Scandinavian Enviro Systems has signed a term sheet with TreadCraft Carbon on the key parts of an agreement to establish a jointly owned plant for the recovery of used vehicle tyres based on Enviro’s leading technology.
This means the two parties have now agreed on the main conditions for a plant deal.
A final agreement is expected to be finalised during the second half of 2019, and would entail the sale of a recycling plant, worth approximately between €25 and €30 million, as well as license revenue and future profits.
Thomas Sörensson, CEO of Enviro, said: “We altered our strategy a year ago and have since focused on plant projects where we can share future revenue by being part owners.”
“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.”