Genan Exits US Recycling Market to Focus Investment on Europe

Genan has sold its tyre recycling plant in Houston, Texas, to Liberty Tire Recycling as the Danish group concentrates investment on Europe. The transaction transfers a profitable US operation to its long-standing feedstock supplier. It also follows Genan’s recent German acquisition and signals further consolidation within the end-of-life tyre recycling market.

A strategic exit from North America

Genan established its US operation in 2014 to test its recycling technology and business model in North America. The company said the Houston plant has since developed into a profitable operation.

Liberty Tire Recycling has supplied most of the plant’s feedstock for the past 11 years. Genan therefore considers the company well placed to integrate and develop the facility.

Liberty is owned by global infrastructure investor I Squared Capital. Financial terms for the transaction were not included in the announcement.

Poul Steen Rasmussen, group chief executive of Genan Holding, said the business had demonstrated that its technology could succeed in North America. He added that Liberty had the market knowledge and industrial position needed to take the Houston operation forward.

The divestment took effect on 15 July 2026.

Resources redirected towards Europe

Genan said the sale will release management and financial resources for its European operations. The group sees stronger development potential across markets where demand for recycled raw materials is increasing.

Rasmussen said Europe’s fragmented recycling landscape creates opportunities for investment, modernisation and consolidation.

The decision follows Genan’s purchase of ESTATO Umweltservice in Germany. Together, the acquisition and US disposal show the group moving towards a more concentrated European operating model.

After the divestment, Genan operates six recycling plants across Denmark, Germany and Portugal. Their combined annual processing capacity exceeds 350,000 tonnes of tyres, according to the company.

Profitability supports the change in direction

The sale follows an improvement in Genan’s financial performance. Tyre News previously reported that Genan increased EBIT to €8.8 million in 2025, compared with €7.9 million in the previous year. Revenue reached €64 million.

Those results provide useful context for the divestment. Genan is withdrawing from the US after establishing a viable operation, rather than closing an underperforming site.

The transaction also suggests that scale and regional integration are becoming more important within tyre recycling. Operators face rising capital requirements, variable demand for recovered materials and increasing scrutiny of end-of-life tyre movements.

Why the transaction matters

Europe’s tyre recycling sector is under pressure to create dependable markets for recovered rubber, steel and textile materials. Processing capacity alone does not guarantee circularity unless those outputs can replace virgin resources at commercial scale.

This challenge has become more visible across the industry. The Tire Cologne 2026 placed circular production and tyre recycling at the centre of its programme, reflecting growing attention from manufacturers, recyclers and technology suppliers.

UK reporting also shows why established domestic and European processing capacity matters. Environment Agency figures cited by Tyre News indicated that only 54 of 4,189 tracked waste tyre shipments had completed post-shipment verification correctly.

Against that background, Genan’s decision points towards further investment and consolidation around regulated European recycling infrastructure.

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Tagged with: Genan, Liberty Tire Recycling, Houston tyre recycling plant, end-of-life tyres, tyre recycling, recovered rubber, circular economy, European recycling, recycling consolidation, I Squared Capital, waste tyre processing

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