PARIS (Agefi-Dow Jones)–The Renault group announced on Thursday the creation of an entity dedicated to the circular economy bringing together most of its vehicle conversion and raw material recycling activities for the automotive industry in France.
This new entity called “The Future is Neutral” aims for a turnover of more than 2.3 billion euros and an operating margin of more than 10% by 2030, the manufacturer said in a press release.
It brings together several existing companies: Gaia, a subsidiary dedicated to the recovery of end-of-life vehicles and the reuse of batteries, as well as Indra and Boone Comenor, two joint ventures between Renault and the Suez group.
“‘The Future Is Neutral’ is the first company to operate across the entire value chain of the automotive circular economy, and addressing all players in the automotive world, beyond Renault Group”, said underlined the manufacturer, who wishes in particular to associate the automotive equipment manufacturers.
Renault plans to open a minority share in the capital of this entity to outside investors in order to co-finance its investments, estimated at 500 million euros by 2030.
Closed loop recycling
While a vehicle is made up of 85% recyclable materials, according to the group, new vehicles only contain 20% to 30%. Renault wants to advance “closed-loop recycling” in order to reduce the consumption of raw materials in industry.
“No one is better placed than the Renault group to embark on this path. With more than 10 years of experience in the circular economy, we are recognized as a pioneer and a leader”, commented the CEO of Renault, Luca de Meo, during a press conference.
The group intends to develop most of these activities in its “Re-factory” in Flins, in the Yvelines, which “will serve as an industrial base, a customer but also a service provider for ‘The Future is Neutral'”, according to Luca of Meo.
On Tuesday, its rival Stellantis said it was aiming for more than 2 billion euros in revenue per year in circular economy activities by 2030.
-Francois Schott, Agefi-Dow Jones; 01 41 27 47 92; [email protected] ed: ECH
Agefi-Dow Jones The financial newswire
Dow Jones Newswires
October 13, 2022 09:37 ET (13:37 GMT)