Canadian $10 million joint venture to recycle tires using microwave technology
According to a press release by Newsfile Corp., Environmental Waste International Inc (EWI), announced that it has entered into an agreement today with Torreco Inc. ("Torreco"), a private Ontario corporation, whereby Torreco agrees to invest $7 million to convert EWI's pilot plant in Sault Ste Marie, Ontario into the Company's first commercial scale tire recycling plant utilizing EWI's patented microwave technology. EWI will retain a 30% ownership interest in the plant and receive a royalty in perpetuity on the revenue generated from the sale of valuable commodities produced from its environmentally friendly tire recycling process.
The investment by Torreco is being made via common share purchases of Ellsin Environmental Ltd. ("Ellsin"), a wholly owned subsidiary of EWI, which owns the Company's waste tire facility in Sault Ste Marie including land, building and equipment. The $7 million will be used to expand and modernize the plant utilizing EWI's latest technology. In exchange for the investment in Ellsin, Torreco will also be granted the right to build three additional end-of-life tire recycling facilities in Ontario over the next five years if it meets certain conditions.
Torreco has made an initial share purchase in Ellsin of $400,000 and has committed to invest an additional $6.6 million over the next five months. After investing $7 million, Torreco will own 70% of Ellsin. The construction will require certain regulatory and legal approvals, and there can be no assurances that the entire $7 million will be invested.
Bob MacBean, CEO of EWI, said: "Construction of our first commercial plant will be the most significant step in the Company's evolution. We expect the ability to demonstrate our technology in a commercial facility to accelerate the Company's growth."
Mitch Ouimette, CEO of Torreco said, "Following an exhaustive due diligence process, we believe that the future of waste processing is through advanced and high-tech processing. EWI possesses the level of expertise and innovative technology to be a leader in converting waste to high value post-consumer products. This strategic partnership will strengthen both companies while raising the bar on waste processing."
About Environmental Waste International Inc.
Environmental Waste International Inc. specializes in eco-friendly systems for the breakdown of organic materials, including tires. The Company has spent over 15 years engineering systems that integrate the EWI patented Reverse Polymerization™ process and proprietary microwave delivery system. EWI's unique microwave technology safely processes and recycles waste tires, while recovering highly valuable commodities, including carbon black, oil and steel. Each unit is designed to be environmentally safe, energy efficient, and economically profitable for the operator. For more information please visit, www.ewi.ca.
Article by Newsfile Corp.