Stockholm – Scandinavian Enviro Systems AB's plans to set up tire recycling facilities in the US and Denmark have been delayed again as the partners sort out financing and "prioritisation" issues.
Enviro had announced plans in 2019 to establish recycling ventures in Buffalo, New York, and Cleveland, Texas, but now the Stockholm-based company has disclosed both projects are on hold.
In Denmark, Enviro partner WindSpace A/S is waiting for necessary permit tests to be carried out by relevant Danish authorities before they can proceed to the next step, Enviro said in a 7 Jan statement.
Negotiations continue in Buffalo, where Enviro and its partner Treadcraft Ltd. had expected to have their venture in operation before year-end 2019.
However, Enviro said it could not, at this stage, specify a date for when the negotiations “can be expected to run their course."
In addition, the company has halted its negotiations with EE-TDF Cleveland LLC in Texas for "reasons of prioritisation."
The company did not provide further details.
Meanwhile, Enviro said it is developing a public, international corporate bond to finance its ownership of upcoming recycling facilities, according to CEO Thomas Soerensson.
In September 2019, Enviro disclosed it was setting up a holding company in the US to facilitate the establishment of co-owned recycling plants in the region as part of its "co-ownership" strategy.
Despite the setbacks, Soerensson said interest in recycling in general and recycled carbon black in particular had increased sharply in 2019.
"The tire and rubber manufacturers have now seriously begun to realise the benefits of using recycled carbon black, but also recycled oil," Soerensson said.
The Enviro CEO said the company boosted investments in its Asensbruk, Sweden, facility in 2019, enabling it to make higher deliveries to customers such as Trelleborg AB and Elastomeric/Hexpol.