Enviro CEO Thomas Sörensson visits The Tyre Recycling Podcast: "The partnership is a game changer"
On April 12, Thomas Sörensson was a guest on the British Tyre Recycling Podcast, with regard to the new agreement with Antin Infrastructure Partners announced on March 29, 2023. In the interview, Thomas Sörensson talks about the partnership with Antin, the potential market and Enviro's planned plant in Uddevalla.
“This is truly a game changer in the industry. I think this will be paving the way for pyrolysis and the possibilities for sustainable materials and the circular economy – both for the carbon black materials and the tire pyrolysis oil. The three different parties [Enviro, Antin Infrastructure Partners, Michelin] all contribute with significant and critical experience”, says Thomas Sörensson, CEO Enviro, in the interview.
The full interview can be found here.
An extract of the interview can be found below.
Enviro has the opportunity to acquire 30 percent, how does that work?
"When we started the strategic development of the company several years ago, which started with the partnership with Michelin, we wanted to make sure that we have a long-term stake in the infrastructure investments that are happening, and be part of the value creation over time. Not just as a technology supplier but as a co-owner. This is of course extremely beneficial for us and our shareholders."
What is Antin's role in the joint venture partnership?
"Antin is a well-known specialist in this type of infrastructure investment. They are based in France but have a global presence with around 200 employees focused on this type of infrastructure development. They have capacity for larger investments, in mature markets. This is what they call a Next-Gen investment where they explore new potential infrastructure technologies like [Enviro’s] and try to find the best technology providers and partners. Antin has selected us after a multi-year evaluation of different technology providers."
"We [Enviro] have been talking about establishing Uddevalla for a while, but the strategic plan that has been communicated has always included the establishment of multiple sites. We can now implement that strategy together with Antin and the management team of the joint venture."
The goal of recycling 1 million tires by 2030 is remarkably ambitious. What percentage of the materials do you think will go back to the tire industry?
“This figure is a target that we communicated earlier, and it is based on our assessment of the potential that exists. If we look at the overall market, everyone in the tire industry is looking for new sustainable options and recycled carbon black is definitely a solution that we have proven from Enviro and Michelin's side can be reintroduced, in both regular tires and racing tires."
On the question of the growing market, how many plants does Enviro see in Europe?
"I can't give a figure at the moment because it depends on the capacity of the sites that are established – more capacity means fewer sites and vice versa.”
Companies that previously did not want to talk about recovered carbon black are now talking about it. What do you think has changed and why manufacturers are now focusing on recycling?
"I think there are several different things that have happened in recent years. Of course, it's about the environment, both legislation and the market are moving in a direction where we have no choice but to find alternative resources to fossil raw materials. The tire industry is putting enormous pressure on carbon black producers to find solutions, but there is also increasing pressure from end customers."
"The major vehicle manufacturers are driving the transition and are now talking to all subcontractors in the rubber and tire industry to make sure they meet their ambitions to increase the share of recycled and sustainable materials. This is changing the whole industry. Before, we [Enviro] were technology providers asking to put materials into the product. Now it's being designed into the products."
"There has also been an evolution of our technology, and therefore the quality of our recycled materials. In general, we have also become much more professional in all respects in the last five years or so. I know that several of our competitors have also made great strides in understanding the technology, the properties of the materials and the requirements of the market."
"There is no choice, we need more sustainable solutions and Enviro is very happy to contribute on a large scale."
When do you expect the Uddevalla plant to be up and running?
"It will be fully operational in 2025. It's a big undertaking because it's the first major industrial-scale facility for us and the partners we have. But this platform that we are establishing now will be the one that we will roll out in many sites in the future. Therefore, it is very important that we are consistently careful in everything we do, that we plan and choose the right suppliers who are able and willing to expand with us. It requires effort and time."
For further information, please contact:
Thomas Sörensson, CEO Enviro, +46 (0)735-10 53 43, thomas.sorensson@envirosystems.se
Alf Blomqvist, Chairman of the Board Enviro, +46 (0)733-14 97 00, alf@blomqvistunlimited.com
Mangold Fondkommission AB is Enviro’s Certified Adviser on Nasdaq First North Growth Market Stockholm.
Scandinavian Enviro Systems AB
Frihamnen 16B, SE-417 70 Gothenburg
info@envirosystems.se
envirosystems.se/
N.B. The English text is an in-house translation of the original Swedish text. Should there be any disparities between the Swedish and the English text, the Swedish text shall prevail.
Scandinavian Enviro Systems contributes to enhanced environmental and economic sustainability using a patented technology for the recovery of valuable raw materials from scrapped and end-of-life products, including tires. The production of new tires using carbon black recovered with Enviro’s technology reduces carbon dioxide emissions by up to 93 per cent compared with the use of virgin carbon black. Enviro has its head office in Gothenburg and a plant for the recycling of end-of-life tires in Åsensbruk. The largest owner is the French tire manufacturer Michelin. Enviro was founded in 2001 and is listed on Nasdaq First North Growth Market. www.envirosystems.se
Tags:
