STOCKHOLM—Scandinavian Enviro Systems expects a strategic partnership agreement with Michelin to be finalized during the fourth quarter of the year, the tire recycler said Oct. 27.
The two sides signed a letter of intent in April for the partnership, with the aim to finalize an agreement by end of June.
That deadline was extended to end of October due to the restrictions caused by COVID-19.
With the pandemic still going, the two sides now expect a final agreement to be reached before the year.
"Both parties are determined to complete our letter of intent by reaching a final agreement as soon as possible," Enviro chairman Alf Blomqvist said.
The two companies, he said, see "a great potential in a strategic partnership and we expect to sign a final agreement during the fourth quarter this year."
Under the cooperation deal, Michelin has taken a 20 percent stake in Enviro, which has developed "proprietary technology" to recover oil, steel and carbon black from end-of-life tires.
Under a letter-of-intent announced in April, the parties are to expand the area of application for Enviro's pyrolysis technology, jointly build a plant based on the technology and make supply arrangements between both parties.