MONTREAL—Tirex Corp. is selling its molded rubber mat business less than a year after contracting to enter it. The Montreal-based tire recycling company is entering final negotiations with International Merchandising and Manufacturing Co. to divest its only rubber product manufacturing activity. IM2 signed an exclusive five-year contract with Tirex early this year to produce the rubber welcome mats.
The divestiture plan calls for Quebec-based IM2 to sublet 40,000 square feet of Tirex's facility to continue production of the mats using crumb rubber from Tirex. IM2 expects to use 8 million pounds of crumb over the next two years, the firm said.
Tirex plans to use the proceeds of the sale to improve its patented TCS-1 cryogenic scrap tire disintegration system.