Itochu: Murfitts Industries acquisition about sustainability and vertical integration

When Kwik-Fit and Stapleton’s owner ETEL announced the recent acquisition of UK tyre recycling specialist Murfitts Industries on 20 December 2021, ETEL’s owner – the Japanese Itochu Group – also shared details of its rationale for the takeover.

From Itochu’s point of view, the acquisition of Murfitts fits into the wider company’s “Brand-new Deal 2023” strategy – a medium-term management plan which aims to result in “business transformation through the incorporation of consumer needs into products” and “continued contribution to/efforts to achieve the SDGs [Sustainable Development Goals]” in its Basic Policies.

To this end, Itochu recently announced Project TREE, a programme that focuses on the sustainable supply chain of natural rubber, which is of course a key raw material necessary for the production of tyres. The acquisition of Murfitts, via ETEL, is seen as the next step towards these goals. Specifically, Itochu says it “aims to contribute not only to the reduction of waste but also to making the entire tyre value chain more sustainable” see below diagram. In other words, seen from an Itochu perspective, the Japanese conglomerate is taking steps to vertically integrate the supply chain through the prism of sustainability.