SECOS Group Ltd - SECOS Wins City of Melville Compostable Bags Contract valued at more than $600,000

What happened?

What's happened?

SECOS Group Limited (“SECOS”, "ASX:SES") has advised that it has won a significant sales agreement to supply compostable bags to City Councils.

What are the key highlights?

The contract with the City of Melville is to supply over 42,000 homes with compostable kitchen tidy bags to facilitate food waste diversion from landfills. This is part of the Australian Councils’ Food Organics and Garden Organics (“FOGO”) program. SECOS continues to see Biopolymer Bag sales growth resulting from the roll out of city council FOGO initiatives.
The take up by councils and households in the use of SECOS’ compostable bag range provides strong evidence of the quality, price and performance of the Company’s product’s in this category.
The FOGO contract with Penrith City Council is the largest active waste diversion program amongst Australian city councils and SECOS has been supplying Penrith City Council for some time already. Penrith’s FOGO program has achieved over $10 million in savings for rate payers over ten years attributed to FOGO.
In total, SECOS supplies over 30 city councils in Australia.

For more details, please refer to the announcement linked below.

CEO's summary

Ian Stacey CEO of SECOS Group Ltd has provided a statement.

Ian Stacey

CEO, SECOS Group Ltd

"We are seeing more Councils rolling out additional bin services to collect glass and organics in response to the ongoing recycle crisis. At the same time Councils are taking the opportunity to adopt FOGO schemes which utilize the purchase and roll out of Compostable bags to capture and divert food waste to organic or green bin waste streams. Diverting organic waste away from landfill reduces Council land-fill fees and significantly cuts the release of methane gas produced when food is left to decompose in landfill instead of being diverted to mulch. Research indicates methane is 23 times more harmful than carbon dioxide as a greenhouse gas. The significant cost savings to Councils together with the reduction in greenhouse gases offers a compelling case to support the introduction of compostable bags and the diversion of organic waste from landfill."