Italian rubber recycler adding capacity, expanding markets

MILAN—Rubber Conversion s.r.l., a rubber recycling firm that converts end-of-life products into pre-consumer product raw materials, has received a $2.8 million capital investment toward expanded capacity and increased business markets.

The 2017 startup announced the funding March 29. The money comes from venture capitalist firms CDP Venture Capital SGR through its Evolution Fund; Liftt, chaired by scientist and entrepreneur Stefano Buono; and a group of angel investors, according to Rubber Conversion.

"We are very pleased with the positive closing of this financing round," said Francesco di Pierro, co-founder of Rubber Conversion. "Which confirms our vision of becoming an important player enabling even more sustainable strategies for rubber sector through material design and production waste management.

"Thanks to the new capital boost, we will strengthen production capacity, implement new business models and grow in new markets, further evolving our technology, developing our product range and strengthening our team."

Originating in Verona, Italy, Rubber Conversion uses a patented devulcanization technique on end-of-life tires and other rubber products to reproduce mixtures that have a lower environmental impact on the pre-production end.

"Rubber Conversion technology represents an innovation (of) best practice, both in terms of environmental sustainability and of raw material costs optimization, which is highly critical nowadays," said Enrico Resmini, CEO and general manager of CDP Venture Capital. "Contributing to the growth of this sector of Italian excellence in the circular economy, in line with the ESG parameters, gives us reasons to be exceptionally satisfied."

Rubber Conversion partners with Innovando, an Italian firm that works in sustainable industrial waste management, in developing product management programs and alternative fuel options.

With the European rubber market expanding at a high rate, current production waste from rubber processing exceeds 150 thousand tons.

"For some time, we have identified Rubber Conversion's offer (as) huge potential," said Giovanni Tesoriere, CEO of Liftt. "In fact, its innovative proprietary technological solutions fit perfectly into a fundamental trajectory for the near future economy: the production cycle circularity and raw materials reuse, at a time when the latter ones are starting to become increasingly scarce and, therefore, increasingly expensive. This is a business idea based on sustainability and lowering environmental impact that coincides precisely with our vision and our principle that economic development cannot and must not overlook the immediate context."

Rubber Conversion has received numerous industry awards in its sustainability pursuits, and is partnering with Bridgestone and Stellantis on a related green devulcanization project.