Covanta Energy Corporation, which runs a waste-to-energy plant here, will sell a 1.1 acre parcel it owns on Cherry Street to BYK USA Inc., which will use the land in its $47 million plant expansion.
The land sale, Covanta said in a news release today, is part of a long-term partnership between the two companies that “helps pave the way for the expansion of BYK’s operation in Wallingford that will increase its manufacturing capacity by 300 (percent) and result in the addition of 37 new, full-time positions.
BYK, which produces paint and plastics additives, among other products, announced its expansion plan this week and will construct its new building on the parcel it is buying from Covanta.
“Covanta and BYK should be commended for their diligence in approving an agreement that is good for the community, good for our local economy and good for their respective businesses,” Wallingford Mayor William Dickinson said. “BYK’s expansion plans will bring much needed investment and new jobs to our community.”
“Covanta is pleased to support BYK and their expansion plans with this agreement,” said Seth Myones, Covanta’s chief operating officer. “Our Energy-from-Waste facilities around the country serve a number of neighboring industries with waste disposal, energy and steam and we look forward to continuing to do so in Wallingford.”
“We are extremely excited to partner with BYK and look forward to building upon our relationship going forward,” said Steve Diaz, Covanta’s vice president and regional business manager. “This agreement is just the beginning of what I anticipate to be a mutually beneficial relationship that will continue to provide important economic benefits for Wallingford.”
In addition to waste disposal services, future arrangements between the two companies include the potential for Covanta to supply steam to BYK for their manufacturing needs. Steam is generated at the Covanta facility by combusting municipal solid waste.
“We look forward to working with Covanta in the future as BYK continues to expand our business,” said BYK Chief Financial Officer Nick Caputi. “It helps to know that we have a reliable partner and neighbor to support our growth plans.”
The Covanta Wallingford Energy-from-Waste facility processes 420 tons of solid waste per day into approximately 11 megawatts of clean, renewable energy – enough power for 10,000 area homes. The facility serves the sustainable waste disposal needs of about 200,000 area residents.