Market & SWOT

Van Gansewinkel Groep is both a waste service provider and a supplier of raw materials and energy, and is active in the whole of the waste chain. The company collects all types of waste and treats and processes waste to produce raw materials and sustainable energy. With turnover in excess of €1.1 billion, Van Gansewinkel Groep is the market leader in the Benelux and among the ten leading operators in Europe.

Market position

Collection & Services:

Market leader in the Benelux, minor market positions in France, the Czech Republic and Poland.

Recycling:

Market leader in the Benelux, Top 3 position in Europe.

Energy from Waste:

Market leader in the Netherlands.

The existing portfolio and the existing geographic spread offer an ideal platform for growth, which will be realised both organically and through acquisitions. Van Gansewinkel Groep intends to expand its waste service activities and its recycling activities. The focus in the consolidating waste incineration market is on generating the highest possible energy yield (also see Energy from Waste).

Market developments in 2010

• Slight economic recovery
• Decrease in the volume of waste in the Benelux
• Overcapacity and price pressure in the Energy from Waste market (waste incineration)
• Downward effect on prices in the collection market as a result of the price pressure in Energy from Waste
• Increase in the demand for sustainable solutions for waste issues
• Sharp recovery of the prices for raw materials (see Recycling Coolrec, Maltha and A&G)
• Growing awareness of the scarcity of raw materials (see Raw materials scarcity as a business case)

SWOT

Strengths

• Operations in the whole of the waste chain (collection, recycling, Energy from Waste)
• Customer focus resulting from decentralised organisation; high scores for customer satisfaction
• Diverse customer base; active in all industries
• Cash-generating potential
• Understanding of raw materials and logistics systems
• Favourable geographic situation of waste-to-energy plants
• Strategic alliances with customers and suppliers
• Dedicated and skilled employees, high level of employee satisfaction
• High standards in terms of safety and compliance; complete ISO certification
• Waste incineration capacity in line with present and future demand from the market
• Agreements for district heating

Weaknesses

• Small position outside the Benelux
• Limited share of Recycling within Van Gansewinkel Groep’s total turnover
• Highly differentiated ICT landscape
• As yet limited use of group-wide services
• Ratio between equity and borrowed capital (high leverage)
• Long through-time from product development to market introduction

Opportunities

• Scarcity of raw materials and exhaustion of fossil fuels
• Prices for CO₂ emissions
• Approaching end of competitors’ processing contracts
• Increasing importance of sustainable energy
• Increasing focus on sustainability and Cradle to Cradle
• Possibilities for importing waste thanks to the R1 status of the Rozenburg waste-to-energy plant
• Opportunities for growth, both organic and through acquisitions
• Growth of the waste market in Poland and the Czech Republic
• Increase in industrial production
• Strong market position
• Financially solid shareholders
• Group-wide operational improvement programmes

Threats

• Volatility of prices for raw materials
• Recession or insufficient economic recovery
• Price movements in the collection market
• Uncertainty about the stability of the financial system
• Rising interest rates
• Insufficiently level playing field in Collection and Energy from Waste
• Budget deficits in Western Europe

Points of action

• Further solidify our position in the Benelux collection and recycling market
• Create a second home market in Central and Eastern Europe
• Grow in recycling, including beyond current geographic area
• Carry through structural efficiency improvements throughout the organisation
• Reinforce innovation & business development
• Improve energy yields and increase the stability of the waste-to-energy plants
• Increase the expertise of staff by providing training and taking on new employees
• Prepare for new ownership structure