Change in CLO requirements
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Premier Waste Management has received noticed from the Environment Agency to a change to their requirements for this material. Previously, CLO not shown to have reached the required temperature was allowed to be used for landfill restoration. Information received today, March 19^th from the Environment Agency indicates that such material must be landfilled. In addition the Environment Agency has drawn our attention to a need to reduce the amount of plastics and glass in the CLO.

The Company remains committed to the Parc technology and believe the operational control problems that have lead to this regrettable situation can be quickly and effectively eliminated. We have already embarked upon a major re-engineering programme associated with the Thornley plant which comprises the following key elements:

• Installation of a new temperature monitoring system
• Installation of a substantial heater phase in the bottom compartment of each tower which will ensure absolute achievement of Animal Products temperature requirements.
• The application of insulation to the outer skin of the metal towers to improve heat retention.
• The installation of a new trommel screen to improve the CLO segregation stage and reduce physical contaminants. This equipment is actually being delivered today.