Waste Management Ltd applied for resource consent to operate a new hazardous waste treatment and stabilisation plant at its site on Marshs Rd.
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In a statement, the company said it had decided not to proceed with the proposal.
"With the ongoing impact of Covid-19, the company has reviewed the market demand for the additional industrial waste treatment capacity that the new facility would provide.
"Waste Management now considers it will be able to comfortably meet the needs of commercial and industrial customers in the region through its existing facility at Francella Street, Bromley."
It comes after an application from Waste Management to bypass the hearing process and have the matter dealt with by the Environment Court.
The planned expansion has been controversial in the community with Prebbleton and Hornby residents fighting to stop it.
Residents felt the decision to only publicly notify those living within 500m of the site about the planned plant expansion was wrong.
