BUFFALO, N.Y. — Scandinavia Enviro Systems A.B., the Swedish pyrolysis technology firm, is moving forward with plans for a tire recycling plant in Buffalo jointly owned by Enviro Systems and a Canadian recycling concern.
Gothenburg, Sweden-based Enviro Systems has signed a "term sheet" with TreadCraft Carbon L.L.C. — a subsidiary of Dunneville, Ontario-based TreadCraft Ltd. — that covers the main conditions of establishing and operating the facility using Enviro's pyrolysis technology.
Scandinavian Enviro and TreadCraft Ltd. have been discussing establishing this venture since June 2018. TreadCraft recycles medium truck tires into crumb rubber and also produces clean bead and belt wire.
The companies expect to finalize the deal during the second half of 2019. The agreement involves a recycling plant worth between $28 million and $33 million, as well as license revenue and future profits, Enviro said.
"With this agreement, we have passed an important milestone, as it both confirms Enviro's new strategy and constitutes the first plant outside Sweden where we become one of the owners," Enviro CEO Thomas Sorensson said.
Enviro recycles 6,000 metric tons of scrap tires every year at its plant in Asensbruk, Sweden, according to the company. The recovered carbon black produced by Enviro is used to make rubber components for the automotive and other industries.
Clients for those parts include Volvo Cars and Trelleborg Wheel Systems, Enviro said.