Recycler SKM says it is back in action and can salvage operation

Troubled recycler SKM says it is is ready to start receiving waste again after doing major maintenance to clean its Coolaroo and Laverton sites and that it is “now ready to go”.

Collapsed recycler SKM says it has cleaned up its Coolaroo and Laverton sites in readiness to start receiving waste.

Operations manager Jeff Bunting told the Sunday Herald Sun the main SKM processing sites had been worked on solidly over the past week with major maintenance performed and were “now ready to go”.

“We are ready to flick the switch once we get the OK,” Mr Bunting said.

“If the financials are put to bed and we can operate again, not a problem, the plant is ready to go. So whether we are taken over or the banks get involved, the plant is ready.

“Once we get the green light from management and the fire brigade that we can start operating, we’ll do it.”

The power was cut off to the Coolaroo site for about two days last week because of unpaid bills, threatening the operation of fire prevention ­systems, but had been restored by Friday night.

A Metropolitan Fire Brigade spokeswoman said the fire authority was working with the City of Hume, the Environment Protection Authority and those responsible for the site “to ensure appropriate fire safety strategies are in place and fire safety systems remain operational to reduce fire risk”.

The SKM recycling plant in Laverton. Picture: David Caird

It was reported late last week that waste management giant Cleanaway was eyeing off the stricken recycling business with a view to taking it over.

It’s understood Cleanaway and its adviser Korda Mentha approached SKM’s biggest lender, Commonwealth Bank, which has an exposure to the collapsed SKM of more than $50 million, with an offer to ­immediately purchase CBA’s ­exposure to the business.

But no plan appears in place for the several warehouses filled with SKM waste in Melbourne’s outer suburbs.

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The owner of a big Brooklyn warehouse — publicly-listed property giant Stockland — told the Sunday Herald Sun on Friday it was preparing to get rid of the mountains of rubbish at the company’s own expense and was exploring ways to dispose of the waste.

A spokeswoman for other warehouse landlords, Carly Whitington, said a resolution was urgently needed, but the state government on Saturday said there were no developments to report.

A major skip hire company has warned of “a massive ­increase in ­illegal dumping”, across Victoria in the near future.

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