Recent Industry Performance

IBISWorld estimates that this industry has grown at an average annual rate of 4.4% over the five years to 2007-08.
More municipal, commercial and industrial waste is being produced and there has been growth in the treatment and processing of waste due to the diversion of waste from disposal in landfill, and growth in the range of collection services required due to increased recycling.

The economies of scale and scope available in the delivery of waste treatment and processing services have encouraged consolidation in this industry over the past five years.

Queensland-based market leader Transpacific Industries Group, which listed on the ASX in 2005, has earned its dominance through a succession of acquisitions. In May 2007, Transpacific acquired Cleanaway, the largest waste management provider in Australia for $1.25 billion from Kohlberg Kravis & Co.
In April 2007, Transpacific acquired Twigg, which includes operations that collect landfill gas to create electricity, for $155.8 million. These acquisitions follow the purchase of Baxter Group, Waste Management NZ, Australian Pollution Engineering and many smaller waste collection businesses in 2006.

In 2006-07, TPI had revenue of $1295 million, up 99% on the previous financial year. EBITDA was $302.8 million, up 183% of the previous year.

Veolia Environmental Services Australia, a subsidiary of French Group Veolia Environment, provides waste management services to 3.4 million people, and 52,500 commercial and industrial clients. It has 2895 employees and in 2006 had revenue of over $650 million.
SITA Environmental Solutions sales revenue for the year ended December 2006, was $303.5 million, up 7.3% on the previous year. Over this year, the company experienced strong growth in their profit, with profit before tax up over 65% to $28 million.

In 2006-07, the company had revenue of $367.3 million, a 23.5% increase on the previous year. NPAT increased by around 61%.
The movement towards large scale material recovery facilities has also encouraged the trend over the current period for local governments to consolidate in planning and purchasing such services.