The circular economy is emerging as a key competitive factor for Germany as an industrial hub. A recent study by the Boston Consulting Group (BCG) commissioned by the Federation of German Industries (BDI) concludes that circular business models could massively increase industrial value creation in Germany by 2045. According to the study, circular gross value added could more than double from around 60 billion euros today to up to 125 billion euros per year. Cumulatively, this results in an additional value-added potential of up to 880 billion euros.
The study makes it clear that the circular economy not only bolsters climate protection, but also enhances security of supply, the resilience of supply chains and Germany’s industrial competitiveness. The focus is particularly on recycling, reuse and extending product life cycles.
AZuR Tyre Recycling Scheme: A Practical Model for Success
The tyre recycling industry already provides a working example of the circular economy in practice. In Germany alone, around 50 million end-of-life tyres are generated every year. Many of these could be used for significantly longer through professional repair, regrooving and retreading, before ultimately being kept in the recycling loop through mechanical recovery.
The Alliance for the Future of Tyres (AZuR), of which NEW LIFE is a member, is committed to ensuring that as close to 100 per cent as possible of tyres and their raw materials remain in the circular economy across Europe. The aim: to prevent waste, reduce COâ‚‚ emissions, conserve natural resources and secure valuable secondary raw materials for industry.
Current figures illustrate just how great this potential is: in Germany, around half of the used tyres generated each year are already being kept in the circular economy. At the same time, the tyre circular economy brings significant environmental and economic benefits – from saving fossil raw materials to reducing dependence on imports.
Conserving resources and combating climate change through extended use. Tyres that can no longer be retreaded can be mechanically recycled into steel wire, textile fabric and, above all, rubber granulate. This produces valuable secondary raw materials for industry, the construction sector and new tyre products.
The tyre and recycling industry can play a key role in the circular economy
The findings of the BCG/BDI study thus also confirm the approach taken by NEW LIFE and AZuR: a functioning circular economy is created through the collaboration of industry, small and medium-sized enterprises, academia, the recycling sector and innovative technologies. The latest study findings clearly show that the circular economy is no longer merely a matter of environmental policy, but a crucial driver of growth for Germany’s future as an industrial hub. The tyre and recycling sector can play a key role in this.