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Environmental Liability Transfer for a former Kodak site in the UK

Project Summary:

When the purchase of plant and equipment brings with it the obligations of environmental legacies in the ground, a transaction can become complicated. We utilised our experts in the fields of environmental liability and designed a solution for all stakeholders of the former Kodak production facility in the UK. The obligation to address the environmental liabilities and remediation of the site was placed contractually into a specifically designed and focused company.

So, what made it groundbreaking? It is the first deal of its kind in the UK. We utilised our experts in the US, who have been doing this for years. And we are the only consultancy in Europe to offer this product.

The Client’s Challenge:

This transaction involved the sale of a 500,000 square foot former Kodak imaging chemicals production facility in Northwest England (Kirby).

A global manufacturer of photochemical, film and photographic equipment had closed a photochemical plant and was in the process of decommissioning equipment. A US-based industrial process equipment & plant redeveloper was interested in the plant and equipment, but not the associated environmental legacy that resulted from more than 50 years of chemical production.

Our client’s challenge was to ensure that a sale progressed, despite the added complications the environmental liabilities posed.

Our Work:

Using our proprietary Active Transfer program, WSP Environment & Energy contractually assumed the obligation for cleaning up the site, including any cost overruns, to fulfil environmental obligations.

WSP Environment & Energy is delivering a complete remediation and risk management package. From the time the transaction closed, WSP has been on-site completing the required investigations and remediating the environmentally impaired portions of the site clearing the way for redevelopment and job creation.

The scale of the project is such that our activities will not be completed for several years, yet we have already coordinated activities with the Environment Agency, owner and tenants to clear portions of the site for reuse. Five tenants are already operating at the property.

The Outcome:

WSP Environment & Energy brought remediation expertise and innovative Active Transfer solution to bear on this transaction. The ability to manage the technical scope, cost and other potential environmental liabilities allowed the real estate transaction to occur.