STOCKHOLM — Scandinavian Enviro Systems A.B.'s plans to set up tire recycling facilities in the U.S. and Denmark have been delayed again as the partners sort out financing and "prioritization" issues.
In Denmark, Enviro and its partner there, WindSpace A/S, are waiting for necessary permit tests to be carried out by relevant Danish authorities before they can proceed to the next step, Enviro said.
In Buffalo — where Enviro and its partner Treadcraft Ltd. had expected to have their venture in operation before year-end 2019 — Enviro said negotiations with TreadCraft will continue, "but we cannot, at this stage, specify a date for when they can be expected to run their course."
In Texas, negotiations with EE-TDF Cleveland L.L.C. have halted for "reasons of prioritization," Enviro said.
At the same time, Enviro said it is developing a public, international corporate bond to finance its ownership of upcoming recycling facilities, according to CEO Thomas Sörensson.
In September 2019, Enviro disclose it was setting up a holding company in the U.S. to facilitate the establishment of co-owned recycling plants in the region as part of its "co-ownership" strategy.
Despite the setbacks, Mr. Sörensson said interest in recycling in general and recycled carbon black in particular has increased sharply this year, which has strengthened Enviro's market position.
"The tire and rubber manufacturers have now seriously begun to realize the benefits of using recycled carbon black, but also recycled oil," Mr. Sörensson said. "In both cases, it provides great opportunities for them to reduce both their own and their customers' environmental impact."
The Enviro CEO said the company has boosted investments in its Åsensbruk, Sweden, facility, which has allowed it to make higher deliveries to customers such as Trelleborg A.B. and Elastomeric/Hexpol.
Mr. Sörensson also claims that several "leading players" in the industry had external experts review Enviro's projects and concluded that Enviro's technology is on the cutting edge in terms of development