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Part of Forvia Group, the largest supplier to the automotive industry in France, Materi’act’s JV with PCR Recycling aims to accelerate the development and delivery of recycled compounds.

Stephen Moore

February 16, 2024

2 Min Read
joint venture
Image courtesy of Forvia

At a Glance

  • Deal is expected to help spark demand in North America for use of recycled plastics in automotive and other industries
  • Compounds with up to 85% CO2 reduction will be offered by 2030
  • Applications include a range of automotive products such as instrument and door panels

France’s Materi’act is setting up a joint venture in Dallas, TX, with PCR Recycling to accelerate the development and delivery of recycled compounds for sustainable automotive parts with up to 85% CO2 reduction by 2030. Materi’act is part of the Forvia group, France’s first- and the world’s seventh-largest automotive technology supplier. Tier I Faurecia is a sister company.

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The mission of the joint venture — Materi’act Dallas — is to secure a local, long-term feedstock of post-consumer recycled plastics and to produce recycled polymers to meet the growing needs of the automotive industry in North America. The newly formed company will collect feedstocks and recycle, refine, formulate, and compound the recycled polymers to meet carmakers’ stringent requirements. 

The joint-venture combines the strength of each parent company: PCR Recycling brings its capacities in feedstock access and recycling, while Materi’act contributes its expertise in refining, adaptative formulations, compounding, and post-processing capabilities. 

The deal is expected to help spark demand in North America for use of recycled plastics in automotive and other industries. Applications include a range of automotive products, such as instrument and door panels, center consoles, and any other automotive products where plastic is commonly used. In addition, customers in various non-automotive industries are expected to benefit from the joint venture’s sustainable materials and recycling solutions. 

“We are impressed with Forvia’s approach to sustainable material development, where any preconceived notions about recycled feedstock have been removed — the Materi’act team has focused on a fresh approach, from the bottom up,” said Wojtek Zarzycki, CEO of PCR Recycling. “The future company will balance experience and entrepreneurship. It is the convergence of these attributes and the opportunities in the North American automotive sector that make PCR Recycling excited about our new path together.”

“We are on a mission to redefine the way the automotive industry sources the materials used in vehicles as part of our global commitment to CO2 neutrality,” said Rémi Daudin, President of Materi’act. “As part of this mission, we are bringing our proven business model for developing alternative materials for the automotive industry to North America at a time when there is a growing demand from our customers for sustainable products that have a lower impact on the environment.”

About the Author(s)

Stephen Moore

Stephen has been with PlasticsToday and its preceding publications Modern Plastics and Injection Molding since 1992, throughout this time based in the Asia Pacific region, including stints in Japan, Australia, and his current location Singapore. His current beat focuses on automotive. Stephen is an avid folding bicycle rider, often taking his bike on overseas business trips, and a proud dachshund owner.

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