BORDEAUX, France, March 4, 2013 /PRNewswire/ --
Since its construction was completed last summer, the CHO
Morcenx plant has produced 2235MWh delivered and sold to the grid
and has proven its overall efficiency thanks to the wood dryer
equipment connected. Nevertheless the plant has not yet been
commissioned because the duration of performance tests is not yet
satisfactory. The main issue arises from one single piece of
equipment (not built by Europlasma) not able to date to deliver its
performance on a steady basis. The plant has demonstrated its
capacity to reach the floor power of 6MW on a given period that CHO
Power and their partners aim to increase.
Separately, a technical failure (some equipment has frozen)
occurred mid-February when temperatures dropped drastically. The
plant is stopped for estimably 3 months to dismantle and to repair
the damaged equipment.
The Board, the management and the main customer, the CHO Morcenx
company, are meeting regularly to consider the outcome of this
postponement and find remedial actions regarding contractual terms
as well as the cash position that has declined.
The CHO Morcenx delayed Take Over Date and the low production
registered at INERTAM (due to technical issues on the fine tune up
of the front end load preparation of asbestos wastes) have
significantly impacted the financial year 2012 at Group level, when
Europe Environment recovers in line with expectations. CHO Power
incurred numerous non-recurring start-up costs in addition to
standard operation costs. In addition, the company supported
contractual costs linked to the postponed take-over date. In
return, low revenues were generated from the operations given the
poor production level achieved in the year.
"The Europlasma Group is positioned on the completion of key
industrial challenges in the sector of Clean Energy with a
relatively light structure associated with projects financing
arrangements where timing is key given risks taken by
investors", explains Didier PINEAU, MD. "Each day without
production at a factory greatly affects the cash and the
accounts' balance. After having invested (or
secured investment ) more than €M50 in 2012 (CHO Morcenx, Inertam
and Kiwi), management is still strongly convinced of the pertinence
of choices made and coherence of the industrial project, but
apologises that they have not been able to deliver expected
performances within the contractual timeline".
About Europlasma
Europlasma is a French Group operating in the clean technologies
and renewable energy production industries. Founded in 1992 to
apply its proprietary plasma torch technology to hazardous waste
destruction, it is now built on the following four business
units:
- Europlasmaisa world-wide supplier of plasma heating
systems and related applications
- Inertamis the global specialist in the destruction and
recycling of asbestos and hazardous waste
- Europe Environnementis the
European expert in industrial ventilation and gas cleaning
systems.
- CHO Power is a producer of electricity from waste and
biomass gasification.
http://www.europlasma.com [Alternext - NYSE Euronext Paris
- Mnemo : ALEUP - Isin : FR0000044810]
Press and investor contacts
Didier PINEAU, Chief Executive Officer / Anne
BORDERES in charge of Shareholders Relations
Estelle MOTHAY, Chief Financial Officer
Tel: +33-556-747-372 - contactbourse@europlasma.com