Tyre recycling: Work to start on Enviro & Antin JV plant

Uddevalla Municipality in Sweden has authorised Scandinavian Enviro Systems (Enviro) to proceed with the construction of its new joint venture end-of-life tyre recycling plant. This clearance comes after Enviro, Antin Infrastructure Partners, and Michelin reached a final decision on the project’s investment on 7 February. Having secured all essential environmental and construction approvals, Enviro anticipates commencing construction in the first quarter of 2024.

The joint venture has secured equity financing for the plant’s construction and signed multi-year agreements for the supply of end-of-life tyres to the plant in Uddevalla, as well as the distribution of recovered carbon black and oil. Among the recipients of these products are prominent companies within the tyre, rubber, and oil sectors, including Michelin, Preem, Nokian Tyres, and H&R Group. These agreements outline the scheduled deliveries of recovered oil and carbon black over contract periods ranging from five to ten years, with a total estimated value of approximately 180 million euros.

Preparations for rollout underway

The plant in Uddevalla will be the first full-scale recycling plant based on Enviro’s technology and the first set up by the joint venture, which Enviro formed with Antin in March 2023. The joint venture plans to achieve an annual recycling capacity of up to one million tonnes of end-of-life tyres by 2030 by building facilities across Europe.

After commissioning the Uddevalla plant, the joint venture will seek to accelerate the rollout of further sites. Enviro says the joint venture has already begun the procedure of establishing facilities in other European countries, with its NextGen fund reaching an agreement for these plants’ construction.

Up to 30% JV stake

Ownership of the land where the plant will be built will now pass to the joint venture, with the joint venture reimbursing Enviro for accrued costs. It will pay half this amount in cash and convert the rest to a stake in the joint venture. Enviro will announce the amount and the ownership stake at a later date. Enviro has an option to acquire an ownership share of approximately 30 per cent in the joint venture.

The plant should be fully operational in 2025. General contractor for the plant’s construction is EBC Group together with Fratera Fastigheter. ”We have established an excellent cooperation with EBC Group, Fratera and the municipality of Uddevalla, which has been key to getting here. The starting notice is yet another milestone in Enviro’s ambition to reach a world-leading position within its field,” says Fredrik Emilson, Enviro’s chief executive officer.