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Area Development - Site Selection, Facility Planning and Workforce Development

Denmark-Based Genan Opens U.S. Headquarters-First Tire Recycling Facility In Houston, Texas

05/05/2014
A Denmark-based tire recycling company and global leader in the extraction and production of rubber granulate, rubber powder and steel from scrap tires, Genan, opened its $140 million U.S. headquarters and state-of-the-art tire recycling facility in Houston, Texas.

The firm currently operates the world's four largest tire-processing plants in Germany and Denmark. The new plant, which will employ 60 workers, has the capacity to recycle approximately 10 million passenger car tire equivalents a year, about a third of all the used tires in Texas. Within 24 months, the Genan Houston plant will be expanded to produce a line of very fine cryogenic rubber powder and a technologically unique devulcanization line for the production of rubber, which will be able to substitute virgin rubber compounds.

According to the firm its Houston factory is the first step in Genan’s US strategy. As in Europe, Genan is aiming for a market share of approximately 10 percent of the American market for end-of-life tires.

The facility in Houston, Texas, is the Genan United States headquarters and the first cornerstone of a strategic network of 4 to 5 plants to be optimally placed according to tire supply, as well as customer base. The decision to place the factory in Houston was primarily made on the grounds of the positive business climate in Texas, access to the second busiest port in the US as well as the low energy costs, the company said.

Lars Raahauge, Genan's Director of Business Development, said, "We are currently performing due diligence on a number of states across the country. Exact locations will depend on the long-term reliability of available tire supplies as well as a business setting, community support, and a legislative and regulatory approach that is compatible with Genan's environmentally and climate friendly tire recycling concept."

Cheryl Mergo, Sustainable Development Program Manager for the Houston-Galveston Area Council, said, "Genan's Houston facility is an exciting addition to the US market and represents tremendous progress in environmental stewardship and recycling technology."

Genan's products are also used for synthetic turf installations, playgrounds and recreational facilities, sports tracks and grounds, asphalt roads, building products, flooring, injection molded products, industrial applications, noise insulation and many other purposes and applications. Genan products have been utilized at the last two NFL Super Bowls and are currently in use across the country at a number of professional and college football facilities.

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