The Saskatchewan government has reached a significant settlement of $4.8 million with Shercom Industries, a tire recycling company based in Saskatoon. This settlement comes in the wake of a lawsuit that Shercom filed in November 2024, claiming that the province breached its contract. The company had been the exclusive tire recycling entity in the province until Saskatchewan's plans to enable additional processors, including U.S.-based Crumb Rubber Manufacturing in Moose Jaw, compromised Shercom's business and led to layoffs.

In defense of its actions, the Saskatchewan government stated that the inclusion of other recyclers was within its rights and did not constitute a breach as claimed by Shercom. Nonetheless, the settlement indicates a willingness to resolve the issue without admitting liability. Provincial officials expressed that they believe this arrangement serves the best interests of the residents of Saskatchewan and the overall tire recycling industry, despite the confidentiality of many details surrounding the agreement.

This case illustrates the complexities within public contracts and the challenges faced by local businesses when new competitors enter the market. For Shercom, the financial burden of layoffs and lost business showcases the risks involved in single-entity contracts. The resolution of this lawsuit may influence future governmental contracts and strategies in the recycling sector, especially as provinces look to balance local industry support with competitive practices.