Leading global tyre maker, Michelin has joins Antin and Enviro to announce the finalization of a shared investment plan for the construction of a first end-of-life tire recycling plant in Uddevalla, Sweden. The project will be based on Enviro’s unique pyrolysis technology with the ability to extract raw materials from multi-component products.
The joint venture has secured a series of multi-year contracts for the supply of used tires and the upcycling of recovered carbon black and pyrolysis oil. This first plant will have capacity to recycle approx. 35,000 tons of used tires annually and to create up to 40 green jobs in the local community.
This joint venture announces the final investment decision for the construction of its first used tire recycling plant. Antin and Enviro entered into the joint venture in March of 2023 to build a series of plants in chosen European geographies.
Antin is a majority shareholder of the JV, Michelin a minority shareholder and Enviro has an option to become a significant minority shareholder.
The first factory, based in Uddevalla, Sweden, has obtained all the necessary environmental and building permits and authorizations. Construction has already begun, and the plant is expected to be operational during 2025.
With an initial aim to process approx. 35,000 tons of used tires annually, the plant should create up to 40 green jobs in the local community during its first phase.
Multi-year supply contracts
In addition to obtaining financing for the construction of the industrial plant, the joint venture signed a series of multi-year contracts regarding the supply of end-of-life-cycle tires as well as recovered carbon black and pyrolysis oil.
In this context, Michelin continues its approach of proactively supporting the development of used tire recycling ecosystems and is committed to collaborating on the future developments of this joint venture. As an example, Michelin has signed a multi-year supply agreement regarding carbon black and pyrolysis oil.
One million tons
As previously announced, the joint venture plans on building factories throughout Europe targeting a total annual recycling capacity of one million tons of used tires. Once the Uddevalla plant begins operating, the joint venture will undertake the construction of additional factories in other European countries in order to ensure a rapid rollout of this technology. Antin and Enviro have already agreed to a financing plan for the construction of these factories.
The volume of tires that reach the end of their life cycle and are then discarded has continued to rise, now annually amounting to 3.5 million tons within Europe alone. This joint venture was established to develop used tire recycling throughout Europe, producing sustainable raw materials. Foremost among these materials produced are recovered carbon black and oils that may then be used in the manufacturing tires and in the petrochemical industry. By replacing virgin carbon black with the joint venture’s recovered material, it is possible to reduce the emissions arising from the use of conventional carbon black by more than 90%.
“Michelin has strongly supported the creation of this joint venture between Enviro and Antin. The undertaking began in 2020 when Michelin became a shareholder in Enviro to support the maturation of this technology. Today, we are moving on to a new step with the finalization of the investment for the construction of this first factory in Sweden. The launch of this ambitious industrial program, which is expected to be developed on a European scale, perfectly echoes the strategic objectives of the Michelin Group to reach 100% renewable and recycled materials by 2050, reducing the overall environmental impact of its tires,” states Maude Portigliatti, High-tech Materials Business Director – Member of the Michelin Group Executive Committee.
“Antin is delighted to join Enviro and Michelin to announce approval for the construction of the first of several plants planned by the joint venture. We are excited to help create a fully circular platform which will restore end of life tires to its constituent raw materials that will be sustainably used over and over again. This is part of Antin NextGen’s strategy to focus on proven technologies that require substantial capital to scale.” adds Anand Jagannathan, Antin Senior Partner.