Antin Infrastructure Partners has partnered with a Sweden-based recycling company Scandinavian Enviro Systems to create a large-scale tyre-recycling business.
With initial investments from Antin’s NextGen platform, the partnership intends to establish recycling plants across Europe with a total capacity of up to 1m tonnes of end-of-life tyres recycled annually by 2030.
Enviro, which has no initial ownership in the joint venture, has the option to acquire a 30% stake. As part of the venture, Enviro’s technology will be licensed to the partnership exclusively throughout Europe.
The plants will produce sustainable raw materials, including recovered carbon black and oils to be re-used in the tyre and petrochemical industries.
The companies said French multinational tyre manufacturing company Michelin has backed the joint venture with supply agreements regarding recycled materials from the first plants established. Michelin is also planning to join the venture as a partner, as the future plants are built.
The companies said the first full-scale commercial plant will be built in Uddevalla, Sweden, with an initial capacity to recycle 34,500 tonnes of disposed of tyres, equal to 40% of the annual volume of end-of-life-tyres in Sweden. The plant is expected to be fully operational by 2025.
Once the Uddevalla plant is commissioned, the partnership intends to progress with its European roll-out strategy.
Alf Blomqvist, chairman of Scandinavian Enviro Systems, said: “With Antin’s successful track record in scaling infrastructure platforms and its strong industrial understanding, and Michelin’s world-leading position in sustainable tyres, we have found excellent partners to jointly accelerate our pan-European plant expansion and contribute to making the tyre industry circular.
“We will now be able to focus on our core business and competencies such as technology and material development, optimisation and quality control.”
Anand Jagannathan and Rodolphe Brumm, NextGen Partners at 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.
“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.”
Maude Portigliatti, EVP of high-tech materials and member of the group executive committee at Michelin, said: “Today’s announcement is a significant step in our ambition to achieve a circular and more sustainable tyre production.
“This 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.”
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