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A Polish recycling company says it "tolerated" an Australian business using its name to enter a new international market despite having no formal ties to the entity.
Key points:
- Bioelektra Australia entered into voluntary administration earlier this month
- The company had been contracted by Shoalhaven City Council to help divert most of the city's rubbish from landfill
- It had promised to use technology patented by its Polish namesake, but the Warsaw-based company has denied any formal connection
Bioelektra Group SA, headquartered in Warsaw, has worked to distance itself from Bioelektra Australia this week, a fortnight after the local business announced it had entered voluntary administration.
The Australian company had been contracted by Shoalhaven Council in 2018 to operate the country's first "advanced waste treatment plant" at the West Nowra tip on the New South Wales south coast.
It promised to use its Polish namesake's technology to divert most of the region's red bin rubbish from landfill.
This week, the CEO of Bioelektra Group SA, Jarosław Drozd, told the ABC his company did not have any formal ties with its Australian counterpart and had only engaged in "verbal negotiations".
"There has never been a written contract between Bioelektra Group SA and Bioelektra Australia," Mr Drozd said.
"Due to the size, notoriety and potential benefits stemming from the [Shoalhaven] project's completion, we decided to tolerate the current state of affairs until the contract of sale of our technologies to Bioelektra Australia [were] finalised.
"After Bioelektra Australia's tender success … we demanded [the company] present [its] investors for the project and confirmation of an order for the technology line to be supplied.
"After a couple of years, we have found ourselves in the position where [we have not received] an order for the technology line for West Nowra."
Visit from Poland
Shoalhaven Council said it had spent $2 million clearing land at its West Nowra tip to make way for the technology, which is designed to separate and sort plastic, glass, metals and organics before diverting the material into construction aggregate, bricks and glass wool.
The first sod was turned at the site in March last year after it received development consent from the NSW Department of Planning and was set to become operational this year.
In a statement, Shoalhaven Council said while it had dealt primarily with Bioelektra Australia, it also had discussions with the Polish company in 2018 and again in 2019.
"Two council staff and councillors visited Bioelektra Group in Poland and met with management to understand more about the technology," a spokesperson said.
"Senior management of Bioelektra Poland also visited Council in 2019 … to discuss their vision for Australia and answer questions about their company."
Council said it understood the equipment for the facility was being built in Europe and believed it was on track to be delivered to the West Nowra tip.
"Information that processing equipment has not been ordered is contrary to advice council has been provided by Bioelektra Australia to date," the spokesperson said.
"We have continued to seek confirmation of the status of the plant and have been provided assurance that it was on track."
The council also confirmed the NSW Local Government Minister Ron Hoenig had requested information from the organisation in relation to its contract with Bioelektra Australia.
'We are hopeful'
Mr Drozd said he hoped his company's technology could be used in Australia in the future.
"The Shoalhaven project is very important to us as it could pave the way to the vast Australian market," he said.
"We are hopeful that the project will be continued with the support of a reputable investor."
Shoalhaven Council said a decision about its contract with Bioelektra Australia would not be made until it received further information about the company's administration.
"Council will await the conclusion of that process and determine its position," the spokesperson said.
Bioelektra Australia said it was not in a position to comment as the company was currently under voluntary administration.
The administrator, Trent Divine of Jirsch Sutherland, has been contacted by the ABC.