October 1, 2003 — For Immediate Release

Minneapolis, MN & San Diego, CA — Environmental Information, the leading research firm on the hazardous waste and wastewater marketplace, reports the continued closure of incineration capacity is improving the long-term fundamentals of this commercial sector. The sector has experienced the closure of 13 of the 27 commercial incinerators operating in 1996.

"The situation could improve even further if the former LWD incinerator in Calvert City, Kentucky closes permanently," states EI Research Analyst John McMurray. "Most in the industry expect this to happen in the next year," adds McMurray. Only about 25% of LWD’s annual incineration capacity of 80,000 tons had been utilized in recent years, according to information compiled from various sources. This was the lowest utilization rate of any incinerator in the United States.

Volumes are down from historically high years in 1999 and 2000. The commercial incinerators, like other segments of the hazardous waste marketplace, are negatively impacted by lower waste generation from the manufacturing sector and postponement of remediation cleanups due to the recession. This situation is expected to improve as the economy rebounds.

"There is now a healthy balance between commercial incineration demand and supply," states EI’s Senior Analyst Cary Perket. "However, the key issue for this sector is the customer’s expectation of pricing that does not yield a reasonable operating income. Many businesses in this sector do not generate the same operating income as their counterparts that haul and dispose municipal solid waste."

This report appeared in the EI Digest: Hazardous Waste Marketplace, a business research report that covers hazardous waste management issues. Further information of the EI Digest can be found on the web (www.envirobiz.com), one of the Internet’s leading sites for environmental business research. Based in Minneapolis, Minnesota, Environmental Information, Ltd. (EI) specializes in research on the environmental services and technology marketplace. For further information on the EI Digest, contact customer service at 952/831-2473.

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