Tyre giant Michelin is supporting a new joint venture between Enviro Systems and Antin Infrastructure Partners to create a large-scale tyre recycling group. Michelin is planning to partner in the JV as the plants are built in the future.
The plant will be built in Uddevalla, Sweden, with initial capacity to recycle 34,500 tons of disposed tyres, equal to 40% of the annual volume of end-of-life tyres in Sweden. Construction of the plant is scheduled to start in H1 CY23, subject to a final investment decision by the JV, and is expected to be fully operational by 2025.
A joint release issued by the partners stated that once the Uddevalla plant is successfully commissioned, they will accelerate the European roll-out. The partners aim to build recycling capacity for up to approximately one million tons of end-of-life tyres by 2030, corresponding to a third of all tyres being disposed of in Europe each year. Towards this, site selection in other European countries has been initiated to ensure a rapid roll-out, they said.
Win-Win Partnership
The JV has secured a multi-year supply agreement with Michelin for the first plants established. The agreement with Michelin includes delivery of recovered carbon black and Tire Pyrolysis Oil (TPO).
Enviro will combine its unique and patented technology for the extraction of carbon black and TPO from end-of-life tyres with Antin’s expertise in developing and scaling tomorrow’s infrastructure platforms and Michelin’s leading position in sustainable tyres to enable the industrial development of this innovative recycling technology.
The initial investment in the JV will be funded by Antin’s NextGen platform, which will be the majority owner of the JV. Enviro's ownership in the joint venture will ultimately correspond to approximately 30%. As part of the JV, Enviro's patented technology will be licensed to the JV on an exclusive basis throughout Europe.
Alf Blomqvist, Chairman, Enviro said the company has found excellent partners in Michelin and Antin to jointly accelerate its pan-European plant expansion and contribute to making the tyre industry circular. He added that the company will be able to focus on its core business and competencies such as technology and material development, optimisation and quality control.
Anand Jagannathan and Rodolphe Brumm, NextGen Partners, Antin Infrastructure Partners, said Enviro’s patented pyrolysis technology and its highly experienced management team, combined with Michelin's world leading position in sustainable tyres, makes this an ideal platform.
This investment is further proof of Michelin's ability to step up to achieve its 2050 strategic ambitions and reduce the tyre’s overall environmental impact by forging innovative partnerships for an ever more circular industry, said Maude Portigliatti, Executive Vice President, High Tech Materials – Member of the Group Executive Committee, Michelin said.
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