PARIS & LONDON & NEW YORK--(BUSINESS WIRE)--Regulatory News:
Scandinavian Enviro Systems and Antin Infrastructure Partners (Paris:ANTIN) today announced the formation of a joint venture supported by Michelin to create the world's first large-scale tire recycling group.
The JV will combine Enviro's unique and patented technology for the extraction of carbon black and pyrolysis oil from end-of-life tires with Michelin’s leading position in sustainable tires and Antin’s expertise in developing and scaling tomorrow’s infrastructure platforms to enable the industrial development of this innovative recycling technology.
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).
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.
Michelin is planning to partner in the JV as the plants are built in the future.
A first plant in Sweden with an ambitious plan to create additional recycling units in Europe
The first full-scale commercial plant will be built in Uddevalla, Sweden, with initial capacity to recycle 34,500 tons of disposed tires, equal to 40% of the annual volume of end-of-life-tires in Sweden. Plant construction is scheduled to start in the first half of 2023, subject to a final investment decision by the JV, and the plant is expected to be fully operational by 2025.
Following successful commissioning of the Uddevalla plant, acceleration of the European roll-out will commence. Site selection in other European countries has been initiated to ensure a rapid roll-out, with an aim to build recycling capacity for up to approximately one million tons of end-of-life tires by 2030, corresponding to a third of all tires being disposed of in Europe each year.
Sustained by Michelin, this new innovative European player will accelerate the circular economy in the tire industry
The volume of disposed end-of-life tires has been steadily growing to reach 3.5 million tons per year in Europe alone. The joint venture between Enviro and Antin’s NextGen platform will develop, with the support of Michelin, end-of-life tire recycling plants throughout Europe to produce sustainable raw materials. These include reclaimed carbon black and oils that can be reused in the tire and petrochemical industries. By replacing virgin carbon black with Enviro's recycled carbon black, carbon emissions can be reduced by more than 90%, compared to using conventional carbon black. Based on the target volume of one million tons of end-of-life tires, carbon dioxide emissions would be reduced by 670,000 tons.
Alf Blomqvist, Chairman of Enviro, commented: “I am very proud and pleased with today’s announcement which represents a significant recognition of Enviro’s technological and market leadership in recycling of tires. With Antin’s successful track record in scaling infrastructure platforms and its strong industrial understanding, and Michelin’s leading position in sustainable tires, we have found excellent partners to jointly accelerate our pan-European plant expansion and contribute to making the tire industry circular. Enviro will now be able to focus on our core business and competencies such as technology and material development, optimization and quality control.”
Anand Jagannathan and Rodolphe Brumm, NextGen Partners at Antin Infrastructure Partners, commented: “Antin is very excited to partner with Enviro and Michelin to create the world’s first large scale tire recycling business. Enviro's patented pyrolysis technology and its highly experienced management team, combined with Michelin's world leading position in sustainable tires, makes this an ideal platform. Antin has always been at the forefront of identifying key areas of tomorrow’s infrastructure and we believe this JV will play a critical role in accelerating Europe’s circular economy. We look forward to working with Enviro, Michelin and the JV’s management team to quickly scale the JV to its full potential."
Maude Portigliatti, Executive Vice President, High Tech Materials – Member of the Group Executive Committee at Michelin, commented: “Today’s announcement is a significant step in our ambition to achieve a circular and more sustainable tire production. This is further proof of Michelin's ability to step up to achieve its 2050 strategic ambitions and reduce the tire's overall environmental impact by forging innovative partnerships for an ever more circular industry.”
About Scandinavian Enviro Systems
Scandinavian Enviro Systems contributes to enhanced environmental and economic sustainability using a patented technology for the recovery of valuable raw materials from scrapped and end-of-life products, including tires. The production of new tires using carbon black recovered with Enviro’s technology reduces carbon dioxide emissions by up to 93 per cent compared with the use of virgin carbon black. Enviro has its head office in Gothenburg and a plant for the recycling of end-of-life tires in Åsensbruk. The largest owner is the French tire manufacturer Michelin. Enviro was founded in 2001 and is listed on Nasdaq First North Growth Market. www.envirosystems.se
About Antin Infrastructure Partners
Antin Infrastructure Partners is a leading private equity firm focused on infrastructure. With over €30 billion in assets under management across its Flagship, Mid Cap and NextGen investment strategies, Antin targets investments in the energy and environment, telecom, transport and social infrastructure sectors. With offices in Paris, London, New York, Singapore and Luxembourg, Antin employs over 200 professionals dedicated to growing, improving and transforming infrastructure businesses while delivering long-term value to portfolio companies and investors. Majority owned by its partners, Antin is listed on Euronext Paris (Ticker: ANTIN – ISIN: FR0014005AL0).
About Michelin
Michelin, the leading mobility company, is dedicated to sustainably enhancing its clients’ mobility; designing and distributing the most suitable tires, services, and solutions for its clients’ needs; providing digital services, maps, and guides to help enrich trips and travels and make them unique experiences; and developing high-technology materials that serve a variety of industries. Headquartered in Clermont-Ferrand, France, Michelin is present in 175 countries, has 132,200 employees and operates 67 tire production facilities which together produced around 167 million tires in 2022. (www.michelin.com)
