Enviro receives MSEK 53 payment for costs incurred, of which half in cash and half as ownership share in joint venture
Scandinavian Enviro Systems has received an initial payment for costs incurred relating to the plant in Uddevalla, Sweden. The payment has been made by the joint venture established by Enviro and Antin Infrastructure Partners.
The payment covers part of the costs incurred by Enviro for establishing the full-scale recycling plant for end-of-life tyres in Uddevalla and Enviro will receive further payments to cover these costs. Construction of the plant in Uddevalla commenced last week.
In addition to the cash payment of MSEK 26.5, Enviro also received shares in the joint venture. Enviro’s stake in the joint venture will fluctuate in pace with the capitalisation process for the joint venture, but over time Enviro is entitled to acquire an ownership share that ultimately corresponds to approximately 30 per cent.
The joint venture will be the world’s first large-scale tyre recycling company, combining Enviro’s unique patented technology for extracting carbon black and pyrolysis oil from end-of-life tyres with Antin’s expertise in developing and scaling up future infrastructure platforms. The joint venture plans to construct plants across Europe targeting a total annual recycling capacity of up to one million metric tons of end-of-life tyres by 2030. Enviro and Antin Infrastructure NextGen fund have previously agreed on a plan for financing the construction of the plants.
Enviro will receive revenue through both service fees and an asset fee based on the profitability of the respective plants while the company will have the possibility of building up long-term value through ownership in the joint venture.
