Stockholm – Michelin has placed an engineering-services order with Scandinavian Enviro Systems (Enviro), the Swedish end-of-life-tire (ELT) processor has announced.
The SEK4-million (€400,000) deal, it said, also includes technical documentation concerning Enviro’s patented technology for material recovery of ELTs.
The transaction forms “a basis for the negotiations about a strategic partnership, which the parties have been conducting since April 2020,” the 26 Jan statement added.
Under a cooperation deal last year, Michelin took a 20% stake in Enviro, which has developed ‘proprietary technology’ to recover oil, steel and carbon black from end-of-life tires.
In December, Enviro said both companies had agreed on the key principles for establishing a jointly owned, recovery plant and a license agreement covering Michelin’s usage of related Enviro technology.
Enviro will next arrange an extraordinary general meeting to seek shareholder approval for the deal with Michelin.