Our Business Model
The expansion ambition – 30 plants by 2030
A platform for extensive international expansion
Enviro’s expansion plan is to be able to commence four plant project every year in a couple of years (starting from 2025). To achieve this the company is starting to grow the organization and partnership as well as designing processes for rapid execution and short lead times with maintained safety, quality and efficiency. The site selection process is being developed currently. We have the opportunity to incorporate learnings from the currently ongoing joint project with Michelin in Chile as well. The Enviro expansion plan is assuming a potential growth reaching about 30 plants until 2030. This will require significant efforts and long-term commitments from stakeholders around the company.
From 2025, the ambition is to start 4 construction projects annually.
Sweden and Europe are priority markets for Enviro. A process for location selection is started to ensure aspects such as land, permits, building, infrastructure logistics together with everything else necessary. Linked to this, a commercial market analysis has been carried out to evaluate all competitive alternatives. Western Sweden is prioritized with requirements for proximity to the port from a logistical perspective. Most other locations in Europe are being evaluated for establishment soon. The rubber/tyre/petrochemical industry emphasizes proximity to their manufacturing sites, which is why this is an important argument for all future locations for our facilities.
Total output by 2030 is annually estimated at about 300 000 ton rCB, 450 000 tons TPO and 135 000 ton steel.
Step by step
Our goals for establishing a 10-year expansion plan with a potential of four new plant/year:
- Build our 1:st full scale plant with Michelin starting in 2021. Based on Michelin market share they consume approximately 2 m ton CB/year.
- Build our first full scale plant in west of Sweden. Scheduled to be in operation end of 2023.
- Technical ability: We prepare and organise ourselves for a module & short leed time based plant expansion process with a potential of four new plant projects/year.
- Establish a 10-year strategic financing plan with global finance advisor.
- Site & environmental permissions: Establish a site & permission function that secure sites and permits for our future plants. The west of Sweden as well as central Europe will be prioritized.
- Sales pipeline of rCB & TPO: Increase our long-term sales pipeline with demand from strategic as well as industrial customers of all our recovered products.
A phased approached in three steps with a long-term strategic plan built on partnerships
The Enviro expansion plan is assuming a potential growth reaching about 30 plants until 2030. This will require significant efforts and long-term commitments from stakeholders around the company. The business case calculations showing scenarios of EBITDA of around 60 percent for each plant is encouraging and the market is ambitious to implement recovered materials at a higher pace to reach corporate, national and global targets for CO2 reduction and circular use of limited resources.
Total output by 2030 is annually estimated at about 300 000 ton rCB, 450 000 ton TPO and 135 000 ton steel.
A phased approach in three steps with a long term strategic plan built on partnerships.