Enviro sees sharp rise in recovered carbon black interest

STOCKHOLM—Waste tire pyrolysis company Scandinavian Enviro Systems A.B. has seen a "sharp increase of interest" in recovered carbon black and pyrolysis oil since Russia's invasion of Ukraine on Feb. 24.

The tire recycler said it observed rising interest in old and new customers, according to a March 17 statement, but it could not yet assess what that would mean in terms of specific orders or supply agreements.

"The increase in interest entails that we will need to set priorities carefully," Enviro CEO Thomas Soerensson said, adding—in reference to an earlier decision—that it was wise of the company "not to be in a hurry to sign long-term supply agreements connected to our expansion plan."

The company's expansion includes the establishment of a total recycling capacity of 900,000 metric tons of end-of-life tires by 2030.

Citing "a U.S. market research company," Enviro said Russia, Ukraine and Belarus produce a significant portion of all carbon black used in Europe.

"At the same time, Europe wants to reduce its dependence on Russian oil and, because oil is a raw material used in carbon black production, this could also influence supply," the company added.

"The war is likely to have a major impact on the supply of carbon black in Europe and globally," Soerensson said, adding tire and rubber manufacturers are showing concern for shortages.

The company boss said the increased interest was apparent "more or less immediately after the Russian invasion.

"There has been a strong increase in the number of new and existing customers contacting Enviro to investigate the possibilities of receiving deliveries of carbon black from the company," he said.