Based on the market response and our own calculations, we judge that the oil recovered from end-of-life tyres could contribute to a strong increase of revenues from recycling plants that use our technology.
Our negotiations are continuing with undiminished strength, but factors including the ongoing pandemic, with the accompanying travel restrictions, have meant that we have been unable to proceed as quickly as we had hoped. Therefore, we have jointly decided to prolong our letter of intent until the end of October this year and our joint assessment is that we will be able to provide new information at the end of October this year at the latest.
My role will be to ensure smooth collaboration between customers and partners, ensure that we follow budget, live up to set conditions and ensure quality assurance of Enviro's deliveries. I believe my experience in the energy and industry sectors will contribute to a favourable development.
Michelin is one of the world’s leading tyre manufacturers and this collaboration means that we can become established globally in a way that we would never have managed alone.
Enviro’s technology is becoming increasingly relevant as more industries are becoming environmentally aware. Five years ago, few companies were interested in CO2 negative production, but today there’s widespread talk of CO2 reduction.
Interest in recycling in general and recycled carbon black in particular has increased sharply this year, which has strengthened the market position of Enviro and our technology.
Enviro’s patented technology follows European legislation regarding waste combustion and is very competitive in India. One of the driving forces for our technology in India is connected to producer responsibility, something that was confirmed during meetings with tyre manufactures, among others. We have already had a meeting with an Indian tyre manufacturer back home.
Our production has been running in accordance with both certifications for a long time, being certified formally is important in our customer dialogues, as it’s often required.
EnviroCB C550 has the capacity to replace virgin carbon black in a new infrastructure application area by up to 100 per cent. It’s highly significant that an international rubber producer is stepping forward in this way to approve the material and is conducting production tests. This also benefits our future plant customers.
In recent years, the general materials recycling market has quite clearly shifted. More than ever, political and fundamental market forces are pushing the world to focus more clearly on reducing resource consumption and demand that incineration be replaced with materials recycling.
The main driver for Enviro is that most of the major players in the tyre industry sets goals to increase the proportion of recycled materials in newly manufactured tyres.
Supplying materials to Volvo Cars for two years is a real quality anniversary and a weighty argument for players who are looking to invest in our plants.
This proves the strong position of our technology in the international tyre-recycling market. Vanlead is one of China’s largest, and one of the world’s most progressive tyre producers, and has chosen Enviro’s technology to integrate tyre recycling with their own tyre production
We definitely have the capacity for new customers, and considering that the annual global market for carbon black is anticipated to exceed USD 25 billion by 2020, we see great potential for our material. Every time a new customer sees the quality and environmental benefits, we get one step closer to closed cycle rubber production.
The tyre and automotive markets are primary segments for Enviro, but it is important to show that the recycled materials meet quality requirements in for example the construction industry and in general merchandise, where large amounts of standard rubber products are used.
China is the world’s biggest tyre market and new solutions for processing end-of-service tyres more circularly are necessary from both environmental and resource-related perspectives. Vanlead wants to take the initiative in the industry.
The fact that a world-leading vehicle manufacturing company such as Volvo Cars has chosen to use Enviro's recycled materials is very important in negotiations with all our interested parties. Interest is increasing in both the carbon black product and the recycling technology.
Both Enviro and Vanlead see the great potential for Enviro's environmental technology with respect to materials recovery from end-of-service tyres in China. A joint venture with one of China’s biggest tyre manufacturers enables both parties to capitalise more rapidly and successfully on the world's biggest carbon black market.
Lately, we’ve received positive feedback from several international tyre producers that have performed tests on our reclaimed carbon black material. China is the world's largest market for tyres, rubber, and carbon black; there is great awareness that raw materials are limited; and state-owned Vanlead is the first to exhibit this high level of ambition. These are all positive indicators.
Each new application that is approved by the industry opens up new opportunities for customers of both facilities and Enviro’s reclaimed materials worldwide.
We have gone through a detailed recruitment process in order to find the right profile, experience and motivation, and I am confident that we have achieved just that. With a new Sales Manager, we will double our sales efforts and focus on both existing and potential clients. Enviro is in an ideal position to strengthen its market focus.
The deal with AnVa Polytech, which delivers components containing recycled carbon black to Volvo Cars, has been an important step on the path to future deals. Each application approved by the industry means increased opportunities for Enviro’s plant sales.
The EU trademark increases market awareness of the product and will be a good tool selling our recycled carbon black on larger scale and on new markets. It also makes it easier to see how valuable it can be to invest in tire waste.
A modern web also allows for more ways to market the business online, a segment where we will invest more in the future. Visitors will also be able to take part of detailed information regarding the materials Enviro’s patent makes it possible to recover for commercial use.
There is great potential for Enviro's technology in Chile and elsewhere in South America. Countries such as Peru, Brazil and Columbia also have a great need for viable tyre recycling. Once we have established the first recycling plant, we can showcase the operation and how it works to other countries and operators, and that is our target right now.
It is particularly enjoyable that the jury highlights our international potential to solve the environmental problem of waste tyres.
ÅF will now become a more important collaboration partner for Enviro, partly in our joint work with a Basic Design and partly in the more long-term work to establish recycling plants around the world. This is an exciting collaboration and we can see major potential in Enviro
We have been in continuous contact with the Chilean market for several years and our solution is now in demand as a result of the country's new producer responsibility legislation. The carbon black which is recycled from tyres – including mining tyres – using our technology is industrially accepted and has been tested by a number of Chilean rubber manufacturers as well as several international tyre manufacturers
With the capital injection and the patent approval, we are definitely in a very strong position. We have reinforced our competitive position on an international level while the rights issue brought with it many new shareholders who we are very happy to have along on the next stage of our journey.
In the autumn we will be producing a Basic Design together with ÅF. The work is expected to take three months. There is significant need for our technology in Chile and we hope to receive more positive decisions as soon as the project is completed.
The results showed that the proportion of bio-oil varies from 48 per cent to no less than 79 per cent
For Enviro, this is a fantastic opportunity to present to President Bachelet our solution for increased sustainability within the rubber industry. My hope is that this will have a positive effect on our ongoing negotiations for a recycling plant in Chile.
The King is greatly committed to environmental issues and is an outstanding ambassador for both Swedish industry and environmental technology in the international arena.
This validation confirms the value of the large amount of mining tires available in South America. These results bring us closer to a recycling plant in Chile.
“It’s a great honour to welcome his Majesty the King to our recycling installation and show him how we work to achieve a more sustainable society.
Thomas brings with him a great deal of energy and an exciting background at a time when the company is ready to take the next step.
The fact that Volvo Cars is now adopting environmental rubber that uses our recycled carbon black in its production is a major commercial breakthrough.