Michelin to setup world's first tyre recycling plant in Chile, confirms an investment of $30 million

Tyre manufacturer Michelin has started construction work of its first tyre recycling plant in Chile. This is being done in collaboration with Enviro, a Swedish company that has developed a patented technology to recover carbon black, oil, steel and gas from end-of-life tyres. The company mentions that will plant will be able to recycle 30,000 tons of earthmover tyres a year, or nearly 60 per cent of such tyres scrapped every year nationwide. While the work towards the building the plant will commence this year, the production will commence in 2023. Michelin confirms an investment of $30 million for building its new-generation tyre processing plant.

The scrap tyres will be collected directly from customer premises, then transported to the plant to be cut up and recycled. Enviro's technology, which produces new, high-quality reusable materials like carbon black, pyrolysis oil, gas and steel, will enable everything in an end-of-life tire to be recovered for reuse. Current plans call for 90 per cent of the recovered materials to be reused in a variety of rubber-based products, such as tyres, conveyor belts and anti-vibration products. The remaining 10 per cent will be reused directly by the plant to generate its own-use heat and power.

This initial recycling plant will enable Michelin to offer a comprehensive recycling solution, from collecting end-of-life tyres to reusing the recovered raw materials in the manufacture of new products.

"Thanks to this joint venture with Enviro, we are very proud to announce the construction of the Michelin Group's first recycling plant," said Sander Vermeulen, Vice President, Marketing & Business Development, Strategy and New Business for the High-Tech Materials business line. "This is a major milestone that will enable us to offer customers a new-generation recycling solution, while developing new business for the Group. We are currently in talks with several Chilean mining customers to sign long-term contracts. By scaling up Enviro's technology, we are offering them a solution that will support their environmental objectives and enables the development of a circular economy."