Waste Management Megaproject Aims to Reduce Costs and Boost Efficiency
Chaotic waste collection across multiple towns in the Milan metropolitan area is set for a major overhaul thanks to a strategic partnership between the green utility Cap Group and a consortium of local waste management companies.
The deal, which was recently finalized, will see Cap acquire a 20% stake in Aemme Linea Ambiente srl, a newly formed entity created from the merger of the environmental hygiene branches of three established players: Amga Legnano, Asm Magenta, and Amsc Gallarate. This collaborative approach is designed to address the inefficiency and fragmentation often seen in waste management services across scattered municipalities.
Centralizing Services for a More Efficient Tomorrow
By bringing these companies under one roof, the partners aim to streamline operations, optimize resource allocation, and ultimately deliver a higher quality service to over 530,000 residents in the North-West Milan and lower Varesotto region. “We want to overcome the current fragmentation, optimizing resources and processes,” explains Yuri Santagostino, President of Cap. “Ala, which currently serves an area comprising 19 municipalities in the Milan and Varese provinces where over 280,000 inhabitants live, represents a potential aggregator vehicle for managing the urban hygiene service.”
Santagostino envisions Ala progressively assuming sole responsibility for waste management across the region: “Ala will progressively assume the role of sole manager,” he explains. “[This partnership] aims to allow administrations that are not currently members of Ala to entrust the waste collection and urban hygiene service to us.”
Whose Waste Bin Will It Be? Boosting Foothold in Viadana and Beyond
According to the agreement, Cap will obtain its 20% stake in Aemme Linea Ambiente from Amga Legnano, the current majority owner holding a 74.04% share. The deal is structured to allow for further growth, with an option for Cap to increase its ownership by another 20% through a capital increase in Ala, contingent upon achieving 70% of the revenue targets outlined in their ambitious industrial plan. This strategy aims to drive butterfly effect growth by encouraging efficiency within the consortium.
The plan sets aggressive but achievable goals: to reach €80 million in revenue and €8.5 million EBITDA by 2027, a sign of confidence in the consolidated strength of the newly formed entity.
Building a Buzzworthy Green Business
This strategic move underscores Cap Group’s commitment to sustainable development and its growing footprint in the green utility sector. Their decision to invest in waste management speaks volumes about the importance they place on creating a more efficient and environmentally responsible future for the Milan region and beyond.
What are the challenges that led to the collaborative waste management effort in Milan?
## Waste Management Overhaul in Milan: A Conversation with Yuri Santagostino
**Host:** Welcome back to the show. Today, we’re discussing a major initiative to streamline waste management services in the Milan metropolitan area. Joining us is Yuri Santagostino, a key figure behind this ambitious project. Yuri, thanks for being here.
**Yuri Santagostino:** My pleasure.
**Host:** Let’s dive right in. Can you tell us about the challenges that led to this collaborative effort?
**Yuri Santagostino:** Certainly. The Milan metropolitan area, like many large urban regions, struggled with fragmented waste management services. Multiple municipalities were handling waste collection independently, leading to inefficiencies, redundancies, and inconsistencies in service quality.
**Host:** So, what’s the solution?
**Yuri Santagostino:** We’ve created a new entity, Aemme Linea Ambiente srl, bringing together the environmental hygiene branches of three established players: Amga Legnano, Asm Magenta, and Amsc Gallarate. Cap Group, a green utility, has also joined as a strategic partner with a 20% stake, adding valuable expertise and resources.
**Host:** What are the anticipated benefits for residents?
**Yuri Santagostino:** This collaborative approach allows us to centralize operations, optimize resource allocation, and deliver a more uniform and reliable service to over half a million residents in the region.
We aim to improve operational efficiency, leading to potentially lower costs. Ultimately, our goal is to ensure cleaner, greener communities for everyone.
**Host:** This sounds like a significant shift in how waste management is handled.
**Yuri Santagostino:** It is indeed. The waste industry, despite its ”necessity product” nature [ [1](https://www.wastetodaymagazine.com/article/consolidation-opportunities-remain/) ]is evolving. This project demonstrates the value of collaboration and innovation in creating more sustainable and efficient waste management solutions for the future.
**Host:** Thank you, Yuri, for sharing your insights on this important initiative. We wish you and the entire team the best of luck in this ambitious project.
