Stellantis Opens Its Maiden Circular Economy Hub in Turin, Italy

24 Nov, 2023

Stellantis Opens Its Maiden Circular Economy Hub in Turin, Italy

Stellantis N.V. marked the official opening of its SUSTAINera Circular Economy Hub (CE Hub) at the Mirafiori Complex in Turin, Italy, signaling the company's robust commitment to advancing circular economy initiatives. The hub embodies a comprehensive strategy called the 4R approach: Reman, Repair, Reuse, and Recycle, pivotal to Stellantis' circular economy ambitions.

The primary goal of this cutting-edge Circular Economy Hub is to prolong the lifespan of both parts and vehicles, ensuring their longevity. When parts or vehicles reach the end of their use, materials are gathered for recycling, closing the loop by integrating them back into the manufacturing process to create new vehicles and parts. Initially, the CE Hub hosts four key activities implementing the 4R strategy, with plans for further expansion:

Remanufacturing (Reman): Components like engines, gearboxes, and EV batteries are refurbished to original OEM specifications, creating sustainable alternatives available under the SUSTAINera label. The facility anticipates managing over 50,000 remanufactured parts by 2025, increasing to 150,000 by 2030.
Sorting Center (Reman, Recycle): An estimated 2.5 million worn parts will supply the hub's remanufacturing and recycling activities by 2025, escalating to 8 million by 2030.
Vehicle Reconditioning (Repair, Reman, Reuse): Vehicles undergo aesthetic and mechanical repairs using new, remanufactured, or used parts, reintroduced through Stellantis' used-vehicle program and sales network.
Vehicle Dismantling (Recycle, Reman, Reuse): End-of-life vehicles become a resource for remanufacturing, reusing parts, or recycling materials.

This high-performance CE Hub aims to optimize efficiencies and synergies among activities, integrating materials and processes.

Stellantis is strategically developing its capabilities, teams, and facilities to revolutionize its consumption model, establishing an integrated ecosystem to reduce environmental impact and achieve a carbon-neutral status by 2038.

The inauguration witnessed the presence of Stellantis Chairman John Elkann and CEO Carlos Tavares, emphasizing the company's dedication to Italy and its workforce. Tavares highlighted, "We are industrializing the recovery and sustainable reuse of materials, building new technologies and advanced capabilities as we grow in this area."

Chairman John Elkann expressed, "The Circular Economy Hub is a testament to our commitment to Italy's automotive evolution and community renewal."

The investment of €40 million in this circular economy initiative has led to the CE Hub occupying 73,000 sq. meters, with 55,000 sq. meters recovered from an underutilized facility. Over 5,000 tons of obsolete assets' metal were recycled, and machinery was repurposed, achieving a 55% cost saving compared to new purchases. The site presently employs 170 upskilled individuals, with projections to reach around 550 employees by 2025.

Moreover, the Circular Economy Hub complements Stellantis' global electrification initiatives and carbon-neutral goals, fostering partnerships and initiatives across various sectors, including EV battery recycling and strategic alliances for raw materials and gigafactories across continents.

The Stellantis Circular Economy Business Unit, a key segment in the Dare Forward 2030 strategic plan, aims to generate over €2 billion in revenues by 2030.