The Belgian SME was launched in August 2019, started from the ambition of a well-known company in towing activities based in the region of Liège, active in the local sale of used vehicle and second-hand parts. The latter identified the necessity to consolidate its activities through the integration of the missing step of depollution and dismantling of ELV to grow in the automotive second-hand parts business.
The idea came from an observation in terms of vertical integration: a missing link between the vehicles towing and repair process and the second-hand parts market. This missing part consists of the elimination of hazardous waste and the recovery of metals and parts in a transparent quality framework. This initiative is supported by an innovative operational model not present in Wallonia, integrated into the rationales defended by the circular economy (recycling and reuse beyond valuation).
In Wallonia, ca 30 centres authorized by FEBELAUTO exist for the decontamination / depollution of end-of-life vehicles. FEBELAUTO is the Belgian organization for management of ELV and batteries used in hybrid and electric vehicles. It stimulates and coordinates collection, treatment & recycling of wrecked vehicles.
There is only one centre authorised by FEBELAUTO to accept hybrid and electric vehicles as well. This centre has now agreed a partnership with the company to cover the Liège region, so that the company would become the second centre in Wallonia, both centres working in collaboration.
The objective of the company is to guarantee the traceability of each part recovered on an ELV, to offer maximum transparency and safety, via digitization of the part from the line to the sales site (bar code, scanning, original vehicle data, description, digital photos, etc.). It is therefore intended to proceed on their site with the complete dismantling of the vehicle, the recovering of the recoverable parts, and the identification of those parts one by one before putting them on the second-hand market.
Ability to optimize line and inventory management by analyzing data collected continuously at each station by ERP program.
Source of ELV has been secured through diversified channels. As of today, the company captures roughly a bit less than 1000 ELV per year and opportunistically commercializes second-hand parts out of it. They plan in near future to acquire a new innovative and mechanized line enabling the company to dismantle parts out of ELV to a much greater extent than the traditional activity allowed so far economically and capture more than 4000 ELV / year.
This industrial line will allow to:
1) Exceed the recovery rates observed in the ELV centres sector on materials and in particular plastic (min 10 kilos versus 3 to 5 today);
2) Exceed the current results of the sector in terms of the percentage of reuse of second-hand parts.
The company is willing to expand its activities in export since it will multiply the volume of second-hand parts by a factor 5 in coming 18 months.
The outlet is currently mainly a local market - Benelux, France ... The export market is very important here (65%). Above all, the company targets the second-hand market towards Africa - North, West, possibly South. They are hence looking for partners interested in such parts for batch export in the African market. This should represent parts coming from above 3000 ELV in next 2 years after actual start of the activity in 2021.
The search for a partner is mainly focused on identifying professionals based in Europe who will play the role of exporters to Africa; they must have a strong network on-site, can take care of administrative formalities, logistics, etc.
The typical partnership would therefore be a distributor or a sales agent, who takes care of the supply chain aspect. The company aims at BtoB relationship, under EXW incoterms.
The company will select partners able to deal with all parts that wouldn’t fit the local market needs.