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Recovered carbon black partnership

Pyrolyx is to become one of the world's largest producers of recovered carbon black from scrap rubber and tires

 

At this year’s Tire Technology Expo Pyrolyx and Carbon Clean Tech (CCT) revealed the strategic merger between the two companies specializing in the production of recovered carbon black from scrap rubber and tires. This partnership will strengthen the capabilities of both businesses in the production and R&D of sustainable polymers. CCT’s CEO, Philipp Theden, explained, “We are in a growing industry and over the last few years it has become clear that it’s really hard for companies like us worldwide to make things happen and to survive alone. Our aim was always to join forces with other companies to achieve a stronger position in the market.”

As part of the merger, Stegelitz, a fully owned subsidiary of CCT, will be incorporated in Pyrolyx by way of capital increase. In exchange, CCT will receive shares corresponding to 16.6% of the share capital of Pyrolyx.

A key component of the acquisition will be the €10m (US$11.4m) investment in expanding capacity at CCT’s 4.500 t/a capacity rubber carbon black production plant near Magdeburg in Germany (pictured). “We plan to construct a second building that will house Pyrolyx’s patented reactor technology. In the middle term, we will need to hire new people, but first we have to get approval and build the facility and that takes a while,” said Theden. The expansion is expected to take approximately 24 months and in the first phase, will double production capacity.
 



A large portion of that investment will also fund research and development activities in several key areas: “Firstly, we are always working on improving the behavior of our materials. Secondly, both companies are engaged in the ASTM committee to set standards for recovered carbon black. To do that we have to work together with the suppliers of test machines because they may need to adapt their equipment in order to measure our material,” said Theden. “We’re also doing research to identify the advantages of recovered carbon black over conventional carbon black.”

Alongside that, a new rubber laboratory at CCT’s Magdeburg production site is also due to be opened in the next quarter and will house state-of-the-art rubber testing equipment.

Theden believes the operations of each business will complement one another ideally. He summarizes, “I think that we will have a very good synergy because CCT is an expert in batch technologies while Pyrolyx works with continuous technology; we will have the possibility to use both technologies to our advantage.”
 



Meanwhile, Pyrolyx has entered into another strategic partnership with US-based CH2E Group, which owns the largest tire dump in the USA with a volume of roughly 600,000 tons. Pyrolyx plans to construct a commercially usable production facility on CH2E’s site in Hudson, Colorado, for which CH2E will provide high-quality shredded scrap tires. Commissioning is scheduled for 2016.

Niels Raeder, CEO of Pyrolyx, said, “By partnering with the CH2E Group, we have now taken the strategically important step of entering the US market – the second largest in the world. With Pyrolyx carbon black now having been successfully tested by the tire industry, we’ll be able to produce a significant amount of recovered carbon black in the USA when the plant is complete.”

For more details on Pyrolyx's patented technology click here.

 

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