Geminor acquires resource management company Rekom
Geminor acquires the Norwegian competitor Rekom AS, strengthening its position in the Nordic secondary fuels and materials recycling market.
Rekom was founded in 1998 by 52 municipalities and waste companies from all across Norway. In recent years, Rekom has struggled to stay profitable in delivering management services within material recycling and energy recovery, in an increasingly competitive market. As a consequence, the Rekom leadership decided to move for the company to cease trading in October this year.
Soon after the decision to close was made public, Geminor met with the Rekom leadership and commenced a process to take over the company. The contract signed on Thursday this week confirmed the new ownership of Rekom AS, by Geminor AS.
CEO of Geminor, Kjetil Vikingstad, comments on the contract:
– The agreement states that we are committed to fulfil contracts that Rekom holds until 2022. Thus, we will maintain the downstream management solutions for many municipal companies, saving them from being forced to renegotiate contracts in a challenging market. Rekom will be integrated into our portfolio, a move we believe will improve flexibility and logistics for the customers, says Kjetil Vikingstad.
Chairman of the Rekom disposal board, Leif-Magne Hjelseng, comments on the outcome and the takeover by Geminor.
– It is regrettable that Rekom ended up in this situation, but we are satisfied with the final process making Geminor the new owner. A takeover is a far better outcome than liquidation, leading to less uncertainty for all parties involved, says Leif-Magne Hjelseng.
The existing Recom contracts amounts to approx. 100,000 tonnes of residual waste, waste wood and paper. The acquisition means that Geminor now increases operations in Norway by around 20 percent.
– Although the acquisition of Rekom was not strategically planned, this is still in line with our growth strategy in the Nordics. We now have a company volume that makes us a long-term and convincing alternative for municipal companies and recycling facilities in the country. This acquisition will also ensure that a healthy competition is maintained in the Norwegian waste market, concludes CEO of Geminor, Kjetil Vikingstad.
Geminor currently has three logistics and processing HUBs in Norway, and has further operations in Sweden, Denmark, Finland, Germany, UK and Poland. Geminor is one of the major players in waste management, logistics and recycling services in Europe.