Shercom Industries has reached a $4.8 million settlement with the Government of Saskatchewan, ending a legal dispute that began in 2024 over provincial tire recycling contracts.

The Saskatoon-based tire recycling company confirmed it accepts the payment as full and final resolution of its claims. According to the province, Shercom “acknowledges that it will have no further claims related to any matters raised in the lawsuit.” Additional settlement details remain confidential.

Company president Shane Olson stated that Shercom is “relieved that this matter is finally at an end” and is prepared to move forward.

The province emphasized that the settlement does not constitute an admission of liability, describing the agreement as being in the best interests of Saskatchewan residents and the tire recycling industry.

Background of the Dispute

The legal conflict stemmed from changes to Saskatchewan’s tire processing framework overseen by Tire Stewardship of Saskatchewan (TSS), the non-profit entity responsible for managing the province’s scrap tire recycling program.

Contractual Expectations

Shercom’s claim centered on a provision included when Saskatchewan’s tire stewardship program was approved in 2018. The provision required tires collected in the province to be processed within Saskatchewan.

Shercom interpreted this as a supply assurance and invested in rebuilding its facility following a 2016 fire.

However, in 2022, TSS signed an agreement with Crumb Rubber Manufacturers (CRM) as a second processor. In early 2024, CRM secured the northern processing contract over Shercom.

Allegations and Operational Impact

In its $10 million lawsuit filed in November 2024, Shercom alleged:

  • Breach of contract by the provincial government
  • Market fragmentation through regional processor contracts
  • Loss of business leading to substantial operational reductions
  • Layoffs affecting more than 100 employees
  • Publication of alleged defamatory statements regarding product quality

Shercom further sought punitive damages and compensation for what it described as injurious falsehoods.

TSS and its executive director, Stevyn Arnt, were named as defendants alongside the provincial government.

Industry and Policy Implications

The case highlighted structural tensions within extended producer responsibility (EPR) frameworks, particularly when stewardship organizations introduce competitive regional processing models in previously consolidated markets.

Key issues included:

  • Interpretation of supply assurances under stewardship programs
  • Competitive procurement processes in regulated waste streams
  • Market concentration versus regional diversification
  • Financial stability of domestic processing infrastructure

With the settlement concluded, Shercom signals a strategic reset, while Saskatchewan’s stewardship system continues under its current structure.

Today, the dispute has been resolved with no admission of liability, and the financial terms have been finalized at $4.8 million.

To learn more, please read the full original article at Saskatoon StarPhoenix.