Scandinavian Enviro Systems and Treadcraft Limited extend the MoU that was signed on June 29th, 2018 by six months. The parties intend to establish a Joint Venture for co-ownership of a tyre pyrolysis plant with an annual capacity of 30,000 tonnes tyres. The plant is planned to be established at 1501 College Avenue, Niagara Falls, New York, USA. “The fact that we have a specified site for the plant is an important step forward. We will now continue to formalize the terms and conditions of the project. Within the next six months, legal, financial and license issues will be clarified, and a plant order will be established. Joint ownership is in line with Enviro’s new business model and it means that we will benefit from the returns that will be generated by a plant” says Thomas Sörensson, CEO of Enviro.

The contracting party Treadcraft Limited, located in Wainfleet, Ontario, Canada, was incorporated in 2007, and is today active on the North American market.

Earlier, Enviro signed a memorandum of understanding with EE-TDF Cleveland, LLC, a US company active in the tyre-recycling segment in the United States. The agreement remains in effect for six months, has an option to extend, and opens up opportunities for additional joint venture plants with an annual recycling capacity of 30,000 tonnes tyres.

“Our ambition is to sign a binding agreement over the next three months and then commence our first plant project in Q2 2019,” says Thomas Sörensson, CEO of Enviro.

The initial plant construction is planned for EE-TDF Cleveland’s existing site in Texas, US, with future plants in Louisiana and Oklahoma. The MoU paves the way for establishing additional plants in these states on the condition that the first plant is established according to plan.

Sörensson continues, “in the future, Enviro will be prioritising plants with full or joint ownership. In this instance, we will require joint ownership as part of the transaction, which is something that is also welcomed by our new partner. We see it as something positive to be joint owners in the plants that we establish in that we will benefit from their anticipated returns. This, of course, is completely in line with our new business strategy.”

At the same time, tire-derived carbon black from Enviro’s tire pyrolysis plants finds more applications in the industry. Halmstad Gummifabrik (HGF) has approved Enviro’s recycled material for its automotive components and fittings. HGF has shown interest in EnviroCB for several years and now moves ahead with its plans to meet the automotive industry’s demand for more environmentally friendly products.

“The plan for our partnership is to start out small. But we are convinced that, like our other customers, HGF will make a transition into sustainable materials,” notes Thomas Sörensson, CEO of Enviro.

HGF and Enviro will now engage in more detailed commercial discussions with a target delivery framework for EnviroCB for automotive segment applications in the first half of 2019. HGF’s customers include such companies as Volvo, Land Rover, and Ford.

“It’s very gratifying to see that Swedish rubber producers and automotive manufacturers are at the forefront of the conversion to recycled materials, which is both of strategic importance and a competitive advantage for them,” says Thomas Sörensson.

Article by Enviro.