Redeye initiates coverage of Scandinavian Enviro Systems with a positive stance. Enviro, a Swedish clean-tech company on the verge of fully commercialising its patented technology, allows valuable raw material recovery from used tyres – whilst solving an environmental issue. As input materials are virtually free, gross margins of around 65% are attainable. By Enviro’s side stands Michelin, which has verified the technology and entered into a strategic partnership - in addition to building their first co-owned plant together, for finalisation in 2023. We see a huge global potential for Enviro’s technology and significant upside in the share.