Enviro pursues joint venture businesses in US

Gothenburg, Sweden – Scandinavian Enviro Systems AB (Enviro) has advanced its tire recycling ambitions in the US, with plans to set up at least two joint venture businesses in the country.

The Swedish recovered carbon black (rCB) producer announced 12 Dec that it had signed a memorandum of understanding (MoU) with EE-TDF Cleveland LLC to build a 30-kilotonnes-per-annum (ktpa) tire pyrolysis JV to produce rCB from end-of-life tires.

The plant will be located at the US tire waste management company’s site in Texas, with future facilities envisaged for Louisiana and Oklahoma.

The MoU will be in place for six months with an option to be extended.

“Our ambition is to sign a binding agreement over the next three months and then commence our first plant project in second quarter 2019,” said Thomas Sörensson, CEO of Enviro.

“In the future, Enviro will be prioritising plants with full or joint ownership,” commented Sörensson, setting out a new business strategy for the rCB company.

Additionally, Enviro has extended an MoU with Canadian firm Treadcraft Ltd to build a 30ktpa tire recycling plant for the company in Buffalo, New York.

Based on the MoU signed in June, construction was expected to start on the plant by the end of 2018, but the two companies extended the MoU by another six months on 28 Dec.

The two firms also agreed that the new recycling plant will be in the form of a joint venture to be built at 1501 College Avenue, Niagara Falls, New York.

“The fact that we have a specified a site for the plant is an important step forward. We will now continue to formalise the terms and conditions of the project," said Sörensson.

Enviro expects to clarify the legal, financial and license issues of the plant within the next six months.