The Board of Directors of Enviro has resolved to conduct a private placement of approximately MSEK 32.5, by which Michelin will subscribe for shares in Enviro corresponding to holdings of 20 per cent after the issue.
The strategic partnership is intended to include, among other things, the establishment of a jointly owned recycling plant for end-of-life-tyres and joint development work to expand the possibilities for the materials that are recycled using Enviro’s technology.
Enviro and Michelin have agreed that the plant will be joint owned, but the final terms and conditions regarding ownership shares, commercial conditions, and financing remain to be negotiated.
Thomas Sörensson, CEO of Enviro Systems, said: “As we have refined our method and enhanced the degree of recycling of the component materials, we have also improved the revenue potential. Being a partner in the plants is therefore a central part of our strategy.”
“By further developing our technology, we will also be able to recycle other finite and strategic materials, as well as expanding the area of use for the recovered carbon black, so that it can be used for more products.”