TURIN, Italy (Reuters) – Stellantis’ revenue target for its recycling and reconditioning unit will be raised after growing 25% so far this year, the group’s Chief Executive Carlos Tavares said on Thursday inaugurating its first hub for the business.
As part of its long-term business plan, the Franco-Italian group has said it aimed to generate 2 billion euros ($2.2 billion) in revenue by 2030 from its “circular economy” unit, by recycling and extending the life of parts and materials.
“The growth is strong,” Tavares said, adding the potential for the business would have to be revised up, although he did not provide details about the new target.
“What we are building here is a profitable business,” he said.
Located in the Mirafiori complex, in Turin, the new circular economy hub focuses on life extension for parts and vehicles, component reconditioning as well as recycling materials to return to the manufacturing loop.
The site, for which Stellantis has invested 40 million euros, currently employs 170 highly-trained employees, projected to rise to around 550 people by 2025.
($1 = 0.9168 euros)
(Reporting by Giulio Piovaccari; editing by David Evans)
