For tyre makers and compounders building recovered carbon black (rCB) into their sustainable-material programmes, Scandinavian Enviro Systems has been one of a handful of credible suppliers operating at industrial scale. That makes the Swedish end-of-life tyre (ELT) recycler's decision to apply for company reorganisation more than a corporate finance story. It is a live test of whether chemical ELT recycling can remain a dependable supply option while its most prominent proponent works through a liquidity crisis.
Enviro's board has resolved to apply for company reorganisation at the Gothenburg District Court. The court has approved the application. Under Swedish law, reorganisation is granted in three-month tranches.
The company states it has sufficient liquidity to operate through the initial period. Operations will continue "as usual" during that window while management develops measures to strengthen liquidity and profitability. The filing covers only the parent company, Scandinavian Enviro Systems AB (publ) -- subsidiaries are not included.
Enviro points to three main pressures behind the decision. First, contractual terms linked to its Infiniteria joint venture. Second, costs arising from disagreements over work on a plant project in Sweden. Third, ongoing arbitration proceedings, which it says have complicated efforts to secure additional financing.
The company also acknowledges that its Åsensbruk recycling plant has not generated sufficient cash flows. In practice, that puts the immediate focus on two things: negotiating revised payment terms with creditors, and reducing project execution risk on live contracts.
Enviro is not simply a recycling operator. It is among the few facilities producing rCB and tyre pyrolysis oil (TPO) at a scale relevant to tyre compounders. Any sustained disruption would affect more than one customer's supply chain.
For UK tyre distributors and fleet buyers, the direct exposure is indirect but real. Tyre brands that have incorporated Enviro-linked rCB into their sustainability credentials and communicated that to fleet and retail customers now face questions about supply continuity. Procurement teams sourcing tyres with verified sustainable-content claims should be mapping which products carry rCB and from which facilities.
Michelin is Enviro's largest shareholder. That relationship underlines why sustainability and procurement teams across the tyre value chain will be tracking the reorganisation administrator's next steps closely.
For recyclers and investors planning similar chemical recycling builds, the Enviro situation provides a sharper picture of where the financial model remains fragile: project-level execution risk, working-capital cycles, and the absence of stable pricing frameworks for ELT-derived outputs.
This connects to a longer-standing regulatory gap. ETRMA has argued for EU-wide end-of-waste criteria covering rCB and TPO, a framework that would make these materials easier to qualify, trade and finance. Without it, producers like Enviro continue to operate in a classification environment that adds cost and deters investment.
Enviro's confirmed liquidity runway is designed to reassure customers and suppliers that production and deliveries will not halt immediately. But it also sets a clear deadline. Management must secure additional financing and advance a creditor agreement within that window.
The company says it will publish a plan outlining how it intends to restructure the business as the reorganisation progresses. Discussions with suppliers and customers are described as ongoing.
Johan Sölveland of Ackordscentralen has been appointed reorganisation administrator. For counterparties (whether UK-based or elsewhere) the administrator's communications will be the primary source of clarity on payment terms, delivery schedules and project commitments in the weeks ahead.
The reorganisation follows a recent leadership transition. Fredrik Aaben was appointed chief executive earlier this year.
On appointment, Aaben described Enviro as holding a strong technology platform and expressed intent to drive execution against the company's long-term ambitions. The reorganisation shifts the immediate test from technology to financial delivery: consistent output, bankable contracts, and risk structures that allow tyre makers to use rCB and TPO at scale without recurring liquidity interruptions.
Tagged with: Scandinavian Enviro Systems, Michelin, rCB, pyrolysis, ELT recycling, ETRMA, company reorganisation, Fredrik Aaben, Åsensbruk
Disclaimer: This content may include forward-looking statements. Views expressed are not verified or endorsed by Tyre News Media.
.png)
