Sweden's Enviro to build tire recycling plant in China

GOTHENBURG, Sweden — Recycled carbon black company Enviro Systems Inc. and Chinese state-owned Guangzhou Vanlead Group Co. Ltd. have agreed  to set up a turnkey recycling plant in southern China.

Guangdong-based Vanlead is among the largest tire-making groups in south China, according to Enviro. The company goes to market with the Wanli Tire and Diamond Tire brands.

Construction of the new facility, which will have 30,000 metric ton per year capacity, is set to start later this year in Guangdong, the city where Vanlead is based, according to Enviro. The facility will supply Vanlead's production units throughout China, according to a memorandum of understanding. 

Many project details have not been released as they are subject to further negotiations. However, Enviro CEO Thomas Sörensson noted that "the plant will follow the basic design that we developed with (Swedish engineering group) AF and that is now ready."

Vanlead, according to Mr. Sörensson, wants to "use Enviro's reclaimed carbon black material in its tire production on a massive scale" and he believes this partnership is only the beginning of a larger trend.

"China is the world's largest market for tires, rubber, and carbon black," Mr.Sörensson said. "There is great awareness that raw materials are limited, and state-owned Vanlead is the first to exhibit this high level of ambition."

This story first appeared on the website of European Rubber Journal, a London-based sister publication of Tire Business.