SUEZ secures £1 billion contract extension with Greater Manchester
Formal agreement of eight-year deal means company will continue managing waste and recycling for one million households until 2034.
SUEZ recycling and recovery UK has secured an eight-year extension to its waste management contract with the Greater Manchester Combined Authority (GMCA), valued at over £1 billion. The extension, which will see SUEZ continue to provide services until 2034, builds upon the initial seven-year contract signed in 2019.
The renewed partnership will oversee the management of 1.03 million tonnes of waste generated annually by more than one million households across nine Greater Manchester boroughs. This extension solidifies SUEZ's position as a leading provider of complex, integrated waste management contracts in the UK.
GMCA's decision to extend the contract followed consideration of several options, including seeking a new contractor or moving operations in-house. The potential disruption to service quality and the limited number of waste operators capable of managing Greater Manchester's waste volume were previously cited as key factors in favouring the extension.
The partnership has improved recycling rates across GMCA's 20 household waste recycling centres (HWRCs) from 35 per cent to 58 per cent since the initial contract began.
John Scanlon, Chief Executive Officer for SUEZ recycling and recovery UK, commented: "I'm proud of the innovations we have delivered to reuse and recycle more of Greater Manchester's waste in our first five years of partnership with GMCA. The extension to our contracts is testament to the collaborative approach that defines our relationship and I'm delighted GMCA has chosen to continue to partner with SUEZ to navigate the coming years of change and transition as we work together to create a more resource-efficient circular economy."
Increased social value
The partnership includes development of the Renew Hub, established in 2021 as the UK's largest reuse operation. This 5000m² facility, along with three Renew shops, has to-date diverted over 260,000 individual items to reuse, raising more than £1 million for local causes.
Caroline Simpson, Group Chief Executive to GMCA, GMFRS and TFGM, added: "I am delighted that the GMCA contracts for waste management with SUEZ have been extended. Under our unique devolution deal, we are making sure that these contracts push the boundaries on delivery of social value for the city region through public sector procurement, developing a model that is seen as best practice nationally. Our partnership with SUEZ has seen a significant improvement in performance with landfill diversion exceeding 99.8 per cent and HWRC recycling approaching 60 per cent."
The extended contract will see further investments in infrastructure and service improvements. Residents will soon be able to recycle additional materials, such as pots, tubs, and trays, in their household collections. SUEZ will also invest in upgrading the energy-from-waste facility at Raikes Lane in Bolton to improve performance and efficiency.
Announcing formal agreement of the partnership, Suez emphasised the increase in social value, outlining 54 commitments including the creation of over 92 apprenticeships over ten years, work placements for young people, and support for schools and universities with career events. To date, 38 apprenticeships have been created in roles such as recycling operatives, welders, electricians, and furniture restorers at the Renew Hub.
This contract extension aligns with SUEZ's global growth strategy. The company aims to increase its UK revenue from €1 billion in 2023 to €1.5 billion by 2030 through organic growth and strategic acquisitions.
