Stockholm-Scandinavian Environmental Systems (Enviro) and Michelin have finalized the details of the tire recycling strategic partnership, six months later than originally expected.
The two companies announced a planned partnership in April, with the aim of completing the transaction in June, with the aim of using Enviro’s technology to recycle waste rubber materials. As part of the transaction, Michelin acquired a 20% stake in the Swedish company.
According to the terms of the agreement, Michelin now has the right to build its own recycling plant based on Enviro’s technology.
When establishing such a factory, Michelin shall pay Enviro a one-time fixed, fixed non-recurring payment, and pay royalties based on a percentage of the factory’s sales.
According to Enviro’s regulations, the license agreement will be valid until 2035, and the company also has the right to continue to establish recycling plants with other parties.
Enviro Chairman Alf Blomqvist said: “Despite the pandemic and subsequent delays, we have now been able to finalize an agreement to establish a strategic partnership with Michelin.”
Blomqvist said that the agreement is “a very important milestone” for Scandinavian Environmental Systems, and it is also “a very important verification of our technology.”
He said: “In a year when unprecedented health conditions made it difficult for us to’get together’ and chart a course for our future cooperation, we managed to reach agreements on these key principles.”
Although negotiations were deadlocked due to Covid, Blomqvist said the delay gave Michelin and other international manufacturers more time to test the carbon black recovered by Enviro.
The agreement is subject to final approval by Enviro shareholders at an extraordinary general meeting to be held in January next year.
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Post time: Jan-16-2021