Lehman Bros. takes stake in waste management company

Lehman Brothers announced it has taken a minority stake in Newcastle, U.K.-based Graphite Resources, a waste management company utilizing a steam autoclaving process.

The investment is to help Graphite Resources build a new plant on the banks of the river Tyne in Gateshead, North East England.

According to the companies, the new facility is to utilize a steam autoclaving process and will be capable of treating up to 410,000 tonnes of waste streams per year.

A process similar to the one used by hospitals and dentists to sterilize equipment, Graphite Resources said its technology offers a 75 per cent diversion from landfill and can reduce waste to less than 20 per cent of its original volume.

In a single autoclave load, the company said it can process up to 20 tonnes of (black bin bag) waste, sorted or unsorted, in one hour.

During the process, all foodstuffs, paper and organic cellulose material become a fibrous, byproduct called CellMatt; plastic is softened and reduced in volume; tin cans, glass, aerosols, steel and aluminum are delacquered and steam cleaned.

After the process is complete, the CellMatt can be used for a variety of applications including biofuel or insulation for the construction industry, said the company.

While specific cost and price comparisons were unavailable, the waste management company claims its process allows for lower operating costs than traditional methods and a higher sell on profit per load.

According to Lehman Brothers, the management team and other investors have invested in the forthcoming plant.

The companies ancipate the £50 million recycling plant to begin operation towards the end of 2009.