Enviro and Michelin have set out plans to build a tyre-recycling plant in Chile.
The companies have agreed to establish a joint venture to build and operate the facility, which will be able to recycle 30,000 tonnes of construction equipment tyres every year.
Enviro will own a 10% stake in the joint venture while Michelin will own the remaining 90%.
The two companies have also signed a license agreement which entitles Michelin to establish its own recycling plants based on Enviro’s technology, up until 2035.
A third agreement covers the terms and conditions for Michelin’s use of Enviro’s patented technology and sets out how payment will be made.
All three agreements must be approved by Enviro’s owners at an Extraordinary General Meeting (EGM).
Thomas Sörensson, CEO of Enviro, said: “This partnership has validated our leading technology position in a way that we would never have achieved by ourselves. We are now receiving inquiries from players in more industries relating to everything from purchasing to the establishment of various forms of collaboration.
“The oil that we recover from the tyres is attracting growing interest from the oil and chemicals sector, which regards it as crucial in managing a transition to a more circular economy and our assessment is that, in the long term, oil will be our single most valuable end product.”