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Revolutionising the Brazilian auto recycling industry – the rise of OCTA

Auto Recycling World spoke with Arthur Rufino, the CEO of OCTA Circular Economy Ltd (OCTA), a Brazil-based company revolutionising the automotive recycling industry. OCTA offers innovative solutions for the sale of end-of-life vehicles and provides access to high-quality reused parts through its network of approved disassembly centres. Their mission is to promote the circular economy and generate both savings and sustainability for fleets. By connecting sectors and fostering responsible governance, OCTA aims to reduce vehicle theft, minimise the number of abandoned vehicles, and contribute to a greener future. Arthur Rufino shares the company’s background, its transformative journey, and its significant impact on Brazil’s automotive recycling market.

 

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Arthur Rufino

The family’s company, JR Diesel, was founded in 1985 when Geraldo Rufino, Arthur’s father, made the decision to dismantle two crashed trucks from his small fleet. The sale of the parts proved to be profitable, and he introduced a professional vision of transparency, enchantment, and organisation to the business, which was uncommon in the dismantling industry in Brazil. Raised in this environment, Arthur took over the company in 2007 and initiated a transformation of the business model to align it with corporate standards in the automotive market. This revolutionised the dismantling practice in Brazil and resulted in the creation of the largest company in the segment in South America.

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In 2012, the company entered into acquisition negotiations with a major international player in the dismantling sector. However, the deal did not come to fruition due to family issues. Nevertheless, this experience provided them with a vision of the potential that could be achieved in the Brazilian market by addressing the main challenges: vehicle supply, scalable parts distribution, and the absence of market regulation.

In 2013, an opportunity arose when a bill was introduced to prohibit dismantling activities with the aim of reducing carjacking-related deaths. They seized this moment to present their management methodology and traceability to the São Paulo State Government, leading to the establishment of the Dismantling Law in 2014. The law resulted in a 52% reduction in vehicle theft in the state, demonstrating that the impact of their business extended beyond environmental considerations.

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They then began studying ways to scale not only their family’s company but also the entire market. This realisation led them to conceive OCTA, a startup with a circular marketplace, as the most suitable solution to achieve their goals of reducing vehicle-related crime. OCTA was founded in 2020 and followed the typical startup trajectory of securing investment from angel investors, developing the product, and obtaining larger seed funding. The company continues to expand in order to develop a market that currently operates at only 10% of its capacity.

With a fleet of 100 million vehicles, Brazil presents a potential market worth BRL 40 billion per year, creating new opportunities for entrepreneurs, hundreds of thousands of job prospects, a reduction of 14 million tonnes of CO2 emissions, and a significant decrease in vehicle theft through the reuse of illegal parts. Arthur said, “Helping my competitors create a larger opportunity than the original one aligned perfectly with my life purpose.”

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About OCTA Circular Economy Ltd

OCTA Circular Economy Ltd is a pioneering company revolutionising the automotive industry in Brazil. As the Circular Marketplace, they offer solutions for the sale of end-of-life vehicles and access to high-quality reused parts. By connecting sectors and promoting the circular economy, OCTA aims to reduce CO2 emissions, curb vehicle abandonment, and address health risks. They also tackle vehicle theft crime while fostering sustainability. OCTA’s responsible governance practices prioritise diversity, transparency, and ethical conduct. OCTA promotes sustainable fleet management through its innovative approach, contributing to a greener future and a safer society.

To find out more, visit https://octa.com.br/quem-somos

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