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January 04, 2019 01:00 AM

Enviro pursues U.S. tire recycling joint ventures

European Rubber Journal
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    Enviro plans to set up at least two tire recycling joint venture businesses in the U.S.

    GOTHENBURG, Sweden—Scandinavian Enviro Systems A.B. has advanced its tire recycling ambitions in the U.S., with plans to set up at least two joint venture businesses in the country.

    The Swedish recovered carbon black (rCB) producer said that it had signed a memorandum of understanding with EE-TDF Cleveland L.L.C. to build a 30-kilotonnes-per-year tire pyrolysis JV to produce rCB from end-of-life tires.

    The plant will be located at the U.S. tire waste management company's site in Texas, with future facilities envisaged for Louisiana and Oklahoma.

    The MoU will be in place for six months with an option to be extended.

    "Our ambition is to sign a binding agreement over the next three months and then commence our first plant project in second quarter 2019," Enviro CEO Thomas Soerensson said.

    He added that going forward, Enviro will be prioritizing plants with full or joint ownership, setting out a new business strategy for the rCB company.

    Additionally, Enviro has extended an MoU with Canadian firm Treadcraft Ltd. to build a tire recycling plant for the company in Buffalo, N.Y.

    Based on the MoU signed in June, construction was expected to start on the plant by the end of 2018, but the two companies extended the MoU by another six months Dec. 28

    The two firms also agreed that the new recycling plant will be in the form of a joint venture to be built in Niagara Falls, N.Y.

    "The fact that we have a specified a site for the plant is an important step forward. We will now continue to formalise the terms and conditions of the project," Soerensson said.

    Enviro expects to clarify the legal, financial and licensing issues within the next six months.

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