By Redação AutoIndústria | Translated by Jorge Meditsch
The Renault Group is creating a new business unit dedicated to the circular economy in the automotive sector chain. The new company aims to increase the use of recycled materials from the automotive industry in the production of new vehicles.
According to the company, new vehicles are made up of only 20 to 30% of recycled material, from all industries, despite being made of around 85% recyclable materials. For the group there is an underestimated potential able to generate business, as well as promote technologic growth.
The unit will assist all sector manufacturers, not only Renault Group brands. To accelerate its development The Future Is NEUTRAL is opening up a minority of its capital to outside investors with a view to obtain investments of around €500 million until 2030.
The new unit has the participation of Renault’s subsidiaries Gaia, Indra and Boone Comenor, (dedicated to collection, parts reycling and vehicle treatment after their life cycle), as well as the Refactory located in Flins, France, Renault’s electric vehicles home.
“This unit mission is to expand its activities with ambitious strategic plans and new market perspectives, offering closed-loop recycling solutions, i.e. from car to car to an automotive industry facing the climate challenge, new regulatory requirements and increasing pressure on natural resources”, said in a note Luca de Meo, CEO of the Renault Group.
The new company aims to reach a turnover of more than €2,3 billion and an operating margin of more than 10% by 2030 through its activities portfolio.
Photograph: Renault
