Stockholm – Michelin and Swedish tire pyrolysis company Scandinavian Enviro Systems (SES) have extended a letter of intent, signed earlier in the year, to establish a strategic partnership.
The agreement, announced in April 2020, stipulated that the parties would reach a final deal by mid-year.
However, the negotiations were “somewhat delayed”, partly due to the ongoing pandemic, Enviro announced in a 22 July statement.
As a result, the two sides are extending the agreement until the end of October.
“Our negotiations are continuing with undiminished strength, but factors including the ongoing pandemic, with the accompanying travel restrictions, have meant that we have been unable to proceed as quickly as we had hoped,” said Thomas Sörensson, CEO of Enviro.
Michelin acquired a 20% share in Scandinavian Enviro at the end of April as part the strategic partnership.
Once finalised, the collaboration aims to establish a joint supply agreement between the two companies and will look to scale up Enviro’s pyrolysis technology through a “jointly owned” tire recycling plant.
Enviro has developed a process using its "proprietary technology" to recover oil, steel and carbon black from end-of-life tires.