Sustainable Mobility: Faurecia & Veolia to Pioneer in the Use of Recycled Plastics in Automotive Interiors

Rhea-AI Summary

Faurecia and Veolia have signed a Cooperation and Research Agreement to develop automotive interior modules with 30% recycled materials by 2025. This initiative aims to address the automotive industry's challenge of incorporating recycled plastics, crucial for reducing CO2 emissions. Veolia will produce these secondary raw materials at its French recycling sites starting in 2023. The partnership will enhance sustainable interior solutions in Europe, leveraging both companies' expertise in materials and recycling.

Positive

• Collaboration targets 30% recycled content in automotive interiors by 2025, promoting sustainability.
• Accelerated development time-to-market due to combined technological expertise.
• Veolia's expansion in automotive product offerings, enhancing its market presence.

Negative

• Dependence on recycled materials may face supply challenges or higher costs.
• Target of 30% recycled content may be ambitious, risking non-fulfillment.

• A pioneering cooperation to address the challenge of developing recycled materials to achieve an average of 30% of recycled plastics for the automotive interior modules by 2025.

• An accelerated time-to-market and development thanks to the technological know-how and industrial capacities of both partners.

PARIS--(BUSINESS WIRE)-- Regulatory News:

Faurecia, company of the Group FORVIA, and Veolia (Paris:VIE) have signed a Cooperation and Research Agreement to jointly develop innovative compounds for automotive interior modules, aiming to achieve an average of 30% of recycled content by 2025. Through this partnership, the two companies will accelerate the deployment of breakthrough sustainable interiors solutions implemented in instrument panels, door panels and center consoles in Europe. Veolia will start the production of these secondary raw materials at its existing recycling sites in France starting from 2023.

The use of recycled plastics is one of the key challenges for the ecological transformation of the automotive industry as it plays an important role in reducing CO2 emissions and improving the environmental performance of the car. Today, automotive interiors are mostly made of virgin material.

The strategic partnership will leverage the companies’ complementary competencies across sustainable compound formulations, stringent automotive architecture requirements, sourcing and innovative treatment of industrial and post-consumer plastic waste.

A leading player in recycling, Veolia has been providing polypropylene compounds to the automotive industry in France for over 5 years. This collaboration project with Faurecia will allow Veolia to expand its automotive product range to vehicle interiors.

In 2011, Faurecia was the first automotive supplier to introduce a complete range of bio-composite cockpit solutions with NAFILean ®. More than a decade later and in around 13 million vehicles, these products’ CO2 footprint is 28% lower than that of conventional all-plastic counterparts.

Patrick Koller, Chief Executive Officer at Faurecia, said: “As an automotive supplier with an industry-leading portfolio in sustainable materials, we are uniquely positioned to provide innovative solutions to carmakers and their customers. By combining our innovation and industrial forces with Veolia, we will accelerate the introduction of breakthrough sustainable materials and their time-to-market, as well as contributing to reducing plastic waste and strengthening the circular economy. This agreement will also strongly contribute to Faurecia’s roadmap towards CO₂ neutrality for scope 3, based on the principles of using less, using better and using longer.”

“As demand for recycled plastic increases across all sectors in the context of resource scarcity, there is a need to recycle more plastic waste streams. The collaboration with Faurecia allows us to increase our supply of secondary raw materials to the automotive industry through the development of high value-added compounds. These sustainable interior solutions will also be a strong contributor to sustainable mobility, which is at the heart of the ecological transformation ”, explains Estelle Brachlianoff, Group Chief Operating Officer at Veolia. “Active alongside the entire recycling value chain, Veolia is growing its plastic recycling capacities with continuous investment in the industrialisation and expansion of our existing recycling sites in France and globally, with the objective to reach 1 billion € turnover by 2025 ''.

In line with the Group’s ambitious CO₂ neutrality objectives, Faurecia created a cross-Business Group Sustainable Materials division in 2021 to develop and manufacture cutting-edge materials. This division aims to offer a complete low-CO₂ cockpit and even CO₂ negative materials, in order to support OEMs’ sustainability objectives.

About Faurecia

Faurecia, company of the Group FORVIA, is a global automotive technology leader.
With 257 industrial sites, 39 R&D centers and 111,000 employees in 33 countries, Faurecia operates through four areas of business: Seating, Interiors, Clarion Electronics and Clean Mobility.
In 2021, the Group reported total turnover of €15.6 billion.
Faurecia is listed on the Euronext Paris market and is a component of the CAC Next 20 index.
www.faurecia.com

About FORVIA

FORVIA, the world’s seventh largest automotive technology player, comprises the complementary technology and industrial strengths of Faurecia and HELLA.
With over 300 industrial sites and 66 R&D centers, 150,000 people, including more than 35,000 engineers across 40+ countries, FORVIA provides a unique and comprehensive approach to the automotive challenges of today and tomorrow.
Composed of 6 business groups with 24 product lines, FORVIA is focused on becoming the preferred innovation and integration partner for OEMs worldwide. The Group provides solutions for a safe, sustainable, advanced and customized mobility,
FORVIA aims to be a change maker committed to foreseeing and making the mobility transformation happen.
www.forvia.com

About Veolia

Veolia group aims to be the benchmark company for ecological transformation. With nearly 179,000 employees worldwide, the Group designs and provides game-changing solutions that are both useful and practical for water, waste and energy management. Through its three complementary business activities, Veolia helps to develop access to resources, preserve available resources, and replenish them. In 2021, the Veolia group provided 79 million inhabitants with drinking water and 61 million with sanitation, produced nearly 48 million megawatt hours and recovered 48 million tonnes of waste. Veolia Environnement (Paris Euronext: VIE) achieved consolidated revenue of 28,508 billion euros in 2021. www.veolia.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20220503005999/en/

Contacts Veolia Group

Media Relations Veolia

Laurent Obadia - Evgeniya Mazalova

Emilie Dupas - Mathilde Bouchoux

+ 33 6 27 45 11 38 / +33 6 88 42 97 27

presse.groupe@veolia.com

Investors Relations Veolia

Ronald Wasylec - Ariane de Lamaze

+33 1 85 57 84 76 / 84 80

investor-relations@veolia.com

Contacts Faurecia

Media Relations Faurecia

Youssara Id Chrife

Tél: +33 (0)6 15 58 40 62

youssara.idchrife@forvia.com

Investors Relations Faurecia

Marc Maillet - Matthieu Fernandez

Tel: +33 (0)1 72 36 75 70 / Tel: +33 (0)6 22 02 01 54

Source: Veolia Environnement

FAQ

What is the goal of the Faurecia and Veolia partnership concerning recycled materials?

The partnership aims to achieve an average of 30% recycled content in automotive interior modules by 2025.

When will Veolia start producing secondary raw materials for automotive interiors?

Veolia will start production at its existing recycling sites in France beginning in 2023.

How does this cooperation impact CO2 emissions in the automotive industry?

The collaboration aims to reduce CO2 emissions by incorporating recycled plastics, which improves the environmental performance of vehicles.

What key strengths do Faurecia and Veolia bring to this partnership?

Faurecia offers expertise in sustainable materials, while Veolia brings advanced recycling capabilities and experience in producing polypropylene compounds.

What is Veolia's revenue target related to plastic recycling by 2025?

Veolia aims to reach a turnover of €1 billion from its recycling operations by 2025.