As announced by the Scandinavian Enviro Systems (Enviro), the company has prolonged its memorandums of understanding (MoUs) with two firms overseas– Guangzhou Vanlead Group Co. Ltd, which is a tire maker in China, and Genera4 SA, a Chile-based investor.

Enviro’s press release reveals that the extension of the MoU with Vanlead was aimed at meeting the state-owned firm’s procurement process. The signing of the memorandums originally took place on March 29. Chief executive officer of Enviro, Thomas Sörensson, said that the work to establish tire recycling facilities continues both in China and Chile.

The CEO highlighted that both sides are ambitious in their efforts to establish a facility in Guangzhou, and that the project should be launched in 2017. Enviro has chosen the location of the plant in cooperation with the involved Chinese company.

As for the Chilean company, MoU that was signed in November with Genera4, has received the extension for three months, and it has prospects for subsequent extensions.

Enviro said that a number of Chile-based rubber producers and global tire manufacturers have tested the company’s recycled carbon black. Sörensson stated that there is a growth in demand for the firm’s tire recycling solution among mining firms, tire manufacturers and the governments in Chile after the release of the state’s new Recycling and Extended Producer Liability Law.

According to Thomas, by extending the MoU with Genera4, the company expects to keep collaborating with the investor further to eventually launch a tire recycling facility in the country.