October 10, 2005

EMS affiliate begins treating, composting Toronto organic wastes from Green Bin program

BURLINGTON, ONT-GSI Environnement, a wholly-owned subsidiary of Environmental Management Solutions (EMS) has begun treating and disposing of source-separated organic waste (SSO) for the city of Toronto under an interim purchase order. The interim deal is expected to lead to a three-year contract between EMS and the municipality. The composting business from the city will add approximately $8 million to the EMS's revenue beginning this fall. GSI Environnement is currently treating and composting the SSO, which is residential organic waste, as part of Toronto's Green Bin program to reduce the amount of waste sent to landfill. This is the second recent significant municipal relationship in Ontario for EMS, which signed a five-year contract in July with the city of Ottawa for the treatment of bio-solids. In other activities, EMS reports that it has cancelled the sale of its 71% indirect interest in Les Composts du Québec. GSI Environnement had received letters of intent for the sale, but EMS said the two final bids were subsequently reduced to terms that would not have provided sufficient value for its shareholders. EMS president and CEO Tony Busseri said the company still aims to sell off the retail and bagging components of Les Composts du Québec's business, which are non-core activities for EMS. "We will maintain our Quebec-based composting facilities in Quebec City, St-Henri de Lèvis, St-Fabien and L'Ange Gardien which could prove to be useful assets in growing our waste management and site reclamation business for the longer term," he said.

Table of Contents  | Top of Page

  Ecolog Network