UPDATE: Renault Forms Auto Recycling Venture With Suez Unit
Thursday February 21st, 2008 / 19h45
(Updates with details of the joint venture) By David Pearson Of DOW JONES NEWSWIRES PARIS -(Dow Jones)- French auto maker Renault SA (13190.FR) said Thursday it is setting up a joint venture to recycle vehicles with Sita. Sita is a unit of Suez Environment, a division of France's Suez (SZE.FR) group specialized in waste management services and water supply. The 50-50 joint venture will take control of Indra Investissements, a privately-held French company with a network of 200 vehicle dismantling operations throughout France. Renault and Sita plan to invest EUR100 million over five years in the venture, and will initially own 80% of Indra, rising to 100% after the five-year period. Company executives said in a press conference that they want to cash in on the fast-growing market for end of life vehicle treatment, a sector whose potential has been enhanced by the steady rise prices of raw materials such as plastics and steel. Under the European Union's ELV directive, 95% of a vehicle's mass must be capable of being recycled by 2015, compared to 85% at present. Renault's Laguna, a mid-sized family sedan that was launched last autumn, uses 17% recycled plastics. Final terms of the three-way agreement will be settled by April. -By David Pearson, Dow Jones Newswires; +331 4017 1740; david.pearson@dowjones.com
