Sources inform ''Globes'' that the foreign company which Shrem Fudim Group Ltd. (TASE: SFG) said would invest $23.75 million in Environmental Energy Resources Ltd. (EER) for 10% of the company will increase the investment for the stake to $30 million. Shrem Fudim owns 3.5% of EER, which is a plasma based thermal treatment for environmentally friendly disposal of waste materials.
The sources added that the group of Russian oligarchs and Israelis plan to increase the investment because of a large contract that EER is negotiating with the Texas Medical Center in Houston for the construction of a medical waste treatment facility. Texas Medical Center incorporates 15 hospitals across the state.
New US federal regulations led to the closure of incinerators for medical waste, and hospitals are seeking alternative waste disposal methods. Currently hospitals must transport their waste to landfills, which create environmental damage, even when they are located far from any settlement, and involve heavy financial costs.
Texas Medical Center is evaluating EER's technology, and the company is now in the process of licensing it with the Texas state health authorities. The company's representative in Texas expects to complete the licensing process in a couple of months. He signed a contract to represent EER vis-a-vis Texas Medical Center after making a number of visits to EER's facility at I'billin, near Shfaraam in the lower Galilee.
Published by Globes [online], Israel business news - www.globes-online.com - on August 3, 2008
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