Recyclatech, a Scottish company which has developed a way to recycle rubber tyres without any environmental impact, has signed a deal with Spanish firm.
The Glasgow-based company, developed through Edinburgh Napier University in 2006, will provide technological and scientific support to Biotyre.
Biotyre is finalising negotiations to build a pilot plant in Spain at an estimated cost of 600,000 Euros.
The Spanish company aims to recycle 3000 tonnes of tyres per year.
Recyclatech also plans to establish a laboratory and a plant facility in Grangemouth with a view to targeting the European market later this year.
Company chairman John Pool said: "With thousands of used tyres ending up in landfill every year, our emerging technology is key to reducing the environmental impact this causes".
He added: "The agreement with Biotyre is the first milestone in creating a solution to this global issue and a major step forward for Recyclatech".