Chemviron Carbon, the European operating group of pollution
Calgon Carbon Corporation
), has won a 10-year contract from Thames Water to reactivate
spent activated carbon used to treat drinking water. Thames is
the largest provider of drinking water and wastewater services in
The contract value will depend on the amount of carbon
reactivated on an annual basis, which is expected to be around 11
million lbs (5,000 million tons).
Chemviron is expected to complete the $9.5-million renovation
and expansion of the Tipton plant (Tipton) located near
Birmingham, U.K., in 2014. Thereafter, Chemviron plans to
reactivate the spent carbon at the facility.
Tipton plant's production capacity is expected to increase to
18 million lbs (8,200 million tons) from 13 million lbs (5,800
million tons) after the plant's renovation and expansion.
However, until the completion of the expansion activities,
Thames' carbon will be reactivated at Chemviron Carbon's
facilities in Grays, UK and Feluy, Belgium.
Management claims Chemviron to be the most effective
reactivator in the UK. It offers water utilities and a
comprehensive range of value-added technical and site services.
Thames Water provides high-quality drinking water to their
customers. Thus, the collaboration will strengthen Calgon Carbon
and Thames' decades-old relationship.
Calgon Carbon delivered impressive first-quarter 2013 results
on May 6. The company's earnings topped the Zacks Consensus
Estimate, but sales fell short. While Calgon Carbon is expected
to gain from its cost reduction and pricing actions, it remains
exposed to currency headwinds and weakness in its equipment
Calgon Carbon remains confident in its ability to balance the
need for future investment with responsibility to provide
short-term returns. The company continues to focus on ballast
water treatment, reactivation services and mercury removal as its
basis for sustainable growth. It remains focused on improving
margins across all regions. However, its strategic initiatives
position it for significant growth in the longer term.
Calgon Carbon retains a Zacks Rank #1 (Strong Buy).
Other companies in the pollution control industry worth
CECO Environmental Corp.
Perma-Fix Environmental Services Inc.
Pure Cycle Corporation
). While CECO retains a Zacks Rank #1 (Strong Buy), both Perma
and Pure Cycle hold a Zacks Rank #2 (Buy).
CALGON CARBON (CCC): Free Stock Analysis
CECO ENVIRNMNTL (CECE): Free Stock Analysis
PURE CYCLE CORP (PCYO): Free Stock Analysis
PERMA-FIX ENVIR (PESI): Free Stock Analysis
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