AGR is reshaping its thermal waste treatment strategy. Find out what drives this decision and how it will impact hazardous waste management and employees in the coming years.
Key Takeaways
- AGR will stop thermal treatment of hazardous waste at RZR Herten plant by 31 December 2028, following a decision by the supervisory board.
- The company originally planned a costly modernisation, but changed economic conditions rendered this investment unfeasible.
- High costs in plant engineering and a decline in hazardous waste volumes contributed to this decision, with inflation also impacting operating costs.
- AGR will focus on other business segments, continuing development in municipal waste incineration and landfill management.
- Management aims for a socially responsible closure, negotiating with employee representatives to support affected workers and avoid compulsory redundancies.
On 27 June 2025, the supervisory board of German plant operator AGR unanimously decided to discontinue the thermal treatment of hazardous waste at the waste to energy plant RZR Herten. This resolution follows the recommendation of the AGR management board and affects both hazardous waste incineration lines and the interim hazardous waste storage. Operations at these facilities will cease by 31 December 2028. The workforce received information about this decision during a company meeting held on 1 July 2025, attended by both management and employee representatives.
Originally, AGR planned a comprehensive modernisation of the hazardous waste incineration plant to meet future regulatory requirements. This would have required an investment in the triple-digit million-euro range. However, the economic conditions for such an investment have fundamentally changed. The company now considers the investment economically unfeasible.
The main factors contributing to this outlook include disproportionately high planning and construction costs in plant engineering. Persistent structural changes in the chemical industry, which is a key client for hazardous waste incineration, have led to a decline in waste volumes and a reduction in high-calorific waste streams. In addition, operating costs for flue gas cleaning have risen significantly due to inflation. A new hazardous waste incineration plant, set to open in Marl next year by Veolia subsidiary Sarpi, will maintain regional disposal security for hazardous waste, AGR announced in its statement.
Future Direction and Investment Strategy
Over the next three years, AGR will focus on setting the course for its future business activities. Managing Director Stephan Kaiser emphasised that AGR will remain a reliable partner in hazardous waste incineration until the end of 2028. The company aims to continue operating the hazardous waste incineration lines in an orderly and planned manner, implementing necessary maintenance measures until closure.
Other business segments of AGR are not affected by this decision and will continue to be developed. AGR plans to invest significantly in its existing municipal and commercial waste incineration operations as well as landfill management. Projects involving the development of new landfills on former spoil heaps and the ash processing facility will also proceed as planned.
Roland Mitschke, Chairman of the Supervisory Board, highlighted the company’s robust financial position. In the previous financial year, AGR achieved a net profit of around 26 million euros, which contributed to an increase in the equity ratio to well above 30 percent. Mitschke stated that AGR made this strategic decision from a position of economic stability and strength.
Social Considerations and Employee Involvement
Despite the group’s overall positive financial performance, Managing Director Marc Bunse stated that there is no economically viable alternative to closing the hazardous waste incineration operation under current conditions. He stressed that the company’s focus now shifts to implementing the closure in a socially responsible manner. AGR management will soon enter negotiations with employee representatives to discuss a reconciliation of interests and a social plan. The objective is to use all available resources to find fair solutions for the approximately 100 affected employees.
Employee representatives unanimously supported the closure, provided that their demands for a socially responsible transition are met. Peter Kadzimirsz, Chairman of the Works Council at AGR Betriebsführung GmbH, emphasised the need for binding measures to cushion the impact of job losses. These measures include offering alternative positions within the AGR Group, with qualification opportunities if necessary, with the aim of avoiding compulsory redundancies.
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