Enviro increases stake in tire recycling joint venture

Stockholm – Scandinavian Enviro Systems has raised its stake in its end-of-life tire (ELT) pyrolysis joint venture with Antin Infrastructure, which is also backed by Michelin.

The recycler received a payment of SEK25.6 million (€2.25 million) from the JV after achieving a “first predefined milestone” in the construction of an ELT pyrolysis plant in Uddevalla, Sweden.

Half of the payment, to partly cover costs being incurred by Enviro in establishing the recycling plant, was received in cash and the other half in the form of shares in the JV, the company said 20 Aug.

With similar payments made in February of SEK53 million and SEK54 million in May, Enviro now has in total received SEK132.4 million in payments - 50% in the form of shares.

The JV was formed in March 2023 with ambitious plans to construct ELT recycling units across Europe with a total processing capacity of 1 million tonnes by 2030.

At the time, it was agreed that Enviro would be part-compensated for its ownership of the land at the Uddevalla site, and receive up to 30% share-ownership in the JV.

In its latest release, Enviro said it will “continuously receive compensations linked to the achievement of certain predefined milestones.”

Construction of the full-scale plant in Uddevalla was initiated in February, with the facility and the land it is built on are now owned by the JV.

As previously reported by ERJ, after commissioning the plant in Uddevalla, the JV aims to “accelerate the build-out of additional plants in other European jurisdictions.”