Environmental Elements sells N.Y. water plant

November 30, 1994|By Kim Clark | Kim Clark,Sun Staff Writer

Environmental Elements Corp. has sold its waste-water treatment facility in East Aurora, N.Y., to that community's village government for $3.3 million in cash, the company reported yesterday.

As a result of the sale, the Baltimore-based maker of air pollution scrubbing devices said it will report a gain of more than $2 million from its discontinued operations in its third quarter, which ends Dec. 31.

The company, which built the sewage treatment plant in 1988, will continue to operate the facility until the local government assumes that responsibility early next year.

Company spokesman John S. Lalley Jr. said Environmental Elements has been trying to sell the plant for several years because, although it has been profitable, the operation was unrelated to the firm's core business.

The cash will be spent beefing up the company's main air pollution control business, which has been suffering from a downturn in equipment orders from electric utilities, Mr. Lalley said.

Environmental Elements lost $1.9 million on sales of $31.7 million in its first fiscal half, ending Sept. 30.

But the company has cut its staff from about 340 employees last year to about 250 today, and has seen a rebound in orders for air pollution devices from manufacturers and operators of large trash incinerators.

"We are certainly hopeful we will be profitable by the end of this year," Mr. Lalley said.

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