Back to News
Japan (JP)🚗 Automotive / PartsPublished: 19 February 2026

[Supply Chain] Toyota to Establish Circular Factory in Poland — Expanding Resource Recovery from End-of-Life Vehicles in Europe

Source:Toyota Motor Europe
Toyota Motor Europe announced in February 2026 that it will establish a Circular Factory in Wałbrzych, Poland. The facility will cover approximately 25,000 m² and is planned to process around 20,000 end-of-life vehicles per year. The company is recovering parts, steel and plastics from end-of-life vehicles, expanding its circular economy operations in Europe.
Editor's View

Under end-of-life vehicle (ELV) policy, lifecycle management extending beyond the point of sale to include recovery of parts and materials after a vehicle's service life becomes important, rather than management ending at sale. For automotive manufacturers, this makes the infrastructure covering recovery of end-of-life vehicles, parts reuse and material recovery important alongside design and sales, and the investment in a concrete piece of business infrastructure such as a Circular Factory should be read as an expansion in the scope of product lifecycle management, rather than as grounds to assert flatly that "the automaker has become a resource-circulating company."

※ This article is based on official public information from an external source (Toyota Motor Europe) and has been analyzed and organized for practical use.

Related Regulation Information

EU Ecodesign for Sustainable Products Regulation (ESPR)

The EU Ecodesign for Sustainable Products Regulation (ESPR) is a comprehensive framework regulation requiring environmentally sound design for nearly all physical products placed on the EU market, excluding categories such as food, feed, and pharmaceuticals. It represents a fundamental strengthening and expansion of the previous Ecodesign Directive, positioning environmental design as an integrated discipline within the EU market by mandating that sustainability requirements be built in from the earliest stages of product planning. The framework rests on four main pillars. First, ecodesign requirements that set product-specific rules covering durability, repairability, reusability, recyclability, environmental footprint, energy efficiency, and restrictions on hazardous chemical content (in coordination with REACH). Second, the Digital Product Passport (DPP), which requires products to carry a data carrier such as a QR code so that material composition, repairability and recyclability, carbon footprint, and other data can be provided and tracked digitally to ensure supply chain transparency. Third, a phased rollout through product-specific delegated acts covering priority product categories one at a time (textiles, steel, aluminum, furniture, tyres, and others). Fourth, market surveillance and conformity control, including exclusion of non-compliant products from the EU market and labelling where required by delegated acts.

See this regulation's full analysis (timeline & business impact)

💡 The overview and schedule for the regulation related to this article can also be found on the Regulatory Gateway Database page.

Advertisement