Government of Saskatchewan reaches settlement with Shercom Industries

The Government of Saskatchewan has settled with Shercom Industries over its tire recycling dispute.

The Government of Saskatchewan says it has reached a settlement with Shercom Industries.

In a Tuesday announcement, the government said it agreed to pay $4.8 million to Shercom Industries, a Saskatoon-based tire recycling business.

“Shercom Industries accepts this payment in full and final satisfaction of its claims and acknowledges that it will have no further claims related to any matters raised in the lawsuit,” the government said in the announcement.

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The province did clarify the settlement is not “an admission of liability” by the province or any of the defendants in the case – adding that it believes the move “to be in the best interests of Saskatchewan residents and the tire recycling industry.”

All remaining details surrounding the settlement are considered confidential.

In a response to CTV News, Shercom Industries shared its reaction to the decision.

“Shercom is relieved that this matter is finally at end and we are prepared to move on. We are not prepared to comment further.”

The case of Shercom Industries became a multi-year saga that saw Shercom effectively go from holding a monopoly over used tire recycling in Saskatchewan to being essentially shut out of the process entirely.

The Tire Stewardship of Saskatchewan (TSS), which is responsible for recycling tires in the province, struck a deal in December 2022 with American-based Crumb Rubber Manufacturers Co. (CRM) and in July 2025 with Ontario-based Emterra Tire Recycling Ltd. to handle recycling operations in the northern and southern regions of the province.

CRM would later withdraw from the deal in April 2025.

The changed dynamics pushed Shercom to lay off dozens of workers after negotiations with TSS failed in the months that followed.

The company later opted to shut its recycling plant down.

The Saskatchewan NDP repeatedly criticized the government and Ministry of Environment throughout the saga for not supporting a Saskatchewan company.

In November 2024, the company filed a statement of claim at Saskatoon Court of King’s Bench, seeking at least $10 million in damages against the Government of Saskatchewan, the Tire Stewardship of Saskatchewan (TSS) and its CEO.

The statement of claim argued Shercom was unfairly excluded from a request for proposals to award a second tire recycler, further claiming the RFP allegedly said it was seeking a “second processor” and not a “second location.”

According to the lawsuit, Shercom believed it was excluded from the process.

-With files from Keenan Sorokan