Genan expands in Germany with tire recycling acquisition

Viborg, Denmark – Genan has agreed to acquire a tire recycling plant in Weiden, Germany, from (Auto-Teile-Unger) ATU Group as part of a strategy to strengthen its position in Europe and expand into Central and Eastern European markets.

The mechanical recycling facility in southeastern Germany has a capacity to process 45 kilotonnes per annum (ktpa) of end-of-life tires annually, said Genan in a 24 June statement.

The transaction also includes a long-term supply agreement covering used tires collected through ATU's workshop network.

The acquisition marks the latest expansion by Genan, which operates six tire recycling plants in Denmark, Germany, Portugal and the US with combined annual capacity exceeding 400ktpa.

“Throughout the last decade, Genan has shown positive development,” said group CEO Poul Steen Rasmussen.

“We are now ready to take the next step, and the acquisition in Germany is in line with our strategy to focus on the areas where we see the greatest long-term potential.”

With this acquisition, Genan expects to strengthen its market presence as well as gain access to “some highly attractive markets” in Central and Eastern Europe.

“At the same time, we will secure access to substantial volumes of end-of-life tires by entering into a long-term partnership with a strong partner like ATU,” said Rasmussen.

Genan plans to invest a ‘double-digit million euro’ sum to modernise the Weiden facility over the next year.

“In Europe, there is a large number of old factories with considerable development potential,” Rasmussen said. “We can contribute with our state-of-the-art technology and industrialisation know-how.”