BACKGROUND
Changes in European regulations governing Electric Light Vehicles (ELVs) are accelerating the transition to circular plastics. As an automotive supplier, our client must align with this trend. However, it remains unclear how the company can leverage its expertise in materials engineering to create value and generate new revenue.
IAC was commissioned to determine how to transform this plastic expertise into a viable, competitive circular business model aligned with an existing partnership with a specialized recycling company.
THE IAC APPROACH
- Analysis of five circular economic models in the automotive industry—plastics and other materials—to identify the key success factors for circular models and partnerships,
- 15 expert interviews conducted with automotive industry stakeholders, plastics manufacturers, recycling experts, and consumer goods companies to gather qualitative and quantitative data on:
- plastic recycling,
- securing the deposits,
- the development of partnerships,
- customers' willingness to pay.
- Identification of three potential feedstock sources, including calculations of associated volumes and material costs—including a market study on the quantities and availability of targeted plastics at the European level,
- Comprehensive modeling of the recycling line to assess the total cost of processing: from the acquisition of the raw material to the qualification of the recycled compounds, including transportation, production, and qualification costs borne by our client.
RESULTS
A detailed model of the plastic recycling value chain, which distinguishes between competitive and non-competitive streams and estimates the revenue potential for our client.
3 prioritized sales channels, supported by benchmarks and interviews, including:
- their value sharing with partners,
- the addressable quantities,
- and the target customers.
