Scandinavian Enviro Systems (Enviro) and Antin Infrastructure Partners (Antin) announced to have established a joint venture (JV) in order to, based on Enviro's technology, create a large-scale tire recycling group.

The JV plans to establish plants across Europe with a total capacity of up to one million tons of end-of-life tires recycled annually by 2030. The JV partners have agreed on a plan for the financing of the new plant expansion. Antin, a leading private equity firm focused on infrastructure, will finance the initial investments.

Michelin, world leader in sustainable tires, supports the JV by signing multi-year supply agreements regarding recycled materials from the first plants established. Michelin is planning to join the JV as a partner, as the future plants are built.

Enviro has no initial ownership in the JV but has an option to acquire an ownership in the JV that will ultimately correspond to approximately 30 percent. The Board of Enviro intends to review, as soon as practically possible within the next 24 months, the long-term capital requirements of the Company to finance Enviro's ownership of the JV. Enviro will be represented in the JV's Board of Directors already from launch.

Enviro will receive revenue through service fees as well as an asset fee, the latter which will be calculated based on the profitability of each plant, whilst having the opportunity to build long-term value through its ownership in the JV.

The first full-scale commercial plant established by the JV will be the plant previously planned in Uddevalla, Sweden. The JV combines Enviro’s unique patented technology for extracting carbon black and pyrolysis oil from end-of-life tires with Antin’s expertise in developing and scaling tomorrow’s infrastructure platforms.

To read the full press release, please proceed to Enviro’s website.