Royalties from Cabot-Michelin agreement begin flowing
US-based speciality chemicals company Cabot Corporation has announced reaching “another key milestone” in its technology licensing agreement with Manufacture Francaise des Pneumatiques Michelin for use of Cabot’s patented elastomer composite technology in tyre applications. Regular royalty payments to Cabot have now begun and will extend through fiscal 2022.
Since 2008, Cabot has been working with Michelin to develop the technology and manufacturing operations necessary to commercialise the technology in global tyre markets. Through this agreement, Michelin has exclusive rights to Cabot’s elastomer composite process technology for tyre applications and is entitled to build and operate plants that utilise this technology.
“This royalty agreement is the continuation of a prosperous and long-term relationship with Michelin, as well as a significant new business opportunity for Cabot,” said Patrick Prevost, president and chief executive officer, Cabot Corporation. “The agreement highlights Cabot’s technology leadership and deep commitment to developing innovative solutions for the tyre industry.”
Cabot’s patented technology uses liquid phase mixing rather than conventional dry phase mixing to incorporate reinforcing agents such as carbon black into elastomers. This technology delivers superior dispersion of reinforcing agents such as carbon black within the elastomer, which creates composites that display unique properties.
The same kind of elastomer composite technology utilised by Michelin is available for non-tyre applications directly from Cabot through its Transfinity brand of elastomer composite products.