Enviro in dispute with waste tire pyrolysis JV Infiniteria over potential delays

Stockholm – Waste tire pyrolysis company Scandinavian Enviro Systems AB has reported a dispute with Infiniteria, an end-of-life tire (ELT) recycling joint venture backed by French private equity fund Antin Infrastructure Partners’ and Michelin.

In a 6 Feb statement, Enviro said it has been served with a request for arbitration from Infiniteria Europe Sarl and its subsidiary Infiniteria Sweden AB, which are seeking nearly €54 million in alleged damages.

According to Enviro, the claim arises from the parties’ partnership concerning “a plant project in Sweden.”

The claimants, it said, have alleged that Enviro is liable for damages related to an “alleged breach of contract and related damages,” of which “€42 million is attributable to future lost profits,” as estimated by the claimants.

In addition, the claimants are seeking “interest on the amount claimed and compensation for legal costs.”

In its statement, Enviro said it "firmly opposes" the claims which it said it considers to be “unfounded and speculative,” adding that it intended to "dispute the claims and the claimed amount in their entirety."

The Gothenburg, Sweden-based recycler said it “strongly disagrees” with Infiniteria’s view on “the circumstances of the matter, the legal grounds invoked in the request for arbitration, and the calculation of the alleged damages.”

The company said the claimants are seeking compensation for damages “which have not yet materialised,” based on “alleged anticipated future delays that have not occurred.”

Enviro said it has been formally served with the request for arbitration and will submit “a statement of defence, and potential counterclaims, in due course.”

The ELT recycler entered a joint venture agreement with Antin and Michelin in March 2023 with ambitious plans to construct ELT recycling units across Europe with a total processing capacity of 1 million tonnes by 2030.

The JV's first project is currently under construction in Uddevalla, Sweden, with a nameplate capacity to process 34.5 kilotonnes per annum of ELTs.

As previously reported by Enviro, the unit was set to be operational towards the end of 2025, with a provisional acceptance certificate (PAC) scheduled for mid-2026. (ERJ report)