Cleanaway

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Cleanaway
ASX: CWY
IndustryWaste management
Founded1979
FounderBrambles
Headquarters
Melbourne
,
Australia
Key people
Mark Chellew (Chairman)
Revenue$2.1 billion (FY2020)
$515.7 million EBITDA
Number of employees
6,000+ (2020)
Websitewww.cleanaway.com.au

Cleanaway Waste Management Limited is an Australian waste management company. It claims to employ over 6,000 people across Australia and operate over 5,300 trucks from more than 250 branches, as well as a range of static facilities.[1] They are the largest waste management business in Australia.[2][3]

History[]

A Cleanaway municipal solid waste collection truck in the United Kingdom

Brambles entered the waste management and disposal industry in 1970 when it purchased the Australian waste collection and disposal services of the Purle Group.[4][5][6] In 1979, it began trading as Cleanaway.[7]

Cleanaway expanded into Europe in the 1990s, purchasing businesses in the Netherlands, Germany and the United Kingdom.[8][9][10][11] By 2003 the UK operation employed over 8,000 people.[12] The German business was sold in 2005.[13]

In June 2006, Brambles sold Cleanaway to KKR, who then sold it to Transpacific Industries in May 2007.[14][15][16] Transpacific Industries was formed in 1987, expanding through organic and strategic growth.[17] The combined entity would continue to trade separately as Transpacific Industries and Cleanaway for ten years. In September 2013 the Commercial Vehicles Group that sold Dennis Eagle, MAN and Western Star Trucks was sold to the Penske Automotive Group.[18][19]

In late 2015 the company rebranded to Cleanaway Waste Management, dropping the Transpacific name.[20]

In May 2021, Cleanaway announced they had installed a new collision avoidance system based on Mobileye technology in most of their heavy vehicles nationally, after completing an earlier trial with the Victorian solid waste service fleet in 2019.[21] As of April 2021, Cleanaway has also been trialling electric collection trucks on a council-by-council basis in Australia, starting a contract with city of Adelaide.[22][23]

Legal issues[]

On May 15, 2000 an accident at Cleanaway UK's Ellesmere Port toxic waste incinerator killed an employee and seriously injured another. The plant had been shut down to allow replacement of steel structures, and the men were on a scaffolding platform when over a tonne of concrete fell on them. Following a Crown Court trial Cleanaway was convicted of health and safety failings, and fined £200,000 plus £135,000 in costs.[24]

Cleanaway's UK subsidiary was the first company ordered to pay compensation to a worker under the Employment Equality (Sexual Orientation) Regulations 2003, after a gay manager quit following persistent harassment from his seniors because of his sexuality.[25] The case received widespread media attention, with the victim commenting that prior to the case he had tried to keep his sexuality a private matter.[12] The Guardian described it as a landmark judgement, while a Stonewall spokesperson said the ruling showed such abuse "was no longer going to be tolerated" and compared the remarks directed at the victim to "jokes about 'Pakis'" from previous decades.[26]

In April 2017 Cleanaway was issued a fine of $650,000 for a fire at a chemical waste processing facility in which a worker was seriously burned. The sentencing judge accused Cleanaway of initiating a trial process despite giving workers limited information about the trial and the new chemical involved. This was the largest fine ever handed out at a Comcare-initiated prosecution.[27]

In August 2014, a Cleanaway sewage tanker truck collided with many cars at the lower part of the South Eastern Freeway, killing two people.[28] Following the accident the company pulled 2,800 trucks from service for inspections, disrupting waste collections for days.[29] The sewage truck ran away after the driver, a new employee who had never driven a manual truck before and had never driven any vehicle on this segment of road, lost control after passing the arrestor beds. Driver Darren Hicks was seriously injured and testified against Cleanaway at a criminal trial after being granted immunity.[30] The prosecution, brought by Comcare, also heard that the brakes on the vehicle were defective and in 2021 Cleanaway were convicted of eight charges under health and safety legislation.[31]

In May 2020 vivasol leaked from a Cleanaway facility in Queanbeyan and entered the Molonglo River, with a further discharge occurring the following month. The New South Wales Environment Protection Authority in March 2021 charged Cleanaway with two water pollution offences and with allegedly taking five hours to notify them of the first incident. As a result of the leak the EPA mobilised 50 inspectors to simultaneously perform unannounced inspections of 27 Cleanaway locations. Three were fined a total of $31,500 for inadequate recordkeeping and waste storage, including two that had previously received fines for improper waste storage.[32] The EPA also described finding "consistent areas of concern" and criticised Cleanaway's "management of its operations" following the inspections.[3]

Acquisitions history[]

Cleanaway announced it was acquiring Tox Free Solutions, including its subsidiary Daniels Health, in December 2017.[33] Regulatory approval was granted by the Australian Competition & Consumer Commission in April 2018,[34] followed by the Australian Federal Court in May 2018.[35]

In 2019, Cleanaway acquired a number of the SKM Recycling Group's assets for $66 million,[36] restoring and reopening the facilities completely by February 2020.[37] The acquisition included two materials recovery facilities and two transfer stations in Victoria, and a material recovery facility in Tasmania.[38] The site in Laverton North, Victoria includes a plastic sorting facility which separates plastics from material recovery facilities into clean, individual polymer grades for sale or input into a pelletising facility.[38] SKM was in substantial debt after the Victorian Environment Protection Authority placed limitations on its waste intake in response to a series of fires involving recycling stockpiles, leading to SKM ceasing waste collections from more than 30 councils with recycling diverted to landfill.[2] The acquisition of Statewide Recycling in late 2019[39] expanded Cleanaway's regional Victoria business, including a transfer station in Warrnambool.[citation needed]

In April 2021, Cleanaway agreed terms to purchase the Sydney operations of Suez Environnement, after Suez and Veolia reached a merger agreement.[40]

Products and services[]

Cleanaway offers:[citation needed]

In addition, Cleanaway also manages several landfills, waste transfer stations and material recovery facilities throughout Australia, turning some received waste into energy and other materials.[41]

Cleanaway has proposed an energy-from-waste facility in Western Sydney. The facility would take residual waste from Western Sydney kerbside general waste collections and convert to energy.[42] In April 2021, Cleanaway launched Greenius, a free online learning resource for residents.[43]

Joint ventures[]

In 2007, Cleanaway formed a joint venture with Veolia and purchased EarthPower, an organic food waste processing facility. The facility uses anaerobic digestion technology to convert food waste into combustible gas similar to natural gas to produce green electricity.[44]

The TOMRA Cleanaway partnership was appointed to be the Network Operator for the New South Wales container deposit scheme (also known as Return and Earn). TOMRA provides the Reverse Vending Machines, and Cleanaway collects and processes the containers from the machines and collection points around New South Wales. As of 25 February 2021, 5 billion containers[45] have been returned since the start of the scheme.

On 19 February 2020, Asahi Breweries, Cleanaway and Pact Group Holdings announced a joint venture to develop a plastic pelletising facility.[46] This facility is expected to process up to 28,000 tonnes of plastic bottles and other plastic packaging. In August 2020, it was revealed that the facility will trade as Circular Plastics Australia (PET).[47]

References[]

  1. ^ Annual report for year ended 30 June 2020 Cleanaway
  2. ^ Jump up to: a b Butler, Ben (21 August 2019). "Cleanaway takes control of SKM amid Victoria's recycling rubbish crisis". The Guardian. Retrieved 16 May 2021.
  3. ^ Jump up to: a b Roddan, Michael (12 October 2020). "Cleanaway safety claims blasted by NSW EPA". The Australian Financial Review. Retrieved 16 May 2021.
  4. ^ Brambles in new industrial waste venture Canberra Times 11 August 1970 page 17
  5. ^ Brambles' New Interest Australian Transport September 1970 page 23
  6. ^ "Our History". Brambles. Retrieved 19 June 2018.
  7. ^ "Our History". Brambles. Retrieved 19 June 2018.
  8. ^ Cleanaway Acquires Major German Waste Operator Brambles 6 April 1998
  9. ^ Brambles sees clear gain in German deal Australian Financial Review 7 April 1998
  10. ^ Advice re: Cleanaway Europe Brambles 9 May 2000
  11. ^ Cleanaway Europe expansion Brambles 9 January 2001
  12. ^ Jump up to: a b Hill, Amelia (30 January 2005). "'Anti-gay taunts made my life hell'". The Guardian. Retrieved 16 May 2021.
  13. ^ Brambles Sells Cleanaway Germany for A$893 Million and buys Ausdoc for A$260 Million Brambles 13 January 2005
  14. ^ Kohlberg Kravis Roberts & Co - acquisition of Cleanaway Australia Australian Competition & Consumer Commission 22 June 2006
  15. ^ Transpacific buys Cleanaway from KKR ABC News 17 May 2007
  16. ^ "Transpacific picks up Cleanaway – Business – Business – theage.com.au". The Age. Retrieved 19 June 2018.
  17. ^ "Transpacific founder Peabody sells his stake". www.theaustralian.com.au. 8 March 2013. Retrieved 31 March 2020.
  18. ^ Penske Will Pay $200 Million for Australian Truck Company The New York Times 28 July 2013
  19. ^ Penske buys CVG from Transpacific Trade Trucks 29 July 2013
  20. ^ Conroy, John (21 September 2015). "Transpacific to become Cleanaway". Herald Sun Australia. Retrieved 19 June 2018.
  21. ^ "Cleanaway national fleet gains new safety technology". FullyLoaded.com.au. Retrieved 5 September 2021.
  22. ^ "Adelaide councils engage in e-truck trial". OwnerDriver.com.au. Retrieved 5 September 2021.
  23. ^ Evans, Simon (11 June 2019). "Cleanaway sees good signs from electric rubbish trucks". Australian Financial Review. Retrieved 5 September 2021.
  24. ^ "Firm to pay £335,000 over death of worker". Cheshire Live. 15 October 2003. Retrieved 16 May 2021.
  25. ^ "First successful claim for sexual orientation discrimination". CMS Law-Now. 3 February 2005. Retrieved 16 May 2021.
  26. ^ Wainwright, Martin (29 January 2005). "Landmark ruling on homophobic taunts". The Guardian. Retrieved 16 May 2021.
  27. ^ Clyde and Co. "Construction company receives record NSW fine for electric shock". Lexology. Retrieved 16 May 2021.
  28. ^ "Horrific South Eastern Freeway truck crash claims second life in Adelaide". Archived from the original on 22 August 2014. Retrieved 2 April 2015.
  29. ^ "UPDATE: Residents urged to leave garbage bins on kerb during nationwide grounding of collection fleet". 9news. 20 August 2014. Retrieved 16 May 2021.
  30. ^ Dillon, Megan (2 December 2019). "Cleanaway truck driver in double fatality had never driven manual before, court hears". ABC. Retrieved 9 May 2021.
  31. ^ Campbell, Claire (19 April 2021). "Cleanaway Operations found guilty of failing to adequately train driver over 2014 freeway crash". ABC. Retrieved 9 May 2021.
  32. ^ "EPA takes legal action against Cleanaway for pollution of river". Mirage News. 4 March 2021. Retrieved 14 May 2021.
  33. ^ Dunckley, Mathew (11 December 2017). "Cleanaway Waste Management to buy rival Tox Free Solutions". The Sydney Morning Herald. Retrieved 19 June 2018.
  34. ^ "Cleanaway's $671m Tox Free takeover a done deal". The West Australian. 3 May 2018. Retrieved 19 June 2018.
  35. ^ "Cleanaway Gains Federal Court Approval For Tox Free Scheme of Arrangement – The Shareholder". The Shareholder. 10 May 2018. Retrieved 19 June 2018.
  36. ^ "Cleanaway acquires SKM facilities for $66 million". Inside Waste. 10 October 2019. Retrieved 19 May 2020.
  37. ^ "Former SKM facilities in Victoria reopened by Cleanaway". Inside Waste. 4 February 2020. Retrieved 19 May 2020.
  38. ^ Jump up to: a b Keys, Holly (10 October 2019). "Cleanaway acquires SKM Recycling for $66 million". Waste Management Review. Retrieved 5 September 2021.
  39. ^ "Welcoming Statewide Recycling to the Cleanaway family in Warrnambool". Cleanaway Newsroom. 13 July 2020. Retrieved 24 July 2020.
  40. ^ Cleanaway collects Suez assets on the cheap Australian Financial Review 14 April 2021
  41. ^ "Turning landfill gas into renewable energy". cleanaway.com.au. Retrieved 19 June 2018.
  42. ^ "Cleanaway launches waste-to-energy plan". Waste Management Review. 4 October 2019. Retrieved 19 May 2020.
  43. ^ "Study shows we think we're wheelie good recyclers, but most of us are rubbish". Mirage News. 19 April 2021. Retrieved 23 April 2021.
  44. ^ "EarthPower food waste to energy plant". Waste Management Review. 11 October 2019. Retrieved 19 May 2020.
  45. ^ "Return and Earn reaches major milestone". Convenience and Impulse (C&I) website. 25 February 2021. Retrieved 26 February 2021.
  46. ^ "Pact plugs into plan for $30m plastic recycling plant in Albury". The Sydney Morning Herald. 19 February 2020. Retrieved 19 May 2020.
  47. ^ "Construction set to begin on $45M Albury recycling plant". Waste Management Review. 4 August 2020. Retrieved 9 October 2020.
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