Due to the ongoing pandemic, Scandinavian pyrolysis oil firm Enviro Systems and the French tyre manufacturer Michelin assess that a final agreement regarding a strategic partnership is expected to be reached during the fourth quarter 2020 instead of the end of October, which Enviro had previously communicated.
Apart from the fact that the pandemic has made it more difficult to hold regular face-to-face meetings, the negotiations have continued, and progress has been made, says Enviro.
The negotiations have been ongoing since April when Enviro and Michelin announced that they had signed a letter of intent regarding a strategic partnership. In connection with this, Enviro conducted and finalised a directed share issue (private placement) of approximately SEK32.5 million to Michelin, corresponding to ownership of 20% after the completed issue, which Michelin subscribed for through its wholly owned subsidiary Michelin Ventures SAS. Following the completion of the issue at the end of April, Michelin became the largest shareholder in Enviro.
“Both parties are determined to complete our letter of intent by reaching a final agreement as soon as possible. Both Enviro and Michelin continue to see a great potential in a strategic partnership and we expect to sign a final agreement during the fourth quarter this year,” says Alf Blomqvist, Chairman of Enviro.
The parties have agreed that the partnership, in addition to the directed share issue, will comprise the following:
. A development agreement to deploy Enviro’s pyrolysis technology on a larger scale
. A shared project to build a factory to industrialise the technology. The location of the plant will be confirmed at a later date.
. A joint supply agreement between Michelin and Enviro