Enviro files for bankruptcy of Swedish tire recycling subsidiary

Gothenburg, Sweden – Scandinavian Enviro Systems AB (publ) has filed for bankruptcy of its wholly owned subsidiary ‘Tyre Recycling in Sweden AB’ as part of an ongoing company reorganisation aimed at improving “liquidity and long-term profitability.”

In a 10 March notice, the Swedish end-of-life-tire (ELT) pyrolysis company said the bankruptcy petition had been submitted to the District Court of Gothenburg.

The move concerns the subsidiary operating a tire recycling facility in Asensbruk, which Enviro said had “played an important role in validating Enviro’s technology and the products produced using this technology.”

The technology validation task, said Enviro, “is now considered completed” and the operation has not been profitable.

Enviro said the decision to file for bankruptcy is part of measures linked to its ongoing corporate restructuring, following a legal dispute linked to the joint venture Infiniteria (ERJ report).

The bankruptcy is expected to affect the company’s results through an impairment of SEK84 million (€8 million).

Enviro added that its operations in Gothenburg will continue as normal while additional measures are implemented within the framework of the reorganisation.

The current company reorganisation applies only to the parent company, Scandinavian Enviro Systems AB (publ), the company said.