Stellantis’ US$43.5m first circular economy hub in Turin

Leading automaker Stellantis is furthering its sustainability efforts by opening its first circular economy hub as part of its comprehensive plan to foster its Circular Economy ambitions with a 360-degree approach based on the 4R strategy: Reman, Repair, Reuse, and Recycle.

The SUSTAINera Circular Economy Hub (CE Hub) at the Mirafiori Complex in Turin, Italy aims to extend the life of parts and vehicles, ensuring that they last for as long as possible. When that is no longer possible, the material is collected for recycling from the remanufacturing activity, and from the end-of-life vehicle dismantling activity, and then returned to the manufacturing loop to build new vehicles and parts. 

The US$43.5m, 73,000 sq. metre facility plays a major role in Stellantis’ target of becoming a carbon net zero corporation by 2038 and targets to employ 550 people by 2025.

“The Circular Economy Hub brings together a powerhouse of skills and activities aimed at creating a high-performing centre of excellence in Europe,” says Carlos Tavares, Stellantis CEO. 

Prior to leading the creation of Stellantis in January 2021, Tavares was Chairman of the PSA Managing Board from March 2014, having joined the PSA Managing Board in January 2014, and Chief Operating Officer of Renault from 2011 to 2013.

“We are industrialising the recovery and sustainable reuse of materials, building new technologies and advanced capabilities as we grow in this area. We know that our commitment to remanufacturing, repairing, reusing and recycling will not only take pressure off our planet, but it will also bring financial value to Stellantis, safeguarding our shared future as we quickly transform our production and consumption business model.”

The Circular Economy Hub 

The hub is currently on track to four activities under the 4R strategy — Reman, Repair, Reuse, and Recycle — with the scope set to expand further:

Remanufacturing (Reman) — Used, worn, or defective components, such as engines, gearboxes and EV batteries are disassembled, cleaned, and remanufactured to original OEM specifications, without compromising quality. The goal is to offer a sustainable and affordable alternative available under the SUSTAINera label within the Stellantis spare parts offer. The facility expects to manage over 50,000 remanufactured parts by 2025, rising to 150,000 by 2030.

Sorting Center (Reman, Recycle) — An estimated 2.5 million worn parts, known as cores, will supply the facility’s remanufacturing and recycling activities by 2025, increasing to 8 million by 2030.

Vehicle Reconditioning (Repair, Reman, and Reuse) — Vehicles will be repaired aesthetically and mechanically using new, remanufactured or used parts and then reintroduced through SPOTiCAR, Stellantis’ manufacturer-certified used-vehicle program, and the Stellantis &You, Sales and Services network.

Vehicle Dismantling (Recycle, Reman, and Reuse) — At the end of their life cycle, vehicles become a resource for parts to be remanufactured, reused or as material for recycling. 

“This additional investment of our company here in Turin demonstrates the commitment of Stellantis to Italy in the context of the evolution of our industry, and also the ability of our communities to renew themselves by building their future,” shares John Elkann, Stellantis Chairman.

Elkann took post as Executive Director of Stellantis in January 2021, and Chairman on January 17, 2021. Previously, he served as Chairman and Executive Director of FCA, Chairman of Fiat S.p.A., and he is currently also Chief Executive Officer of Exor N.V.

“When all stakeholders and Stellantis share the same ambition and agree on a common path, ideas become reality, and the Circular Economy Hub we inaugurate today is proof of this. It will be a blueprint plant in the automotive sector that combines environmental respect with economic development.”

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