STOCKHOLM, Sweden—Tire pyrolysis-oriented Scandinavian Enviro Systems A.B. is setting up a holding company in the U.S. to facilitate the establishment of co-owned recycling plants in the region.
The move is part of the Swedish company's co-ownership strategy, under which the firm is pursuing joint venture projects in the U.S. with Treadcraft Ltd. in New York and EE-TDF Cleveland L.L.C. in Texas.
"Our new strategy means that Enviro wants to become part-owner of plants based on our technology as it provides good revenue opportunities," CEO Thomas Soerensson said.
However, becoming a partner will require structural changes within company and the U.S. entity—being established with immediate effect—will address those issues, he added.
In August, Enviro signed a term sheet agreement with TreadCraft, covering a pyrolysis plant in Buffalo, N.Y.
At the same time, the company said, work also is under way to obtain supplementary agreements for the terms of the joint venture and license agreements.
"The decision to establish a holding company in the U.S. is part of the process to create the right conditions for final agreements and financing of the facility," Soerensson noted.
Gothenburg, Sweden-based Enviro recycles 6,000 metric tons of scrap tires every year at its plant in Asensbruk, Sweden. Using its proprietary technology, Enviro recovers oil, steel and carbon black from end-of-life tires.
Clients for those parts include Volvo Cars and Trelleborg Wheel Systems, according to Enviro.