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Used Tyres Observatory - Annual Report - 2018 Data | PAGE 1/36

ANNUAL REPORT

TYRES

Used Tyres Observatory - Annual Report - 2018 Data | PAGE 2/36

QUOTATION OF THIS REPORT Deloitte Développement Durable, Véronique MONIER, Philippe KUCH, Otto KERN. In Extenso Innovation Croissance, Venice GRAF. ADEME, Karine FILMON, Sandra LE BASTARD. June 2020. Annual Report of the Used Tyres Observatory – 2018 Data - 36 pages. This document is available online at www.ademe.fr/mediatheque

This document is distributed by ADEME

20, avenue du Grésillé

BP 90406 | 49004 Angers Cedex 01

Contact no. : 1402C0024

Study performed by Deloitte Développement Durable for this project and financed by ADEME

Technical coordination - ADEME: FILMON Karine, LE BASTARD Sandra

Division of Circular Economy and Waste / Products and Material Efficiency Department

Any representation or reproduction in whole or in part without the consent of the author or his assignees or successors is illegal according to the Code of intellectual property (art.) L 122-4) and constitutes an infringement punishable under the penal Code. Only copies or reproductions are allowed (art. 122-5), strictly reserved for the private use of the copyist and not intended for collective use, along with analyses and short quotations justified by the critical, educational or information nature of the work in which they are incorporated, subject, however, to the provisions of articles L 122-10 à L 122-12 of the same Code relating to reprographic reproduction.

Used Tyres Observatory - Annual Report - 2018 Data | PAGE 3/36

TABLE OF CONTENTS

Table of contents ......................................................................................................................................................... 3

PART 1 - THE ESSENTIALS OF THE SECTOR .................................................................................................................... 4

1 The sector at a glance ....................................................................................................................................... 4

2 Regulatory context ........................................................................................................................................... 5

2.1 European regulatory framework .................................................................................................................................. 5

2.2 French regulatory framework....................................................................................................................................... 5

3 Organisation of the sector ................................................................................................................................ 7

4 2018 Data ......................................................................................................................................................... 8

4.1 Tyres placed on the market .......................................................................................................................................... 8 4.1.1 General market context..................................................................................................................................... 8

4.1.2 National data ................................................................................................................................................... 8

4.1.3 Focus by mode of organisation ........................................................................................................................ 10

4.2 Collection ................................................................................................................................................................... 11 4.2.1 National data ................................................................................................................................................. 11

4.2.2 Collection by tyre category .............................................................................................................................. 13

4.3 Treatment .................................................................................................................................................................. 14 4.3.1 Introduction .................................................................................................................................................... 14

4.3.2 National data ................................................................................................................................................. 15

4.3.3 Reuse ............................................................................................................................................................. 22

4.3.4 Recycling ........................................................................................................................................................ 23

4.3.5 Other forms of ELT recovery ............................................................................................................................ 23

5 Perspectives .................................................................................................................................................... 25

5.1 2018 overview of tyre sales in France ......................................................................................................................... 25

5.2 REGENION technology and Michelin's self-regenerating tyre ..................................................................................... 26

5.3 The Goodyear Oxygene Concept Tire ......................................................................................................................... 27

5.4 Rubber powder for road surfaces ............................................................................................................................... 28

5.5 Rubber powder for road coatings: French and European perspective ........................................................................ 29

PART 2 - ADDITIONAL REGULATION-RELATED ELEMENTS .......................................................................................... 31

Table of figures .......................................................................................................................................................... 34

Table of tables ........................................................................................................................................................... 34

Used Tyres Observatory - Annual Report - 2018 Data | PAGE 4/36

PART 1 - THE ESSENTIALS OF THE SECTOR

This first part of the report allows readers to discover the main information that governs the used tyre sector. It provides an overview of the regulations, the organisation of the sector and of the key figures for the 2018 data concerning the placement on the market, the collection and treatment of used tyres. This first part also lays out the sector's perspectives, with interviews with sector stakeholders.

1 THE SECTOR AT A GLANCE

Used tyre sector marketers must collect and process used tyres corresponding to 100% of the new tyres placed on the market during the year N-1.

Placement on the market:

More than 55 million tyres of all categories were placed on the market in 2018

+4.1% compared to 2017

Representing 550,051 tonnes placed on the market in 2018 +4.0% compared to 2017

Collection:

495,020 million tyres of all categories were collected in 2018 +7.3% compared to 2017

The national collection rate1 is 93.5% +1.6% compared to 2017

Treatment:

527,313 tonnes of used tyres of all categories were processed in 2018 +6.4% compared to 2017

The national processing rate2 is 99.7% +1.3% compared to 2017

ADEME provides data concerning the EPR sectors available for download on the website www.SINOE.org.

1 National collection rate (2018) = tonnage collected in year N (2018) / tonnage placed on the market in year N-1 (2017) 2 National processing rate (2018) = tonnage processed in year N (2018) / tonnage placed on the market in year N-1 (2017)

Used Tyres Observatory - Annual Report - 2018 Data | PAGE 5/36

2 REGULATORY CONTEXT

2.1 European regulatory framework

There are no Used Tyre (UT) sector-specific texts at the European level. Two general European directives, however, cover the subject of tyre waste and influence the sector (Figure 1).

Figure 1: European regulatory framework

These two directives, transposed into French law, frame the Used Tyres sector, with particular emphasis on the following elements:

Ban on landfilling of tyre waste;

Removal from waste status for recycled or recovered tyres;

Definition of collection and recovery objectives; and

Prioritisation of used tyre processing methods.

2.2 French regulatory framework

The decree of 18 August 2015 on the management of tyre waste renovates the regulatory system governing the sector of extended producer responsibility (EPR) for tyres. This decree entered into force on 1st October 2015. Decree No. 2002-1563 of 24 December 2002 established the regulatory framework under which the collection and processing of used tyres is organised in France. The operational implementation of the ERP sector dated back to 1st March 2004. The 2002 decree was repealed by decree no. 2007-1467 of 12 October 2007 relating to book V of the regulatory part of the environment code and amending certain other provisions of this code. In 2016, the decree of 30 December 2016 on the communication of information relating to management of tyre waste was published. The diagram below (Figure 2) presents the main texts governing the sector in France.

Used Tyres Observatory - Annual Report - 2018 Data | PAGE 6/36

Figure 2: French regulatory framework in 2018

Used Tyres Observatory - Annual Report - 2018 Data | PAGE 7/36

3 ORGANISATION OF THE SECTOR

The Used Tyre (UT) sector brings together many stakeholders involved throughout the life cycle, from tyre manufacturers and distributors to operators collecting and processing end-of-life tyres. These stakeholders are connected by physical flows, notably due to the regulation of the EPR sector (Figure 3).

Figure 3: Main stakeholders and flows in the Used Tyre sector

Used Tyres Observatory - Annual Report - 2018 Data | PAGE 8/36

4 2018 DATA

The use of declarations made in 2019 by producers, collectors and collective bodies (CB) for 2018 makes it possible to present the data on tyres placed on the market, their collection and treatment, and their evolutions.

4.1 Tyres placed on the market

More than 55 million tyres of all categories were placed on the market in 2018 (+4.1% compared to 2017)

i.e. 550,051 tonnes (+4.0%)

4.1.1 GENERAL MARKET CONTEXT

Globally, 2018 was marked by the fall of the market for the passenger and light truck tyre categories. Indeed, these segments experienced a 1% decline in original equipment, while their after-market sales increased by 1% due to solid demand in North America and Europe. The OE Heavy Goods Vehicle (HGV) market saw a very small increase of 2%, while the after-market in this segment declined by 1%. This decline is partly due to the 18% drop in the Chinese market for replacement tyres during the second quarter.3

The European automotive market fell by -1.9% in 2018, its first drop since 2012. Indeed, the new vehicle certification cycle has resulted in significant production stoppages in some European countries, including Germany. Moreover, the international context turned out to be complicated in 2018, with tensions linked to Brexit, threats to customs tariffs between the United States and China, then the drop in the Turkish car market linked to the depreciation of the Turkish lira.3

The French tyre market did, however, recover in 2018 (+4.8%) after stagnating in 2017, mainly due to the recovery activity for the passenger tyre segment (+3.9%). The increase in SUV and pick-up construction resulted in a significant increase in sales of dedicated tyres, rising by 12.0% (SUV) and 9.0% (vans). Moreover, the increase in the number of light vehicles assembled in France combined with the increase in household spending on car maintenance and repair also partly explain this recovery.3 In terms of sales however, the Light Vehicle (LV) tyre market recorded a drop in sales during 2018 (-3.1% compared to 2017), in particular due to the "yellow vest" crisis. Indeed, from November 2018, sales of passenger LV tyres fell sharply (-6.6%), then collapsed in December (-19%).4

4.1.2 NATIONAL DATA

The tables below show the tonnages and numbers of declared tyres placed on the market by tyre category, distinguishing between manufacturing and imports in 2017 and 2018:

3The tyre industry, Xerfi, June 2019. 4Interview with Régis Audugé, Director General of the Syndicat des Professionnels du Pneu (SPP)

Used Tyres Observatory - Annual Report - 2018 Data | PAGE 9/36

TYRE

CATEGORIES

2017 2018

TOTAL

CHANGE

RELATIVE TO

2017

Tonnages produced

(2017)

Tonnages imported

(2017)

Total tonnages placed on

the market (2017)

Tonnages produced

(2018)

Tonnages imported

(2018)

Total tonnages placed on

the market (2018)

MPLV5 229 462 158 333 387 795 232 011 172 046 404 057 + 4.2%

HGV6 73 967 33 883 107 850 75 103 34 436 109 539 +1.6%

AGRI-CE1-CE27

14 098 17 156 31 254 14 854 19 115 33 969 +8.7%

AP8 1 906 321 2 227 2 185 301 2 486 +11.6%

Total 319 432 209 693 529 126 324 153 225 898 550 051 +4.0%

Table 1: Summary of tonnages placed on the market in France by tyre category in 2017 and 2018

TYRE

CATEGORIES

2017 2018

TOTAL

CHANGE

RELATIVE TO

2017

Number of tyres

manufactured (2017)

Number of tyres

imported (2017)

Total number

placed on the market

(2017)

Number of tyres

manufactured (2018)

Number of tyres

imported (2018)

Total number

placed on the market

(2018)

MPLV 29 905 754 20 810 450 50 716 204 30 199 970 22 639 051 52 839 021 +4.2%

HGV 1 369 906 629 012 1 998 918 1 390 855 638 648 2 029 503 +1.5%

AGRI-GC1-GC2

105 046 159 700 264 746 111 271 179 680 290 951 +9.9%

AP 89 027 5 849 94 876 100 045 10 942 110 987 +17%

Total 31 469 733 21 605 011 53 074 744 31 802 141 23 468 321 55 270 462 +4.1%

Table 2: Summary of the number of tyres placed on the market in France by tyre category in 2017 and 2018

In 2018, the placement of tyres on the French market is characterised by:

- a relatively large increase in tyre tonnages (+4.0%)

- a significant increase in the number of tyres placed on the market (approximately 2.2 million additional tyres placed the market compared to 2017). In particular, MPLV tyres grew by 4.2% compared to 2017.

5MPLV = Mopeds and Light Vehicles 6HGV = Heavy Goods Vehicles 7AGRI CE1 CE2 = Agricultural tyres, civil engineering 1 tyres, civil engineering 2 tyres 8AP = Aeroplanes

Used Tyres Observatory - Annual Report - 2018 Data | PAGE 10/36

Figure 4 below illustrates the dynamism of the French market, with a 4.0% increase in tonnages of tyres placed on the market between 2017 and 2018.

Figure 4: Changes in tonnages of tyres placed on the market in France between 2014 and 2018

4.1.3 FOCUS BY MODE OF ORGANISATION

Aliapur and FRP are the two collective bodies (CBs) in charge of collecting and processing used tyres in mainland France on behalf of their members (producers). The two bodies cover 89.6% of the 550,051 tons placed on the market in 2018. The graph below shows the breakdown of tonnages placed on the market by mode of organisation.

Used Tyres Observatory - Annual Report - 2018 Data | PAGE 11/36

Figure 5: Breakdown of tonnages by mode of organisation in 2018

4.2 Collection

495,020 tons of tyres of all categories were collected in 2018

i.e. a 7.3% increase compared to 2017

4.2.1 NATIONAL DATA

There was an historic +7.3% increase in the collected used tyres that were declared in 2018. 2017 had seen a significant decrease, linked to the non-declaration of a collection company that usually accounts for large tonnages of UT (thus, the 2017 figure should be considered with caution because it does not reflect an equivalent reality).

Used Tyres Observatory - Annual Report - 2018 Data | PAGE 12/36

Figure 6: Change in tonnages of used tyres collected in France between 2014 and 2018

In 2018, the collection rate9 returned to a level nearly identical to that of 2014 (Table 3).

2014 COLLECTION

RATE 2015 COLLECTION

RATE 2016 COLLECTION

RATE 2017 COLLECTION

RATE 2018 COLLECTION

RATE

93% 95% 99% 92% 93.5%

Table 3: Collection rate of used tyres since 2014

Aliapur collected 7.5% more tyres compared to 2017 and FRP recorded in 2018 its highest level of annual collection since its incorporation in 2004.

This dynamic can be explained by several elements. On the one hand, the tyres collected from dismantlers are on the rise, increasing by 29.5% between 2017 and 2018. FRP notably carried out communication actions through regulation reminders during several conferences with dismantlers in addition to reminders sent by mail to stakeholders failing to comply with regulations (annual declaration not made on SYDEREP and payment of the eco-contribution). In particular, the DGPR (Directorate General for Risk Prevention at the Ministry) planned to carry out actions aimed at online sales websites, through which importers do not pay all the eco-contributions that are due according to the ERP, resulting in unfair competition with other stakeholders.

9Collection rate (year N) = quantities of tyres collected (year N) / quantities placed on the market (year N-1)

Used Tyres Observatory - Annual Report - 2018 Data | PAGE 13/36

4.2.2 COLLECTION BY TYRE CATEGORY

In 2018, tyre collection increased for all categories, with the exception of HGVs. Firstly, the collection of AGRI-CE1-CE2 tyres increased by 52.8%, i.e. an additional 12,038 tons collected compared to 2017. The collection of MPLV and AP tyres also increased, by 8.5% for MPLV and 11.7% for AP. The HGV category, on the other hand, suffered an 11.2% drop in collected volumes.

Figure 7: Change in collected tonnages of used tyres between 2017 and 2018 by tyre category

Used Tyres Observatory - Annual Report - 2018 Data | PAGE 14/36

4.3 Treatment

527,313 tonnes of used tyres of all categories were processed in 2018

i.e. a 6.4% increase compared to 2017

4.3.1 INTRODUCTION

Before analysing the results, we must remember that data from the Used Tyre Observatory considers three treatment families:

REUSE Used sales

Retreading, repair

RECYCLING Granulation, products derived from aggregates/crumb

Recovery in steel works or smelters

Drainage materials (ground materials, etc.): Water infiltration or retention basin, cover in non-hazardous waste storage facility, etc.

Material recovery in cement plants

OTHER FORMS OF RECOVERY

Other public works - civil engineering (avalanche dam, embankment support, etc.) and homogenates: Public works - Civil engineering

Energy recovery in cement plants

Other energy recovery (use as fuel, energy recovery, etc.)

Other: Other type of processing (silage, incineration, landfill, etc.), industrial boiler or collective boiler, vapothermolysis

Table 4: Processing families and types considered by the Observatory

Recovery in cement plants is divided between energy recovery and material recovery. Tyres are used as alternative fuels in cement plants, corresponding to energy recovery. Once in the cement kilns, the used tyres add material for the manufacture of cement, hence a proportion of material recovery. The following hypotheses for the distribution between these two recovery methods10 were considered:

10Hypotheses put forward by the Aliapur collective body, in the 2018 Aliapur annual report, and validated by the Ministry of Ecological and Inclusive Transition (MTES) concerning MPLV and HGV tyres.

Used Tyres Observatory - Annual Report - 2018 Data | PAGE 15/36

TYPE OF TYRES MATERIAL RECOVERY HYPOTHESIS

ENERGY RECOVERY HYPOTHESIS SOURCE

MPLV 22.85% 77.15% MTES11

HGV 25.84% 74.16% MTES

AGRI-GC1-GC2

25.84% 74.16% Deloitte hypothesis

AP 25.84% 74.16% Deloitte hypothesis

Table 5: Hypotheses for recovery distribution to cement plants (energy and material)

These hypotheses were used for the analysis of the treatment data in this chapter 4.3.

4.3.2 NATIONAL DATA 12

After a very strong increase in 2017 (+14.6% compared to 2016), the quantity of tyres processed continues to rise in 2018, with +6.4% compared to 2017. It has reached its highest level since 2014, and has exceeded the 520,000 tons of processed tyres.

11MTES: Ministry of ecological and inclusive transition 12The 2014, 2015, 2016, 2017 and 2018 data include the tonnage of tyres processed (reuse) by dismantlers.

Used Tyres Observatory - Annual Report - 2018 Data | PAGE 16/36

Figure 8: Progression of the tonnages of used tyres treated in France between 2014 and 2018

This strong increase in tyres processed between 2016 and 2017 is linked to the treatment of a large stock of tyres blocked in 2016 following customs problems. Indeed, around 30,000 tyres could not enter Morocco and were blocked at the port following regulatory changes in the country on the classification of used tyres. The 6.4% growth in processed tyres between 2017 and 2018 however remains significant. It stems from increases in the sales of tyres over the past five years and from the increase in collections in 2018.

YEAR MARKETING (TONS) TONS PROCESSED PROCESSING RATE

2016 503,823

2017 529,126 495,697 98.4%

2018 550,051 527,313 99.7%

Table 6: Processing rate13 of used tyres between 2017 and 2018

In 2018, the processing rate rose by +1.3% compared to 2017, thus remaining relatively stable between these two years.

13 Processing rate (year N) = quantities of tyres recovered (year N)/quantities placed on the market (year N-1)

Used Tyres Observatory - Annual Report - 2018 Data | PAGE 17/36

4.3.2.1 PROCESSING RATES BY TYPE OF STAKEHOLDER

The table below shows the processing rates by stakeholder type: various collective bodies and producers that have got individual systems. Tyres at dismantlers are not taken into account.

STAKEHOLDERS 2017 MARKETING IN TONS TONNAGES PROCESSED 2018

(TONNAGE PROCESSED 2017)

PROCESSING RATE 2018

(PROCESSING RATE 2017)

FRP 109 865 82 972

(51 036)

75.5%

(101%)

Aliapur 368 288 377 732

(382 532)

102.6 %

(110 %)

ARDAG 776 709

(560)

91.4%

(58%)

AVPUR 7 296 4 448

(5 572)

61.0 %

(77 %)

TDA PUNR 4 452 3 796

(3 645)

85.3%

(84 %)

Individual producers 38 450 36 106

(36 037)

93.9%

(98.6 %)

Table 7: Processing rate in 2018 by type of stakeholder

In overseas departments and regions, the changes in the processing rates of collective bodies in 2018 are as follows:

- The ARDAG processing rate increased sharply, with +57.6% between 2018 and 2017

- The TDA PUNR processing rate remained relatively stable, with +1.5% between 2017 and 2018

- The AVPUR rate, on the other hand, decreased by -21% between 2018 and 2017

As a general rule, the CBs in mainland France had higher processing rates than those in the overseas departments and regions:

- Aliapur's processing rate remains high, even though it decreased slightly compared to 2017 (-6.7%).

- FRP's processing rate dropped by -25.2%. This can be explained by the significant increase in tonnages placed on the market by the members of this CB in 2017. Moreover, the processing rates presented do not take into account the tyre tonnages from dismantlers, a historic activity for FRP in particular. Had this extended scope been taken into consideration, FRP's processing rate would be 88.3%.

Regarding individual producers, the situation is positive, with a rate of 93.9%. This can be partly explained by regular regulatory reminders undertaken by the government and ADEME, in particular concerning compliance. Nevertheless, this rate has decreased compared to the previous year, since individual producers have a similar tonnage of treated tyres while the tonnages of tyres placed on the market increase each year.

4.3.2.2 RESULTS BY TYPE OF TREATMENT

The following graph shows the distribution of tonnages processed by type of processing that occurred in 2018, all producers combined.

Used Tyres Observatory - Annual Report - 2018 Data | PAGE 18/36

Figure 9: Tonnages declared by producers by processing methods in 2018

The tonnages between 2017 and 2018 increased for almost all types of recoveries. Indeed, the tonnages increased for the steel works/smelter recovery category (+10%), the “draining material: infiltration or water retention basin” category (+ 61.2%) and the cement plant material recovery category (+4.9%), while tonnages fell for the “other energy recovery” category (-54%) and the public works, civil engineering category (-21.7%). Regarding granulation, there was a slight increase in the tonnages processed in 2018, compared to 2017 (+2.5%). For the first time in many years, retreading increased compared to 2017 (+9.4%).

The most widely used sector remains energy recovery in cement plants (with 41% in 2018) followed by granulation (20.4%) and second-hand sales (12.6%).

In 2018, the processing of MPLV and HGV tyres represented a total of 95.5% of all processed tyres compared to all tyre categories, while the marketing of these tyres represented a total of 93.3% in 2017.

In order to better understand what the treatment of used tyres represents, the Used Tyre Observatory relies on a life cycle analysis carried out by Aliapur in 2010 14 to reach equivalences illustrating tonnages recovered by type of processing. The equivalences by type of processing are listed below:

Granulation: 150 tonnes of end of life tyre (ELT) aggregates recovered are sufficient for the construction of one soccer field

Steel works: One ton of recovered ELT corresponds to the production of 0.59 t of anthracite and 0.16 t of scrap metal

Infiltration basins: One ton of recovered ELT corresponds to the production of 6 t of gravel15

14Life cycle analysis for 9 end of life tyre recovery channels, Aliapur, 2010. https://www.aliapur.fr/uploads/pdfs/acv-document-de-reference.pdf 15and sand mixture

Used Tyres Observatory - Annual Report - 2018 Data | PAGE 19/36

Cement plants: One ton of recovered ELT corresponds to the production of 0.7 t of coke and 0.29 t of coal.

The following table presents the equivalences for the UT processing methods of used tyres in 2018:

PROCESSING FAMILY PROCESSING TYPE TONS RECOVERED IN 2018 EQUIVALENCE

Recycling

Granulation 107 805 718 soccer fields

Steel works/Smelters 8 016 4,729 tons of anthracite and 1,282 tons of scrap metal

Infiltration or water retention basin for draining

materials

22 234 133,406 tons of gravel & sand mix

Other forms of recovery

Energy recovery in cement plants

216 187 151,331 tons of coke and 62,694

tons of coal

Table 8: Substituted tonnages thanks to ELT recovery in 2018

Aliapur has also developed a calculator for the recovery of used tyres providing “meaningful” equivalences in terms of savings in natural resources and environmental impacts16. One recycled LV tyre is equivalent to the cumulative saving of:

- The daily electricity consumption of 41 refrigerators

- The water consumption of 4 washing machine cycles

- The CO2 emissions of 119 kilometres travelled by car

There are 152,994 tonnes of recycled MPLV tyres, i.e. more than 20 million MPLV tyres. This equals to the cumulative saving of:

- The daily electricity consumption of approximately 830 million refrigerators

- The water consumption of approximately 81 million washing machine cycles

- The CO2 emissions of 2.4 billion km travelled by car

4.3.2.3 TYRE PROCESSING IN FRANCE AND EXPORT OF USED TYRES (REUSABLE TYRES AND ELTS)

Of the 527,313 tons of tyres processed in 2018, 55% were processed in France (i.e. 292,335 tons) and 45% abroad. There was a 7% drop in tonnages processed in France compared to 2017 (-15,708 tons) and, consequently, a proportional increase in exports.

It should also be noted that collectors declare the first destination of the tyres and, in the case of wholesalers, it is difficult for the UT Observatory to determine the final destination of tyres processed for reuse. The compiled data on tonnages processed for reuse for export may therefore be underestimated.

UTs are exported to and processed in the following geographic areas:

16 https://www.aliapur.fr/fr/rd-innovations/environnement/calculateur-environnemental

Used Tyres Observatory - Annual Report - 2018 Data | PAGE 20/36

- Africa17, with 114,782 tons of tyres processed in 2018, a +34% increase over 2017. This strong increase is linked to the growth in exports of used tyres to Morocco and Tunisia, for fuel use in the cement industry18. Sales of second hand tyres are also growing in Africa.

- Western Europe, with 67,925 tons of tyres processed in 2018, a 15% decrease compared to 2017. Indeed, French tyre sector professionals are developing their exports to Africa, in order to diversify the ways in which used tyres are recovered, and to not depend on any specific channel or partner19.

- Asia20, with 51,656 tons processed in 2018, i.e. a +138% increase compared to 2017). Aliapur also has recovery units in South Korea, to which the collective body shipped containers of used tyres in 2018.

17Benin, Cameroon, Ivory Coast, Egypt, Gabon, Guinea, Morocco, Mauritania, Nigeria, Tunisia, Turkey and Togo. 18 https://www.actu-environnement.com/ae/news/dechets-pneumatiques-aliapur-valorisation-matier-cimentiers-maroc-2016-28940.php4 192018 Activity Report, Aliapur 20 South Korea, India, Japan, Pakistan.

Used Tyres Observatory - Annual Report - 2018 Data | PAGE 21/36

The table below presents the tonnages in France and exported by geographic area and by type of processing in 2018:

PROCESSING

FAMILY PROCESSING TYPE FRANCE WESTERN

EUROPE CENTRAL

EUROPE AFRICA AMERICA

(EXCLUDIN

G

OVERSEAS

DEPARTME

NTS AND

REGIONS)

ASIA

Reuse Second hand 65 765 267 0 497 105 0

Retreading 17 566 519 510 0 0 0

Recycling Granulation 52 138 39 560 0 0 0 16 107

Steel works/Smelters 7 028 988 0 0 0 0

Infiltration or water retention basin for draining materials 22 234 0 0 0 0 0

Material recovery in cement plants 26 229 4 981 0 26 846 0 7 258

Other forms of recovery

Public works, civil engineering 10 871 1 607 0 0 0 0

Energy recovery in cement plants 88 140 16 418 0 87 440 0 24 189

Other energy recovery 97 0 0 0 0 0

Other21 2 268 3 584 0 0 0 4 102

Total 292 335 67 925 510 114 782 105 51 656

Table 9: Tonnages exported by geographic area and by type of processing in 2018

21 Other = vapothermolysis, industrial boiler or collective boiler, sorting centre, preparation platform (grinding or shredding) , and other recovery method.

Used Tyres Observatory - Annual Report - 2018 Data | PAGE 22/36

4.3.3 REUSE

Reuse is the preferred mode when ranking processing methods. It includes the second-hand, retreading and repair (Reusable Used Tyres, RUT) markets.

The sector observed significant increases for the second hand (+8.2%) and retreading (+9.4%) markets for 2018 compared to 2017. In terms of reuse, the second hand market (78.2% of tonnages) is favoured over the retreading market (21.2% of tonnages).

It is important to note that the data from the UT Observatory does not take into account nominative retreading, which is mainly used for HGV tyres in particular. The figures and explanations below relate only to tyres with a waste status.

Figure 10: Progression of tonnages reused in 2017 and 2018

In total, 2018 was marked by the increase in reuse of used tyres (+8.4% compared to 2017).

According to Nadia Zennache22 from FRP however, retreading criteria were tightened in 2018. HGV tyres are the most frequently retreaded, and can be retreaded several times. These retreaded tyres, however, are facing increasing competition from new low-cost tyres from abroad.

The market, however, remains resilient in France. Indeed, 99.7% of tyre tonnages sent for reuse and retreading are processed in France.

22Interview with Nadia Zennache, Key Account Manager, France Recyclage Pneumatiques

Used Tyres Observatory - Annual Report - 2018 Data | PAGE 23/36

4.3.4 RECYCLING

Recycling is the second preferred processing mode in the hierarchy of processing methods. It includes material recovery in the cement industry for reusable used tyres. It includes the conversion of end-of-life tyres to:

- Aggregates for the production of moulded parts, sports floors, play areas, draining material, etc.

- Homogenates for use in steel works/smelters (recovery of carbon to replace anthracite)

- Rubber crumbs for use in an infiltration or water retention basin for draining materials

The processing of used tyres is dominated by the manufacture of aggregates, used for the applications mentioned above, followed by material recovery in cement plants.

Figure 11: Change in recycled tonnages in 2017 and 2018

All in all, 2018 was marked by the increase in all recycling sectors. The most significant increase concerns recovery as draining materials for water infiltration basins (+61.2% compared to 2017). Indeed, the collective body FRP alone reported an increase in recycling to draining material by +8.5% in 201823.

The slight increase for granulation (+2.5% between 2017 and 2018) is linked to the controversies around this recovery process, particularly regarding the use of aggregates for synthetic soccer fields. Finally, the increase in material recovery in cement plants is directly correlated to the increase in tyres sent to the cement plant for energy recovery.

4.3.5 OTHER FORMS OF ELT RECOVERY

The other processing methods concern energy recovery (fuels in cement plants, industrial boilers or other energy recovery), recovery for public works (civil engineering), steam thermolysis and other types of recovery. The energy

23FRP Activity Report, 2018

Used Tyres Observatory - Annual Report - 2018 Data | PAGE 24/36

recovery channel in cement plants is still the most widely used processing method for used tyres (41%) followed by energy recovery for public works (2.4%) and the "industrial boilers or collective boiler rooms" channel (1.2%).

Figure 12: Changes to other recovery methods in 2017 and 2018

Used Tyres Observatory - Annual Report - 2018 Data | PAGE 25/36

5 PERSPECTIVES

5.1 2018 overview of tyre sales in France

An interview was conducted with Régis Audugé, Managing Director of the Syndicat des Professionnels du Pneu (SPP, tyre professionals union). We take a look at the market over the past year for tyre sales and the establishment of a provisional anti-dumping procedure that taxes manufacturers of single-life tyres from China.

INTERVIEW WITH RÉGIS AUDUGÉ, MANAGING DIRECTOR OF THE SYNDICAT DES PROFESSIONNELS DU PNEU (SPP)

What is your assessment of tyre sales in France in 2018? What were the most important tyre sales categories in 2018? What were the highlights?

The LV or TC4 tyre market recorded a drop in sales during 2018 (-3.1% compared to 2017). The yellow vests crisis seriously affected the activity of the centres: in fact from November 2018 sales of light vehicle tyres had seriously decreased (-6.6%) then collapsed during December 2018 (-19%). These unprecedented declines due to the social crisis in the country at the end of 2018 contributed to displaying a negative annual trend.

It should be noted that the demand for 4X4 tyres continued to increase (+5.4% over 2017) due in particular to the growing share of SUVs in the French motor vehicle fleet and a to trend among manufacturers to equip new vehicle models with large tyres.

Also note a drop in van tyre sales (-5% compared to 2017). Since 2015, van tyre volumes have been in decline. This may be due to a phenomenon of marginal transfer of sales to the Internet channel (online sales platforms). This is not taken into account in our panel for technical reasons.

HGV tyres (+6.8% compared to 2017) and retreads (+6.1% compared to 2017) increased in 2018. This is primarily due to the good economic health of the road transport sector, and to the anti-dumping measures taken by the European Commission. This latter imposed increases in customs duties on single-life products from China, thus encouraging the sale of retreaded tyres.

Which region/country did imports mainly come from?

Imports from outside the European Union arrive mostly from Asia and more specifically from China. However, we do not have precise assessments of entries into France. Indeed, the entries recorded in other EU countries (the Netherlands in particular) are considered as intra-European exchanges when they cross the French border.

What was the reaction of the market in 2018 following the announcement made by the European Commission on the establishment of a provisional anti-dumping procedure, aiming at taxing manufacturers of Asian single-life tyres? Does the European Union still plan to increase customs duties on these products?

This tax (from 25 to 50%), imposed on several Chinese manufacturers of single-life tyres, helped to curb imports. Some manufacturers, however, have already moved some of their industrial activities to neighbouring countries not affected by these anti-dumping measures. Time will allow us to judge whether these are effective in the long term.

Did new imported tyres become more expensive in 2018?

We have no specific data on the price of imported tyres. Overall, the average price of new HGV tyres increased non-significantly in 2018 (+0.9% on average). It is important to remember that the average price of new HGV tyres started to fall from 2013, then stabilised from 2016. 2018 was the first year in which the price of new tyres increased. Perhaps we can see this as an effect of the taxes imposed on Chinese manufacturers by the European Commission.

How do you see the tyre market in 2019? What are the trends?

In 2019, two factors should have an influence on sales.

For LV tyres, we recorded a postponement of sales from December 2018, which failed to materialise in January 2019. This made it possible to start the year on a very favourable trend (+15.7% in January).

A decree on winter tyre regulations should be promulgated. It should make it compulsory to equip light and heavy vehicles with winter tyres or all-season tyres (with the 3PMSF or M + S marking) in mountain areas between 1st

Used Tyres Observatory - Annual Report - 2018 Data | PAGE 26/36

November and 31 March. This decree should be applicable from 2019. Logically, this measure should have an impact on sales.

The UT Observatory presents the sector's prospects through four interviews on innovative technologies for the tyre industry and for the management of used tyres.

5.2 REGENION technology and Michelin's self-regenerating tyre

The UT Observatory was able to talk with Agnès Poulbot and Philippe Gervais from Michelin about REGENION technology and the self-regenerating tyre.

INTERVIEW WITH AGNÈS POULBOT, RESEARCHER AND CO-INVENTOR OF REGENION TECHNOLOGY, AND PHILIPPE GERVAIS, TRUCK & BUS

EUROPE PRE-DEVELOPMENT DIRECTOR

Could you present the history and beginnings of this project?

Research on REGENION technology began in 2007 as part of a project aimed at reducing fuel consumption. This technology was patented in 2009. Michelin's self-regenerating tyre uses REGENION technology, and was released to the market in 2013, following five full years of research and development.

Michelin continued its projects around this technology following this initial phase of R&D, notably through the PEGASE project (Eco-efficient Large Road Lightweight Safe and Economic tyre) between 2014 and 2019, in partnership with ADEME.

In 2018, Agnès Poulbot and Jacques Barraud (now deceased), behind this invention, won the European inventor award in the industry category. Agnès Poulbot was also elected “Woman of the Year 2019” in the automotive category by the WAVE association (Women And Vehicles in Europe).

Can you describe the self-regenerating tyre (composition, manufacture, etc.)?

REGENION technology is a tread design technology. Indeed, the treads, that is to say the recesses that we observe on the surface of the tyres, are essential to guarantee the grip of the tyre on the road and allow it to evacuate water in the event of rain or water on the road.

REGENION technology requires innovative moulds, obtained through metal 3D printing, used to form the tyre treads. The self-regenerating tyre has a network of recesses distributed over the entire height of the tread. As the tyre wears, hidden recesses in new condition will appear, allowing the tyre to continue to evacuate water throughout its service life. These evolving treads ensure that there is always a minimum recess volume to store and evacuate water, guaranteeing optimum grip and greatly limiting tread deformation, in turn reducing fuel consumption.

The REGENION self-regenerating tyre can be used for different Michelin tyre ranges, and adapts to all the materials used. It performs very well for heavy goods vehicles and buses, which have thick treads. Light vehicles use tyres with thinner treads, for which the REGENION technology is less well-suited and exploitable.

Are there significant manufacturing constraints for the production of REGENION tyres?

Apart from the development via 3D metal printing of the moulds required for the treads, the manufacture of the self-regenerating tyre remains conventional, with the same materials.

What are the main advantages of the self-regenerating tyre in terms of economics, technical performance and sustainable development?

The use of self-regenerating tyres saves one litre of fuel per 100 km travelled for a fully equipped truck. If we consider a truck travelling 100,000 km per year, this represents a saving of 1,000 litres of fuel, and avoids the emission of 3 tons of CO2 per year. For comparison, if all heavy goods vehicles in Europe were fitted with self-regenerating tyres, the CO2 emissions avoided would be equal to those of the city of Paris for one month.

Moreover, the lifespan of the self-regenerating tyre is on average 15 to 20% higher than that of the traditional tyre, while preserving the technical performance of the tyre, in particular its grip on wet ground.

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What is the commercial development status of the self-regenerating tyre? When do you expect the REGENION tyre to be brought to market?

The self-regenerating tyre is already available on the market, and 170,000 tyres of this type were sold in 2017. Michelin plans to sell 1 million in 2019, representing 20% of Michelin's heavy goods vehicle tyre sales in Europe, then 2 million in 2022.

Will this new technology change the methods of processing the tyre once it becomes used?

Once worn, the self-regenerating tyre can be recovered in the same way as conventional tyres, and there are no processing constraints for self-regenerating tyres. These tyres can also be retreaded.

Has this technology received a favourable response from the tyre industry and consumers?

The technology received a very positive response from industry and consumers, illustrated by an increase in sales of self-regenerating tyres. Other tyre manufacturers are currently making efforts to develop similar technologies.

5.3 The Goodyear Oxygene Concept Tire

The UT Observatory was able to talk with Sébastien Fontaine and Claude Boes of Goodyear, concerning the Oxygene concept tyre presented at the Geneva Motor Show in 2018. This innovative tyre brings together a set of technologies, and incorporates natural moss to carry out photosynthesis and produce energy.

INTERVIEW WITH SÉBASTIEN FONTAINE, SENIOR INDUSTRIAL DESIGNER, AND CLAUDE BOES, PRINCIPAL ENGINEER AT THE GOODYEAR

INNOVATION CENTRE

What is underlying concept of the Oxygene tyre?

The Oxygene concept tyre combines several innovative technologies in a single device.

Firstly, it allows the CO2 naturally present in the air to be captured and the oxygen to be released thanks to photosynthesis, carried out by moss plants present in the tyre. Liquid water and water vapour reach the moss through the tyre tread.

The Oxygene tyre is also a connected tyre. Oxygene uses LiFi (Light Fidelity) technology to communicate and transmit information to road infrastructures (lampposts, etc.) and nearby vehicles. Indeed, LiFi allows information to be exchanged over a direct optical line, using the energy produced via photosynthesis. The tyre can thus detect a malformation of the road, for example, and inform nearby vehicles.

Moreover, the Oxygene tyre is fitted with LEDs, which also use photosynthetic energy, used to communicate with pedestrians. These LEDs are inserted into a light ring located on the outer surface of the tyre. This ring lights up in different colours and at different frequencies to communicate with pedestrians, on stopping, steering, braking or starting the vehicle for example.

Can you describe the structure and composition of the Oxygene tyre?

The Oxygene tyre is made up of several parts. The Oxygene's tread is its non-pneumatic structure and it is manufactured by 3D printing from powdered recycled tyres. Since this tyre does not need a sealed inner tube, its tread is also dotted with holes, which let in the water and moisture necessary for photosynthesis. Air (including CO2) is exchanged through small holes in the transparent cover, which protects the moss and lets in the sun's rays, which are also necessary for the photosynthesis process.

An internal support structure supports the moss, which grows within the tyre. Moss was selected for photosynthesis thanks to its excellent robustness and adaptation properties: it tolerates drought well, along with changes in temperature and light. Moreover, the transparent cover on the surface of the tyre protects the moss, in particular from road salting in winter.

Two electrodes inserted into the roots of the moss recover the electricity produced indirectly by photosynthesis. Indeed, the sugars produced by photosynthesis are consumed by bacteria present on the roots of plants; this metabolism releases electrons that generate an electric current. Although very low, only a few mW, these currents

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are sufficient to make the tyre energy-independent. Indeed, the moss in one Oxygene tyre can produce around 14 mW on average.

What types of vehicles will the Oxygene tyre be suitable for?

The Oxygene tyre is part of a medium-term future, in the era of autonomous and electric vehicles in car sharing mode. The many features of the Oxygene tyre mean that the vehicles onto which it is fitted must be specially designed to adapt to this tyre.

Does this technology change the service life of the tyre?

The service life of an Oxygene tyre is considerably longer than a conventional tyre. Indeed, a conventional tyre rolls on average 50,000 to 60,000 km before being worn. The Oxygene tyre can travel between 500,000 and 600,000 km before needing to be changed, a service life multiplied by 10. This increase is partly due to a usable tread of 30 mm compared to 7 mm on a standard tyre, combined with an autonomous vehicle which only drives in urban areas and would be programmed to considerably reduce all types of wear such as avoiding all sudden acceleration and braking and to take an optimised trajectory when cornering. This increase in the tyre's service life goes hand in hand with its usage objectives. Indeed, this tyre fits into the era of autonomous and shared vehicles, which in principle will roll much more than current vehicles, which serve a few hours a day. The Oxygene tyre will be able to roll 95% of the time, and a longer service life is thus necessary to avoid overly frequent replacements and to considerably reduce the costs of use for car-sharing fleets.

What are the environmental benefits of the Oxygene tyre?

There are approximately 2.5 million vehicles in Paris and the Paris region. If all these vehicles were fitted with Oxygene tyres, this would absorb approximately 4,000 tons of CO2, and generate 3,000 tons of oxygen each year.

Has Goodyear planned any specific processing methods for Oxygene tyres once used?

All the components of the Oxygene are recyclable and reusable, including the internal support structure and the moss. The Oxygene tyre is not intended to be retreaded. It is not composed of a sandwich-type carcass made of different materials. The design and variable density material, which makes up its free-standing structure, is produced in one piece. Thus, the traditional methods of processing used tyres are expanded for the Oxygene tyre.

What is the current stage of development of this technology? Can we imagine a commercialisation in the coming years?

The Oxygene concept tyre was presented at the 2018 Geneva Motor Show. There are no short-term plans for marketing the Oxygene tyre yet because the technologies and materials used for its production are not mature enough yet. Goodyear will therefore be able to use this concept once the market is more suitable for this technology. Until then, individual elements of the Oxygene concept will appear in other forms, gradually, as technologies become sufficiently mature.

Nevertheless, the technologies discussed are part of Goodyear's environmental philosophy, especially the increase in eco-responsible resources as detailed in its 2018 Corporate Responsibility Report.

The Oxygene tyre has already won three awards: the "Best Green Concept" award at Tire Cologne, the automotive industry award at the "Automotive Innovations" awards, and finally the "Golden Award" at the 2018 AutoMoto Innovation Award.

5.4 Rubber powder for road surfaces

The UT Observatory was able to speak with Barry Takallou, head of the North American granulation company CRM Rubber. Mr. Takallou is a recognised expert on the use of rubber powder for road coatings. Through this focus, he presents the broad outlines of this technology, along with the advantages it presents.

INTERVIEW WITH BARRY TAKALLOU, PRESIDENT AND CEO OF CRM RUBBER

What is a conventional road coating made of?

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Bituminous road coatings (also referred to as "asphalt" in North America) contain aggregates and liquid bitumen, which serves as a binder for hot-mix coatings. The recycled rubber can be incorporated into the bitumen.

Traditional bitumen is highly sensitive to temperature changes. In fact, during heat waves (+40 °C), bitumen can "bleed", i.e. become very smooth, impairing vehicle braking. When it is too cold (-20 °C) on the other hand, the bitumen becomes very hard and compact, and can crack. Adding rubber powder makes liquid bitumen less sensitive to temperature variations and extreme temperatures. It also improves the elasticity properties of the coating, contributing to the longevity of the road.

In bituminous road coatings, the balance achieved between the aggregate and bitumen fractions is paramount. Indeed, liquid bitumen serves as a binder, holding the aggregates together. It is also important to ensure that a balanced mixture between bitumen and aggregates is achieved, to avoid the risk of bleeding. Similarly, if there is not enough bitumen, an "erosion" or tearing phenomenon occurs, and whole particles can detach from the coating. In the long run, this can lead to roadway malformations and to the formation of potholes for example.

How does the addition of rubber affect the composition of the road coating?

The conventional composition of a road coating is approximately 5.5% liquid bitumen, and 94.5% aggregate, to avoid any risk of bleeding or road erosion.

Adding rubber powder to the bitumen increases the binding portion of the road coating. Indeed, the binder fraction (here bitumen) can increase from 5.5% to 7.5%, while that of aggregates used decreases from 94.5% to 92.5%.

What is polymer-modified bitumen? What are the technical and economic differences between a bitumen containing rubber powder and a bitumen containing polymers?

The use of polymers in bitumen in Europe has been very widespread for many years. Between 2% and 6% of SBS or SBR are added to liquid bitumen to improve their physical properties. Bitumen containing polymers has better resistance to high temperatures, unlike bitumen containing rubber powder which is effective in both extreme hot and cold temperatures.

From an economic standpoint, SBS or SBR bitumen is 10 times more expensive than rubber. Thus, the use of rubber powder instead of polymers would result in significant savings for road construction.

Moreover, from an environmental point of view, the addition of rubber increases the fraction of binder in the road coating and reduces the need for aggregates, thus preserving a natural resource and limiting the environmental and carbon footprint of the coating.

To what degree is this technology currently deployed?

The technology for incorporating rubber powder into bitumen is already widely used in the United States, and California has been using this technology for about 30 years, for example. Based on economic and technical results, the State has developed public policies for the use of this material within its roads.

The effectiveness and results of this (non-patented) technology are therefore proven. It currently represents a real opportunity for European countries, which could deploy it and develop standards and guidelines for its use based on existing knowledge.

5.5 Rubber powder for road coatings: French and European perspective

The UT Observatory spoke with Jean-Philippe Faure, Director of Research and Development at Aliapur. This latter gave a European perspective concerning this technology.

INTERVIEW WITH JEAN-PHILIPPE FAURE, DIRECTOR OF RESEARCH AND DEVELOPMENT AT ALIAPUR

Can you explain the process and value of incorporating rubber powder into road surfaces?

Currently, a significant number of roads use a polymer, SBS (styrene-butadiene-styrene), in bitumen to improve its properties. This polymer is expensive however, costing between 1000 and 2000 Euros per ton, with significant price variability. Rubber powder can replace SBS, while guaranteeing the same bitumen quality improvement properties.

What are the technological, economic and environmental benefits of this technology?

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Rubber powder integration gives more flexibility to the bitumen, along with better resistance to cracking and rutting (deformation of the pavement). Moreover, rubber powder is much cheaper than SBS. From an environmental standpoint, the use of this powder obtained from used tyres contributes to the recycling of these materials, and thus to the circular economy.

What is the difference between "dry" and "wet" incorporation of rubber powder into bitumen?

Wet incorporation involves mixing the bitumen and recycled rubber powder before placing the mixture on the road. This method is currently the most widespread. Dry incorporation consists in substituting a small portion of the gravel used for road coatings with recycled rubber, without mixing the materials beforehand. To date, few data are available on dry incorporation.

A postgraduate thesis is currently under way on dry incorporation, in partnership with Aliapur, ADEME and Eiffage. This thesis is being conducted at the ENTPE, the school of sustainable land use.

Are you aware of any other European countries interested in developing this technology? And internationally...?

For the moment, Spain and Italy are the two European countries that have shown the most interest in this technology. In Spain, Signus, Aliapur's Spanish counterpart, supports this technology, especially as the country enjoys a regulatory framework favourable to the incorporation of recycled rubber into roads. A guide to good practices was also published in 2007 in Spain, on the technical aspects of incorporating rubber powder into bitumen.

In the United States, the technology is already present and used on the roads of some states. According to USTMA (United States Tire Manufacturers Association) data, the use of rubber powder on roads accounted for approximately 3% of the recovery of used tyres nationally in 2017.

At present, are there any elements hindering the adoption and deployment of this technology? What do you think could accelerate the development of this technology?

At present, we need to improve the image and perception of this technology, in order to convince industrialists of its potential. The State or ADEME support could also be beneficial to this application, for example by supporting materials from "green" public procurement schemes.

Technology has already proven its worth in technical terms, but the economic gains it would bring to manufacturers (considered weak) could limit its adoption, especially since not all of these stakeholders have the right equipment to use this product.

Finally, as observed during an experiment in Sweden, this bitumen is not necessarily suitable for all types of tyres, like the studded tyres that are used in very cold regions and on freezing roads for example.

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PART 2 - ADDITIONAL REGULATION-RELATED ELEMENTS

The table below presents the European regulations governing the used tyre industry.

Table 10: Description of the European regulatory framework for used tyres

The following table presents the French regulatory texts that govern the used tyre industry.

EUROPEAN TEXT SCOPE CONTENT (NOT EXHAUSTIVE) TRANSPOSITION INTO

FRENCH LAW

Directive 1999/31/EC of 26 April 1999 on the landfill of waste

This Directive applies to all types of waste and therefore covers used tyres in particular

No used tyres have been allowed in landfill since 16 July 2006, with the exception of bicycle tyres and those with an outer diameter greater than 1,400 mm

Decree No. 2002-1563 of 24 December 2002

Directive 2008/98/EC of 19 November 2008 on waste (Waste Framework Directive)

This Directive applies to all types of waste and therefore covers used tyres in particular

Exit from waste status, in case of recovery or recycling, to become a product. if several general and cumulative conditions are met

Setting a 100% implied collection and recovery target

Ranking of treatment methods:

o Prevention;

o Reuse (second hand and retreading market);

o Recycling (in the form of homogenates, aggregates and crumbs in applications such as moulded parts, sports floors, playgrounds, etc., or use in steel mills and smelters);

o Energy recovery (use as fuel or incineration with energy recovery);

o Recovery for public works (use for public, civil engineering or backfilling work); and

o Other types of recovery.

Ordinance No. 2010-1579 of 17 December 2010

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TEXT SCOPE CONTENT (NOT EXHAUSTIVE)

Article L.541-10-8 of the Environment Code

(article amended by Act no. 2014-856 on the Social and Solidarity Economy (Article 89))

Used tyres Presentation and organisation of the tyre ERP sector

Article L.541-2 of the Environment code

Used tyres Manufacturers are responsible for the waste produced and are therefore required to ensure its disposal (collection, transport, storage, sorting and processing).

Articles R.543-137 to R.543-152 of the Environment Code (Codification of Decree No. 2002-1563 of 24 December 2002, then articles amended by Article 23 of Decree No. 2011-828 of 11 July 2011 and By Decree No. 2015-1003 of 18 August 2015)

Management of used tyres

The technical and financial responsibility for the collection and processing of end-of-life tyres rests with producers or importers of new tyres, within the limits of the tonnages placed on the market the previous year.

Collectors and tyre waste processing facility operators must be accredited by department prefects.

Distributors and holders must hand over tyre waste to approved collectors in accordance with Article R. 543-14

The landfilling of used tyres is prohibited under directive 1999/31/EC of 26 April 1999.

Article R.543-158-1 of the Environment code

(Provision under Decree No. 2011-153 of 4 February 2011)

Used tyre collection from dismantlers

Car manufacturers arrange the collection and priority processing of used tyres from end-of-life vehicles at authorised dismantlers to the extent of their obligations under tyre waste regulations. This scheme has been fully operational since June 2011.

Order of 15 December 2015 on the objectives assigned to individual systems

provided for in article L.541-10-8 of the Environment Code

Management of used tyres

The order determines the general duties for manufacturers who have set up an individual tyre waste management system and sets out the various objectives they must meet in this area.

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TEXT SCOPE CONTENT (NOT EXHAUSTIVE)

Order of 15 December 2015 on the collection tyre waste in Article L. 541-10-8 of the Environment Code

Collection of used tyres

The order determines the tyre waste collector accreditation procedure employed by the prefect. In particular, it defines the content of the application for approval, the specifications that collectors must meet and the minimum conditions for the collection of tyre waste.

Order of 15 December 2015 on the objectives assigned to eco-organisations

provided for in article L.541-10-8 of the Environment Code

Eco-organisations of the tyre waste sector

The order determines the general duties of the tyre waste management sector eco-organisations24 and defines the various objectives they must achieve in the context of their activities.

Order of 30 December 2016 on the disclosure of information relating to the management of tyre waste under Article L. 543-150 of the Environmental Code

Annual declaration to ADEME

Marketers communicate information on their tyre marketing and how tyres are collected and treated individually or through the eco-organisation to which they adhere.

Accredited collectors indicate the quantities of tyre waste collected per holder, category and department.

The processing family is no longer required. Manufacturers indicate their processing facility(ies) and have direct access to all processing categories.

The following tyre categories have been combined for collection and processing declarations:

- Moped and Light Vehicle

- Agricultural, civil engineering 1, civil engineering 2

The order also defines the tracking indicators that ADEME must monitor from the transmission of this information and provides for the annual report that it draws up on the management of the tyre waste sector.

Table 11: Description of the French regulatory framework on used tyre

24From 1st January 2020

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TABLE OF FIGURES

Figure 1: European regulatory framework ................................................................................................................................. 5

Figure 2: French regulatory framework in 2018 ......................................................................................................................... 6

Figure 3: Main stakeholders and flows in the Used Tyre sector ................................................................................................... 7

Figure 4: Changes in tonnages of tyres placed on the market in France between 2014 and 2018 ............................................... 10

Figure 5: Breakdown of tonnages by mode of organisation in 2018 .......................................................................................... 11

Figure 6: Change in tonnages of used tyres collected in France between 2014 and 2018 ........................................................... 12

Figure 7: Change in collected tonnages of used tyres between 2017 and 2018 by tyre category ................................................ 13

Figure 8: Progression of the tonnages of used tyres treated in France between 2014 and 2018 ................................................. 16

Figure 9: Tonnages declared by producers by processing methods in 2018 ............................................................................... 18

Figure 10: Progression of tonnages reused in 2017 and 2018 ................................................................................................... 22

Figure 11: Change in recycled tonnages in 2017 and 2018 ....................................................................................................... 23

Figure 12: Changes to other recovery methods in 2017 and 2018 ............................................................................................. 24

TABLE OF TABLES

Table 1: Summary of tonnages placed on the market in France by tyre category in 2017 and 2018 ............................................. 9

Table 2: Summary of the number of tyres placed on the market in France by tyre category in 2017 and 2018 ............................. 9

Table 3: Collection rate of used tyres since 2014 ...................................................................................................................... 12

Table 4: Processing families and types considered by the Observatory ..................................................................................... 14

Table 5: Hypotheses for recovery distribution to cement plants (energy and material) .............................................................. 15

Table 6: Processing rate of used tyres between 2017 and 2018 ................................................................................................ 16

Table 7: Processing rate in 2018 by type of stakeholder ........................................................................................................... 17

Table 8: Substituted tonnages thanks to ELT recovery in 2018 .................................................................................................. 19

Table 9: Tonnages exported by geographic area and by type of processing in 2018 .................................................................. 21

Table 10: Description of the European regulatory framework for used tyres ............................................................................. 31

Table 11: Description of the French regulatory framework on used tyre ................................................................................... 33

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ADEME IN A NUTSHELL

At ADEME - the Ecological Transition Agency - we are resolutely

committed to the fight against global warming and the degradation

of resources.

On all fronts, we are mobilising citizens, economic stakeholders and

regions, giving them the means to progress towards a resource-

efficient, more low-carbon, fairer and more harmonious society.

In all fields - energy, air, circular economy, food waste, waste, soil,

etc. - we advise, facilitate and help finance numerous projects, from

research to the sharing of solutions.

We make our expertise and prospective capabilities available to

public policies, at all levels.

ADEME is a public establishment under the supervision of the

Ministry of Ecological and Inclusive Transition and the Ministry of

Higher Education, Research and Innovation.

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ANNUAL REPORT OF THE USED TYRES OBSERVATORY

2018 DATA

This report gives a state of the art of the used tyres sector in France in 2018 on the basis of evidence gathered by the used tyres observatory, supplemented by elements of qualitative analyses from stakeholders of the sector.

A single website named SYDEREP (SYstème DEclaratif des filières REP) collates all Registers and Observatories from Waste Electrical and Electronic Equipement (WEEE), Batteries, Fluorinated Gasses (FG), Used Tyres (UT), Packaging items, End-of-Life Vehicles (ELV) and Waste Furnishings (WF).

More than 55 million tyres of all categories were placed on the market in 2018, representing 550,051 tonnes placed on the market in 2018. In 2018, the national collection rate is 93.5% and the processing rate is 99.7%.

www.ademe.fr