoney Creek Landfill has an estimated life of 10 years and the expenditures in 2010 will be directed at the construction of an additional landfill cell to provide capacity for approximately two years. The capital expenditures will be funded from funds from operations, with approximately 40 per cent expected to be spent in the first half of 2010.

Newalta also announced that effective January 1, 2010, it will reorganize its reporting structure into two divisions- – Onsite and Facilities — in order to better align the business for continued growth. Newalta will maintain the current reporting structure of Western and Eastern divisions for the remainder of fiscal 2009.

“Our onsite services have grown dramatically over the past few years and now represent 25 per cent of revenue. This is a national business with shared resources and technical expertise directed primarily at large customers with complex environmental challenges,” said Al Cadotte, Newalta’s President and CEO. “The onsite business is primarily contractual in nature and involves sales, finance and management capabilities distinctly different from our facilities business.”

The reorganization of the two new segments will be as follows:

    Onsite

       Western Business Unit

       Eastern Business Unit

       Heavy Oil Business Unit

   

    Facilities

       Western Business Unit

       Eastern Business Unit

       Ville Ste-Catherine (VSC)

There will be no changes to the current key performance indicator disclosure information provided in Newalta’s MD&A, other than it will be provided under different divisional headings. Newalta will provide historical financial information based on the new segments in early 2010.

In addition, on January 1, 2010, Newalta Inc. will amalgamate with its wholly-owned operating subsidiary, Newalta Corporation. In connection with this internal reorganization, the name of the resulting public entity will be changed to Newalta Corporation. Both Newalta’s shares and debentures will continue to trade under the same respective symbols of NAL and NAL.DB and shareholders and debenture holders will not be required to take any action with respect to their share certificates.

Newalta Inc. is Canada’s largest industrial waste management and environmental services provider and focuses on maximizing the value inherent in industrial waste through the recovery of saleable products and recycling. It also provides environmentally sound disposal of solid, non-hazardous industrial waste. With talented people and a national network of facilities, Newalta serves customers in the automotive, construction, forestry, lead, manufacturing, mining, oil and gas, petrochemical, pulp and paper, refining, steel and transportation service industries. Providing solid investor returns, exceptional customer service, safe operations and environmental stewardship has enabled Newalta to expand into new service sectors and geographic markets. Newalta trades on the TSX as NAL.

For more information, visit www.newalta.com or contact Anne MacMicken, Executive Director, Investor Relations, 403-806-7019.


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