Saskatchewan Premier Scott Moe is calling for a review of procurement practices, as well as an assessment of the future need for tire recycling in the province.
This after a Saskatoon company announced it was laying off employees and closing down some operations due to losing a key contract.
Moe is also calling for a pause on the current request for proposal for a Saskatoon-area processor.
“It seems that there’s been, to some degree, some breakdown in terms of the relationships in that realm,” Moe said. “We need those relationships to be strong.”
Last week, Shercom Industries announced it was laying off more than 60 employees from its facility.
Tire Stewardship of Saskatchewan, a non-profit that oversees tire recycling in the province, awarded a contract for 40 per cent of tire recycling to an American-based company that expects to open a plant in Moose Jaw.
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Shercom says in the current climate, it doesn’t know how long the company would remain in the province.
“We are thankful to the premier and the minister for making this decision,” Marlin Stangeland, CEO of Shercom Industries said.
“We are encouraged and we look forward to seeing the results of this review.”
In a statement to CTV News, Tire Stewardship of Saskatchewan said:
“At this time, we have only very limited information and we cannot provide comment other than to advise that the Minister of Environment has made a request that the Tire Stewardship of Saskatchewan suspend its current request for proposals for a Saskatoon-area scrap tire processor. We are considering the nature of that request, and we remain committed to working with the Ministry of Environment and all our stakeholders.”
Moe says the goal of the review is to maximize value to the tire recycling chain.
“Maximum value at the end of the day is always the effort and the initiative, and then looking at employing as many people within the province as we possibly can,” Moe told reporters at the Legislature.
“I’m confident that Cam [Swan, former deputy minister] will be able to dig into that. He has experience in this space and can provide some recommendations to the minister to ensure that we do have a strong space where tire recycling is happening here in Saskatchewan.”
