Scandinavian Enviro Systems and French global tyre manufacturer Michelin signed three definitive agreements that form the basis for their strategic partnership. The agreements regulate the terms for a jointly owned plant for the recycling of end-of-life tyres in Chile; the terms and conditions for Michelin’s use of Enviro’s patented technology; and the terms and conditions for payment to Enviro for deliveries of technology and services to the jointly owned plant in Chile.
Before the agreements can come into effect, they must be approved by the owners of Enviro during a special general meeting (EGM).
The three agreements comprise a shareholder agreement concerning a joint venture (jv) for a recycling plant in Chile based on Enviro’s patented technology. The plant will be able to recycle 30,000 tonnes of construction equipment tyres/year. Enviro will own a 10% stake in the jv, while Michelin will own 90%. Enviro will also make a capital contribution of approximately MSEK 20 to the jv and will receive royalty payments in accordance with the license agreement; A license agreement that extends through 2035, and which entitles Michelin to establish its own recycling plants based on Enviro’s technology; and an agreement that regulates the conditions and the payment to Enviro for design, as well as engineering and project services in connection with the Chile plant.
With the agreement and the strategic partnership in place, Enviro has achieved 3 of 4 central strategic cornerstones and established decisive prerequisites for an aggressive expansion phase.
Alf Blomqvist, President of Enviro, said the partnership with Michelin will enable them to build their first large-scale recycling facility that will eventually expand and commercialise Enviro technology. The recovered oil from the tyres is also attracting growing interest from the oil and chemicals sector, which regards it as crucial in managing a transition to a more circular economy, added Thomas Sörensson, CEO of Enviro.