One of the subcontractors of the waste management concession is a subsidiary of the ALTEO Group

FE-GROUP INVEST Zrt., a subsidiary of ALTEO Nyrt, has signed a two-year service contract, renewable for another two years, with MOHU MOL Hullgazdálkodási Zrt., the winner of a 35-year waste concession in Hungary, for the collection, transport, storage and pre-treatment of waste. The company, which is listed in the premium category of the Budapest Stock Exchange (BSE), is thus taking a major step towards modern waste management based on recycling, which is also a key element in the transition to a circular economy.

FE-GROUP INVEST Zrt., a company with significant recycling capacities and decades of experience in the field, has applied for the position of institutional subcontractor for the waste management concession, together with several subcontractors and cooperation partners. The company is 75.1 percent owned by ALTEO Nyrt, which launched its waste management business in 2018 with the acquisition of ECO-FIRST Ltd. based on biodegradable waste. This business became significantly more integrated less than a year ago with the acquisition of a controlling stake in FE-GROUP INVEST Zrt, which is also 24.9 percent owned by the Blue Planet Climate Protection Venture Capital Fund, which invests in technologies and solutions that promote climate protection and environmental sustainability.

Developing our existing capacities, integrating state-of-the-art technological innovations into practice, striving to recycle waste beyond existing material streams with 21st century solutions and value-creating investments“, said Anita Simon, Deputy CEO of ALTEO responsible for sustainability and circular economy, explaining FE-GROUP INVEST Zrt.’s participation in the 35-year concession.

According to Anita Simon, the pursuit of waste recycling is one of the most important goals of modern waste management, and it is not by chance that this approach is supported by EU and national regulatory efforts. They are in full agreement with MOHU MOL Hulladékgazdálkodási Zrt.’s objective to reduce the proportion of waste going to landfill in Hungary – the proportion of collected waste that ends up in landfills – to 10 percent. This will require restructuring and renewal of the entire domestic system, as well as the development of additional recovery capacity and efficient and innovative solutions.

All this can contribute to a more stable and predictable waste management market as a whole. “We believe that FE-GROUP has a significant added value in building and making the concession system operational, and accordingly the contract signed today will increase the size, capacity and revenue of the waste management business,” added Anita Simon, referring in particular to the waste streams of FE-GROUP INVEST Zrt. that are of particular interest from an energy perspective.

Through the acquisition of FE-GROUP INVEST Zrt., the ALTEO Group is already an unrivalled player in the waste management market. The group is able to treat a quarter of the PET waste generated in Hungary annually, i.e. 6,000 tonnes, while its share in the combined electronics segment (annual figure) is around 10 percent, estimated at around 90,000 tonnes. The ALTEO Group’s strategy up to 2026 focuses on waste management, with a stronger focus on recycling as a key pillar of the transition to a circular economy.