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    # Recyc'Tech Expansion ## 1. Context and Strategic Objective Founded in 2018, **Recyc'Tech** is a French company specializing in the recycling of lithium-ion batteries for electric vehicles. After four years of research and development (R&D) and two years of industrial pilot testing, the company has developed a patented hydrometallurgical process that achieves a recovery rate of 95% for strategic metals (cobalt, nickel, lithium). To date, Recyc'Tech operates a single plant in northern France with an annual capacity of 5,000 tons. **Objective:** The management team wants to accelerate its growth and is considering an expansion into the German market, the European leader in automotive production. --- ## 2. Key Data ### Market and Competition - **Current market (France):** 15,000 tons of batteries to be recycled per year (estimated 20% annual growth). - **Target market (Germany):** 40,000 tons per year (estimated 25% annual growth). - **Competition:** - 2 major players in Germany (incumbents using pyrometallurgy, which is less efficient and more polluting). - 1 emerging startup with a technology similar to Recyc'Tech. ### Financials - **Revenue (France):** €12M in Year N. - **EBITDA Margin:** 15%. - **Initial Investment for a plant in Germany:** €25M for a capacity of 10,000 tons/year. - **Fixed Costs (Germany):** €4M / year. - **Variable Costs:** €600 / ton. --- ## 3. Work Streams As part of this expansion study, your consulting mission is structured around three key pillars: 1. **Market Analysis:** Assess the attractiveness of the German market and the competitive intensity. 2. **Profitability Study:** Determine the break-even point for the new German facility and the potential ROI (Return on Investment). 3. **Operational Strategy:** Define the business model (direct expansion vs. strategic partnership with a German gigafactory). --- ## 4. Key Questions to Address * **Market Sizing:** Based on the growth rates provided, what will be the volume of the German market in 5 years? * **Operational Excellence:** What are the logistical risks associated with cross-border battery transport? * **Profitability:** How many tons must be processed in Germany to reach the break-even point? * **Strategic Recommendation:** Should Recyc'Tech internalize its collection or rely on the supply chains of automotive manufacturers?
    BainIndustrie25 min4 steps

    # Recyc'Tech Expansion ## 1. Context and Strategic Objective Founded in 2018, **Recyc'Tech** is a French company specializing in the recycling of lithium-ion batteries for electric vehicles. After four years of research and development (R&D) and two years of industrial pilot testing, the company has developed a patented hydrometallurgical process that achieves a recovery rate of 95% for strategic metals (cobalt, nickel, lithium). To date, Recyc'Tech operates a single plant in northern France with an annual capacity of 5,000 tons. **Objective:** The management team wants to accelerate its growth and is considering an expansion into the German market, the European leader in automotive production. --- ## 2. Key Data ### Market and Competition - **Current market (France):** 15,000 tons of batteries to be recycled per year (estimated 20% annual growth). - **Target market (Germany):** 40,000 tons per year (estimated 25% annual growth). - **Competition:** - 2 major players in Germany (incumbents using pyrometallurgy, which is less efficient and more polluting). - 1 emerging startup with a technology similar to Recyc'Tech. ### Financials - **Revenue (France):** €12M in Year N. - **EBITDA Margin:** 15%. - **Initial Investment for a plant in Germany:** €25M for a capacity of 10,000 tons/year. - **Fixed Costs (Germany):** €4M / year. - **Variable Costs:** €600 / ton. --- ## 3. Work Streams As part of this expansion study, your consulting mission is structured around three key pillars: 1. **Market Analysis:** Assess the attractiveness of the German market and the competitive intensity. 2. **Profitability Study:** Determine the break-even point for the new German facility and the potential ROI (Return on Investment). 3. **Operational Strategy:** Define the business model (direct expansion vs. strategic partnership with a German gigafactory). --- ## 4. Key Questions to Address * **Market Sizing:** Based on the growth rates provided, what will be the volume of the German market in 5 years? * **Operational Excellence:** What are the logistical risks associated with cross-border battery transport? * **Profitability:** How many tons must be processed in Germany to reach the break-even point? * **Strategic Recommendation:** Should Recyc'Tech internalize its collection or rely on the supply chains of automotive manufacturers?

    Assisting a French plastic recycling scale-up in selecting a new European country for expansion and defining its market entry strategy.

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    The brief

    Votre client est Recyc'Tech, une scale-up française qui a développé une technologie unique pour recycler un type de plastique spécifique, jusqu'alors non recyclable. Ce plastique est issu d'équipements électroniques, d'électroménagers et de véhicules. Après un fort succès en France, l'entreprise cherche à s'implanter dans un nouveau pays pour devenir un champion européen.

    The client's question

    Le PDG vous demande de recommander un pays européen prioritaire pour l'expansion et de définir la stratégie d'entrée la plus pertinente.

    4 steps to solve this case

    Here are the questions you'll need to answer.

    1
    Structuring

    Approach and Analytical Framework

    2
    Chart reading

    Market Comparison

    3
    Math

    Calculation of Addressable Markets

    4
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