Compost firm leads UK charge

British officials say investment in Britain by Kiwi companies is up, with Canterbury companies like HotRot Organic Solutions helping lead the charge.

In 2009-10, New Zealand has been among the top 20 investors into Britain, ranking 16th, up from 19th in the 2008-09 year.

A total of 24 New Zealand companies have set up in Britain in the last year within a climate of lower investment, the British High Commission says.

The total number of investment projects into Britain in 2009-10 dropped by 7 per cent, lower than the 10 per cent fall into Europe

British High Commissioner to New Zealand Vicki Treadell said the result clearly demonstrated the high level of interest New Zealand companies had in the British market helped by the continued strength of the New Zealand dollar.

HotRot Organic marketing manager Peter Robinson said a subsidiary had been operating in Britain since late 2004 with varying success on the HotRot composting chamber system. The subsidiary was also working with German company Bekon on an anaerobic (non-oxygenated) system.

A recent 5.4 million (NZ$11.45m) sale of its system to MTS Cleansing Services, a waste disposal group based in Rochester near London, had bolstered the HotRot group, with the project to take 18 months.

The project would involve the installation of six of HotRot's larger waste processing systems to deal with London sewage.

HotRot would build the first British-based sewage grit and screenings composting plant with a 26,000 tonne capacity.

HotRot expected to be profitable in the year to March 31, 2011, with revenues of nearly $6m, and with inquiries from prospective customers on the rise as landfill costs increased.

Its systems typically bulk processed waste into a compost that could be applied for agricultural use.

Base units were sold for between $130,000 to $600,000 but ancillary equipment such as hoppers and conveyors were also needed by clients.

One of HotRot's larger shareholders – Mace Group with about 48 per cent of the company – engineered the large chambers for export. Other shareholders included members of HotRot's management team.

The company's structure, shareholder base and need for extra capital would probably be examined in the period ahead, Robinson said. "There are some opportunities that, if they develop, will make us more attractive to investors."

The New Zealand company had also made recent sales to a brewery in California, and to an Indonesian customer.

The Middle East, Asia and Europe were other target markets.

East of England Invest business consultant Therese Banks, representing counties like Hertfordshire, Cambridgeshire, Essex, Norfolk and Suffolk, said Christchurch firms had been making good progress in Britain.

Companies interested or already in that market included Enasolar, Designline International Holdings, and Windflow Technology.

Canterbury companies often had environmental technology expertise that was in demand in Britain.

"I want to help them understand Government regulations, and introduce companies to partners so they can become established. Sometimes they don't establish straight up, they may go through distributors or partners."

- © Fairfax NZ News