Michelin buys 20% of Enviro’s shares for 3 million euros to cooperate in recycling raw materials for tires

Each year, approximately 1 billion tires end their life. Therefore, Michelin decided to cooperate with Swedish startup Enviro to recycle such tires and make high-quality new products.

Each year, approximately 1 billion tires end their life. However, the new recycling technology believes that tires can be used to manufacture new high-quality raw materials. Enviro, a Swedish startup with 20 employees, was founded in 2001. The company has developed a technology that can change the chemical composition and physical form of this pneumatic material (tire) during pyrolysis, while ensuring that energy consumption is reduced to lowest.

This highly innovative technology can produce high-quality products such as recycled carbon black, pyrolysis oil, natural gas, and such products can be reintegrated into the production links of different industrial sectors. Thanks to this recycling technology, tires that are now considered to be waste can be recycled and remade into raw materials.

According to foreign media reports, tire manufacturer Michelin is working with Enviro to develop and mass produce an innovative pyrolysis technology to recycle tires at the end of their life. The two companies will cooperate based on the following four aspects:

  1. Sign a development agreement to deploy Enviro’s pyrolysis technology on a larger scale;
  2. Michelin will acquire 20% of Enviro’s shares, totaling 32,526,262 SEK (approximately 3 million euros), equivalent to 116,165,223 shares, making Michelin the largest shareholder of Enviro. The Michelin Group will provide support to Enviro through representatives of the board of directors and is expected to submit a shareholder vote. On April 15, local time, both parties have signed a subscription agreement.
  3. The two parties will cooperate in the construction of a project to industrialize the technology, and the factory site will be determined later;
  4. Michelin and Enviro have also reached a joint supply agreement.

This partnership will complement the expertise of the two companies and accelerate tire recycling. Michelin will contribute its industrial expertise in factory construction projects and provide expertise in R&D and production. Enviro will provide its patented pyrolysis technology to produce high-quality products.

Currently, the two companies are still negotiating to reach a final agreement by mid-2020.

Author: Nabeel K
Email: nabeel@wheelsjoint.com

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