STOCKHOLM — Group Michelin and Swedish tire pyrolysis company Scandinavian Enviro Systems have extended a letter of intent to establish a strategic partnership until the end of October.
The agreement, disclosed in April 2020, stipulated that the parties would reach a final deal by mid-year, but the negotiations were "somewhat delayed," partly due to the ongoing pandemic, Enviro said.
As a result, the two sides are extending the agreement through 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," Enviro CEO Thomas Soerensson said.
Michelin acquired a 20% share in Scandinavian Enviro at the end of April as part the strategic partnership.
Once finalized, 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.