InvestChile – Michelin to build new-generation tire recycling plant in Antofagasta

InvestChile – Michelin to build new-generation tire recycling plant in Antofagasta

We are very proud of being part of this project as Michelin´s lawyers in Chile.

The first stage of the project will cost US$30 million and will be the company’s largest investment in Chile. In the future, the plant could also recycle tires from other countries such as Argentina or Peru.

nickolas-nikolic-VCiGWSU8mrA-unsplash

The plant will be the largest investment in Chile by France’s Michelin since its arrival in the country 40 years ago. It plans to build a tire recycling plant in northern Chile’s Antofagasta Region that will create 1,000 jobs during its construction phase and around 100 once in operation.

The project will cost US$30 million and will begin construction at the end of this year. It is expected to start operations in early 2023 and will be able to recycle 30,000 tonnes of tires, more than the group sells around the country. Although its focus will be on mining tires – which each weigh between 2 and 5 tonnes – it will also be available to recycle tires from other industries such as those used in trucks or private cars.

The initiative is being implemented in the framework of Chile’s REP Law, which extends producers’ responsibility to the final disposal of the waste resulting from their production processes. In its first phase, the law requires only 25% of tires to be recycled and Michelin’s plant will take it well beyond that.

“As part of its global strategy of working towards making everything sustainable, Michelin is announcing the construction in Chile of its first tire recycling plant, the first in the world to recycle mining tires. We are doing this as a joint venture with Sweden’s Enviro. The great innovation is that this plant incorporates mining tires. This is a decision by Michelin internationally and is great news for Chile,” said Guillermo Crevatin, general manager of Michelin Chile.

He added that the investment decision has to do with the company’s vision of advancing towards a circular economy, but also with the REP Law. “Our ambition is to go further than the law. We also aim to contribute to the mining industry, which is making progress on sustainability. With this plant, we can help towards that goal,” stressed Crevatin.

“From the first year, the law requires that producers recycle 25% of what they introduce into the market and collect 50%. It is progressive and, by 2030, will require the recycling of 100% of mining tires. We are going beyond the law. It helps, of course, but our objective goes much further,” he explained.

As regards the plant’s characteristics, Crevatin indicated that the initial investment will reach US$30 million, but could increase. In terms of its size, it will be able to process 30,000 tonnes of mining tires, out of a total of 44,000 tonnes, which is the size of the market. “We will be able to recycle many of the tires that are sold as well as the liability or, in other ways, tires that have been lying around for years because there was no solution for them,” he underscored.

Tire recycling technology has focused on the production, as an end product, of a combustible material that is used, for example, in the cement industry. However, the Michelin plant will use a different technology, called pyrolysis, which works by heating the waste and breaking it down into four products: carbon black, green oils (which come from rubber), metal and gas.

“All these products are not lost and are recovered. For example, part of the gas is used in the recycling process itself. The oils, after being refined and treated, serve as lubricants and for other uses in different industries and the metal can be completely reused. The carbon black is the most difficult but can be reused, for example, in the manufacture of new tires,” explained Crevatin.

Evaluation of Chile

According to Crevatin, possible future expansions of the plant will depend on various factors such as the response of the market and, particularly, the mining industry to the plant. However, early surveys show that, given their own corporate objectives, mining companies have significant interest in recycling tires. In light of this, conversations have already been taking place, with promising results.

Why invest in Chile? Crevatin indicated that the project considered various factors, including the high concentration of mining clients, the REP Law and the Chilean government’s openness to issues of this type.

“They have given clear signs of interest in the circular economy and sustainability. There is significant support in terms of advice on issues of this type. Independently of what has happened since the outbreak of social unrest, the plan has not changed. Although it is a concern, the seriousness, policy continuity and continuity on key issues, even across different governments, that Chile has shown is far more important. In Chile, there is legal security and it is a country where, as investors, we feel comfortable, because the conditions are there. For this reason, we had no doubt about building this plant in Chile,” concluded Crevatin.

Source: Pulso.

Source: InvestChile

 

UPDATE – MEASURES IN CATASTROPHE SITUATION COVID-19

UPDATE – MEASURES IN CATASTROPHE SITUATION COVID-19

Santiago, December 7, 2020.

Faced with the increase in infections by COVID-19, the Ministry of Health has announced that starting at 05:00 hours on Thursday, December 10, all the municipalities of the Metropolitan Region will regress to Phase 2 of the Transition of the Plan Step by Step.

With this measure, the affected communes will be in quarantine on Saturdays, Sundays, and holidays, days when it is only possible to go out to carry out specific procedures by requesting an individual permit on the Virtual Commissioner website, for which only one permit will be available per week.

With this regression to Phase 2 – Transition, it is important to consider, among other aspects, the following:

  • Non-essential commerce may only operate from Monday to Friday and must close its doors on Saturdays, Sundays, and holidays.
  • You will not be able to go to work in quarantined places unless it is an essential service and you obtain a collective travel permit or a single collective permit.
  • Interregional travel will not be allowed, nor will transfers to unusual residences.
  • Restaurants may only open their terraces, in open places, with a distance of at least 2 meters at the tables and a maximum stay of two hours.
  • Schools that already have face-to-face classes will not be affected by the setback.
  • The meeting plan for Christmas and New Years’ remains unchanged for now.

Along with the 52 communes of the Metropolitan Region, the commune of Renaico, La Araucanía Region, also recedes to Phase 2. On the other hand, the following communes recede to Phase 1 of Quarantine: Arauco, Bío Bío Region; Los Sauces and Angol, Region of La Araucanía and; Puerto Williams, Magallanes Region. The communes not mentioned are kept in the current phase. To consult the situation of a specific commune, you can access the following link.

For any questions on this matter, please contact our team at info@chirgwin.cl.

Best regards,

| CHIRGWIN | – a collaborating firm of Andersen Global

Leaders League – Ranking 2021

Leaders League – Ranking 2021

We are part of the Leaders League Ranking 2021. The Firm and its professionals were recognized for the second consecutive year in the Corporate Tax, Banking and Finance, and Corporate / Mergers & Acquisitions practice areas. (www.leadersleague.com)

A special highlight to the Corporate Tax area on which the ranking includes Andrés Chirgwin in the list of RECOMMENDED professionals.

This ranking is the result of an investigation that gathered the comments of legal directors, legal managers, financial directors, economists, auditors, investment banks, funds, lawyers, among other professionals.

We thank our clients who supported us in this process, referencing our Law Firm for practice in the areas mentioned and recognized by the French ranking on this occasion.

Legal Alert Chile – December 2020

Opening of Borders in Chile for Foreigners – COVID-19

Decree number 500 of the Ministry of the Interior and Public Security of Chile was published on November 12 in the Official Gazette, which allows the transit of foreigners to the national territory, for any reason of travel, starting at 00:00 of November 23, complying with current health regulations.

The government considers a gradual opening of the border, so in this phase, only the international air barrier will be lifted at the Arturo Merino Benítez Airport in Santiago, while the rest of the borders will continue to be closed.

The government announced that the sanitary measures that foreigners who enter the country must comply with are:

– Having health insurance associated with Covid-19 that covers their entire stay in the country.
– Present an affidavit with the origin, destination, health condition, and possible symptoms attributable to the coronavirus.
– Present a negative PCR test less than 72 hours old from the collection of the sample.- In addition, those arriving from abroad must download a tracking app (digital epidemiological surveillance system) that the authorities will make available, where the person will notify their health situation daily for a maximum of 14 days.

The protocol of entry of foreigners to the country can be consulted in the following link.

If you have any doubts on this subject, please contact our team by email at info@chirgwin.cl.

Regards,

| CHIRGWIN | – collaborating firm of Andersen Global

Best Lawyers 2021 Recognition

Best Lawyers 2021 Recognition

Chirgwin Law Firm partners were highlighted in the legal guide Best Lawyers, which ranks legal professionals according to the opinions of their peers.

Andrés Chirgwin was recognized for his practice in the area of Project Finance and Development Practice and Hernán Peñafiel in the areas of International Arbitration and Litigation.

Best Lawyers is a North American original publication, which is among the most respected in the world in the development of legal rankings.