Michelin to support major tire-recycling initiative

STOCKHOLM — Michelin Group has pledged to support a tire-recycling venture being set up by Scandinavian Enviro Systems (Enviro) and Antin Infrastructure Partners, whose initial goal is to recycle 1 million metric tons of tires by 2030.

Michelin's initial support is in the form of multi-year supply agreements regarding recycled materials, such as recovered carbon black and tire pyrolysis oil. The French tire maker said it plans to join the joint venture (JV) later as a partner as additional recycling plants are built.

The JV draws on Enviro's patented technology for extracting carbon black and pyrolysis oil from end-of-life tires. Antin, a private-equity firm, is bringing its expertise in developing and scaling infrastructure platforms to the venture.

The JV plans to establish a network of plants across Europe, starting with a plant in Uddevalla, Sweden, that's expected on stream by 2025 with a rated capacity of 34,500 tons of disposed tires per year. Construction is scheduled to start in the first half of 2023.

Site selection for additional plants has been initiated to ensure a rapid roll-out, the venture partners said, in order to reach the goal of 1 million tons of end-of-life tires by 2030, a volume that corresponds to a third of all tires being disposed of in Europe each year.

The creation of the JV is the founding parties' response to the increasing demand for more sustainable solutions for end-of-life tires, the venture founders said, and is in line with leading tire makers' commitments to convert their materials content to 100% sustainable by 2050.

For example, Enviro claims that by replacing virgin carbon black with recycled carbon black, carbon emissions can be reduced by over 90%.

Initially, Antrin will be the venture's sole financial backer. Enviro has an option to acquire up to 30% in the JV, with the firm's board to review the long-term capital requirements over the coming 24 months.

The new JV will build on a working relationship Michelin and Enviro have dating back to 2020 when they disclosed a tire-recycling partnership that granted Michelin the right establish its own recycling plants based on Enviro's technology.

That deal also called for Michelin to acquire a 20% stake in the Swedish company.

Michelin and Enviro are working together on a tire-recycling facility in Chile designed to recycle 30,000 metric tons of OTR tires a year.

Maude Portigliatti, executive vice president, high tech materials for Michelin, called the project 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," Portigliatti said.

SES Chairman Alf Blomqvist called the formation of the JV a "significant recognition of Enviro's technological and market leadership in recycling of tires. … (We) have found excellent partners to jointly accelerate our pan-European plant expansion and contribute to making the tire industry circular."