Stockholm - Scandinavian Enviro Systems is setting up a holding company in the US to facilitate the establishment of its co-owned recycling plants in the region.
The move is part of the 'co-ownership' strategy of the Swedish tire pyrolysis company, which is currently pursuing joint venture projects in the US, with Treadcraft Ltd and EE-TDF Cleveland LLC.
“Our new strategy means that Enviro wants to become part-owner of plants based on our technology as it provides good revenue opportunities,” explained Thomas Sörensson, CEO Enviro, 2 Sept.
However, according to the CEO, becoming a partner will require structural changes within company and the US entity – being established with immediate effect – will address those issues.
In August, Enviro signed a term sheet agreement with TreadCraft regarding the establishment of a tire pyrolysis plant in Buffalo, New York.
At the same time, the company said, work is also underway to obtain supplementary agreements for the terms of the joint venture and license agreements.
“The decision to establish a holding company in the US is part of the process to create the right conditions for final agreements and financing of the facility,” the Sörensson noted.
Gothenburg, Sweden-based Enviro currently recycles 6,000 tonnes of scrap tires every year at its plant in Asensbruk, Sweden.
Using its proprietary technology, Enviro recovers oil, steel and carbon black from end-of-life tires.
The recovered carbon black produced by Enviro is used to make rubber components for the automotive and other industries.
Clients for those parts include Volvo Cars and Trelleborg Wheel Systems, according to Enviro.