Swedish tire pyrolysis equipment manufacturer to launch recovered carbon black production with treadcraft carbon llc in the U.S.
Scandinavian Enviro Systems AB (Enviro) – a renowned tire pyrolysis equipment manufacturer and operator – reports about signing a term sheet with TreadCraft Carbon LLC, Buffalo, NY, USA, on the key parts of an agreement to establish a jointly owned plant for the recovery of materials from used tires based on Enviro’s pyrolysis technology. According to the Enviro, the two parties have now agreed on the main conditions for a plant deal. A final agreement is expected to be finalized during the second half of 2019 and would entail the sale of a pyrolysis plant, worth approximately between EUR 25 and 30 million, as well as license revenue and future profits.
“We altered our strategy a year ago and have since then focused on plant projects where we can share future revenue by being part-owners. With this agreement, we have passed an important milestone, as it both confirms Enviro’s new strategy and constitutes the first plant outside Sweden where we become one of the owners,” says Thomas Sörensson, Enviro’s CEO.
In the signed term sheet, the parties agree on key terms such as the scope of delivery, construction cost, payment and delivery terms, guarantees, contractual penalties, applicable law and more. Based on the agreement, the parties shall now negotiate the terms of a complete and definitive construction agreement regarding a tire pyrolysis plant on South Park Avenue, Buffalo, NY, USA. This adds to other agreements, including the terms of a joint venture and the licensing agreement made by the company. Enviro reports that the negotiations are all conditional on financing, a process that is also ongoing. TreadCraft Carbon LLC is a subsidiary to TreadCraft Ltd., Dunneville, Ontario, Canada.
According to Enviro, other projects that have been evaluated are still relevant, as the increasing market interest in recovered carbon black (rCB), and green fuel oil recovered from tires will require additional pyrolysis plants for recovering end-of-life tires.
Enviro owns and operates a plant for recovering end-of-life tires in Åsensbruk, Sweden. The plant has a capacity of 6000 tons of tires per year. The recovered carbon black from the plant is used, among other things, to produce rubber components for the automotive industry and end customers include Volvo Cars, Trelleborg Wheel Systems and Elastomeric.
Article by Enviro.