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March 13, 2019 02:00 AM

Enviro sees growth potential in North America

European Rubber Journal Report
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    Urban Folcker (left), Enviro's chief financial officer, and CEO Thomas Soerensson (right) talk with representatives from EE-TDF Cleveland L.L.C.

    GOTHENBURG, Sweden—Recovered carbon black manufacturer Scandinavian Enviro Systems A.B. has its sights set on North America, a region where it sees great potential for growth as it moves forward with joint venture initiatives.

    In the U.S., Enviro has secured joint venture projects with EE TDF Cleveland L.L.C of Cleveland, Texas, and Treadcraft Ltd., which operates a location near Buffalo, N.Y. Those projects, Enviro said in a news release, are progressing as planned.

    Enviro is seeking a third U.S.-based opportunity in Maryland.

    In Canada, Enviro has signed a memorandum of understanding with Regina, Saskatchewan-based ArticCan Energy Services Inc.

    But the Swedish recycling company believes there is more room for growth in both countries. Raw material pricing and availability continue to impact the industry overall, and companies are investing in costly production capabilities to meet more stringent environmental standards for emissions. These factors, which continue to force a rise in carbon black prices, are drivers for recycled carbon black demand.

    "This development also means that carbon black is decoupled from oil prices and made less sensitive to lower oil prices," Envrio CEO Thomas Soerensson said in a statement. "We are expecting the price floor to be higher than before, which benefits the profitability of recycled material. After all, our raw material costs are low, and in many cases, our materials even generate revenue."

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