Circular Manufacturing: When Industrial Waste Becomes a Resource

What if industrial waste could become a source of materials, components and new production opportunities?

Across Europe, manufacturers are exploring ways to recover valuable resources, extend equipment lifespans and bring used materials back into production.

Yet the potential remains considerable. According to Eurostat, recycled materials accounted for just 12.2% of all materials used in the EU in 2024.

Circular manufacturing aims to make better use of resources throughout the industrial lifecycle, from product design and production to repair, remanufacturing and recycling.

Two recent industrial examples show how these principles are being put into practice.

Renault: extending the life of components and production equipment

At its former vehicle assembly plant in Flins, France, Renault Group has developed the Refactory, an industrial site dedicated to circular mobility.

Rather than focusing solely on recycling, the facility brings together vehicle refurbishment, component remanufacturing, battery repair and material recovery.

In 2025, 350,000 automotive parts were remanufactured at the site, while 3,000 electric and hybrid vehicle batteries were reconditioned, according to Renault Group.

Circularity also extends to the factory's own production equipment. More than 150 industrial robots were retrofitted in 2025 before returning to manufacturing lines.

These activities illustrate an important aspect of circular manufacturing: keeping existing products and equipment in use can be just as relevant as recovering raw materials.

For manufacturers, this approach raises practical questions about maintenance, component design, repairability and the economic value of extending an asset's working life.

From used tyres to new industrial materials

Circular manufacturing can also involve several companies working together across a production chain.

In July 2026, Pirelli, Pyrum, Synthos and BASF announced a European collaboration designed to recover materials from end-of-life and scrap tyres and reintroduce them into tyre manufacturing.

The process involves several complementary industrial activities.

Pyrum converts used tyres into recovered carbon black and tyre pyrolysis oil. The recovered carbon black is upgraded for use in Pirelli's European production, partially replacing virgin material.

Meanwhile, BASF uses the pyrolysis oil as part of its chemical production process. Through a certified mass-balance approach, the resulting materials contribute to synthetic rubber manufactured by Synthos and subsequently used by Pirelli.

The project demonstrates how material recovery can involve recycling specialists, chemical producers and manufacturers working within the same value chain.

It also highlights the importance of material quality, traceability and cooperation when recycled feedstocks are introduced into demanding industrial applications.

Why circular manufacturing matters for industrial supply chains

Circular manufacturing is not simply a question of reducing waste. It also changes how companies source materials, manage equipment and organise production.

Recovering metals, polymers and other materials can provide alternative sources of industrial feedstock. Repairing or remanufacturing components can extend their useful life, while refurbishing production equipment may reduce the need for replacement.

These opportunities depend on technical feasibility, material quality, processing costs and the availability of suitable recovery systems.

At European level, the EU Circular Economy Action Plan includes an objective to increase the circular material use rate to 23.2% by 2030, twice its 2020 reference level.

Turning circular principles into industrial practice

For manufacturers, the starting point is often a practical question: where is value being lost?

Production scrap might be recovered and reused. Components could be designed for easier repair. Existing machinery may be suitable for refurbishment rather than replacement.

Not every material can be recycled indefinitely, and circular processes must meet the same quality and performance requirements as conventional manufacturing.

Nevertheless, the examples of Renault and the tyre industry show how circular approaches can be integrated into established industrial operations.

Circular manufacturing is ultimately about retaining value in materials, products and production equipment for longer.

From advanced materials to manufacturing processes and industrial equipment, these questions are part of the wider industrial ecosystem brought together at Global Industrie 2027, from 15 to 18 March at Eurexpo Lyon.