The Michelin joint venture with Enviro and Antin has secured a series of multi-year contracts for the supply of used tyres and the upcycling of recovered carbon black and pyrolysis oil
This first plant will have capacity to recycle approx. 35,000 tons of used tyres 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 tyre 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 authorisations. 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 tyres annually, the plant should create up to 50 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 tyres as well as recovered carbon black and pyrolysis oil.
In this context, Michelin continues its approach of proactively supporting the development of used tyre 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 tyres. 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.
Maude Portigliatti, High-tech Materials Business Director – Member of the Michelin Group Executive Committee says; “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 tyres.”
“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 tyres 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.
“The plant in Uddevalla will be the joint venture’s first full-scale tyre recycling plant and a first important step in our joint effort to create the world’s first large-scale tyre recycling group. Together we will play a crucial role in the industrial transformation needed for a more sustainable future”, added Alf Blomqvist, Chairman of Scandinavian Enviro Systems.
