Shercom questions its future in Saskatchewan after tire recycling review

Without what Shercom Industries calls a “reasonable” contract offer this week, the Saskatoon-based tire recycler has “no future in the province.”

That’s according to a statement from the Saskatoon company’s president, Shane Olson.

Olson said his initial reaction to the provincial government’s new action plan for Tire Stewardship of Saskatchewan (TSS) was disappointment.

TSS is a non-profit corporation, tasked by the Saskatchewan Environment Ministry with overseeing all scrap tire recycling in the province.

“There was no admission of error that dropped a bomb on Shercom, and no consequences for the people that created this mess,” Olson explained in his statement.

Olson said his company is looking for three things in a future contract: assurances of used tire supply, a five-plus-year contract, and a voice on the future of the industry in Saskatchewan.

“The comments by the minister to develop the best tire recycling program going forward negates the fact that Shercom had achieved the pinnacle of what any tire program hoped to achieve,” Olson continued.

Shercom closed its tire processing facility at the end of last April after the company and the TSS couldn’t negotiate a new, long-term contract. More than 60 employees were laid off. At the time, Shercom was responsible for recycling 100 per cent of all Saskatchewan scrap tires.

At the same time, Olson accused the TSS of canvassing California-based Crumb Rubber Manufacturing, which has since set up a manufacturing facility near Moose Jaw and now process up to 100 per cent of all Saskatchewan’s scrap tires.

In May, Premier Scott Moe tasked former deputy environment minister Cam Swan with conducting a review of tire recycling. The review results were released on Oct. 18, saying TSS will be pursuing a new contract with Shercom for the northern part of Saskatchewan.

Marlin Stangeland, Shercom’s CEO, said he hasn’t been given any indication on what a new contract for Shercom could look like.

“We’re not sure exactly what will be proposed,” he said. “We’ll need to wait to see whether there’s something there that we can work with.”

“If Shercom is not offered a reasonable contract this week,” Olson said the company “will be forced to invest in current and future growth opportunities outside of Saskatchewan.”

Stangeland said the company has grown in its manufacturing division, with national and international projects in progress. But, he said, if the company’s supply of rubber doesn’t come from used tires in Saskatchewan, then they have to look at “where’s the best place to be.”

650 CKOM has sent multiple requests for an interview with Christine Tell, Saskatchewan’s environment minister. As of publication time, Tell has not responded.