EWI Receives $4 million Order for Reverse Tyre Polymerisation Machine
Ellsin Environmental Ltd has ordered prototype reverse polymerisation technology from Environmental Waste International Inc’s 100 per cent owned subsidiary, EWI Rubber Inc. Under a signed Prototype Agreement EWIR will build a TR900 system for $4.175 million, about 80 per cent of the $5.25 million total project cost. Based on EWI’s patented reverse polymerisation process, the system is designed to break down at least 900 tyres a day and recover carbon black, oil and steel, while producing its own power from the off-gases. As part of the agreement, EWIR will grant Ellsin all available territorial rights for the TR technology in Canada and the United States, subject to future performance requirements.
The order is the culmination of months of collaboration between EWIR and Ellsin. Ellsin is financing the project from private investors, an Ontario provincial funding program and EWI (as indicated below). Ellsin has reportedly made a $50,000 non-refundable deposit and must deliver an additional $1,150,000 in the next four weeks in order to proceed with the contract. Once the full deposit has been received, EWIR will begin the engineering and manufacture of the TR900 while assisting Ellsin with its permit and site preparations.
The complex deal also sees EWI purchase a 37.5 per cent equity interest in Ellsin. EWI will finance the purchase through a share placement with Ellsin’s investors.