Home > Business > Scandinavian Enviro Systems, Antin Infra form JV supported by Michelin for large-scale tyre recycling

Scandinavian Enviro Systems, Antin Infra form JV supported by Michelin for large-scale tyre recycling


PARIS, MAR 30, 2023

Sweden-based Scandinavian Enviro Systems and London-based private equity fund Antin Infrastructure Partners have formed a joint venture supported by Michelin to create is the world’s first large-scale tyre 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 tyres with Michelin’s leading position in sustainable tyres and Antin’s expertise in developing and scaling 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, which also includes delivery of recovered carbon black and tyre 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 percent. As part of the JV, Enviro’s patented technology will be licensed to the JV on an exclusive basis throughout Europe.

The first full-scale commercial plant will be built in Uddevalla, Sweden, with initial capacity to recycle 34,500 tonne of disposed tyres, equal to 40 percent of the annual volume of end-of-life-tyres in Sweden. The 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.

 “I am very proud and pleased withtoday’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,” said Alf Blomqvist, Chairman of Enviro.

Antin Infrastructure Partners’ NextGen Partners Anand Jagannathan and Rodolphe Brumm said: “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.”

 “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,” said Maude Portigliatti, Executive Vice President, High Tech Materials – Member of the Group Executive Committee at Michelin.

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