There were two pieces of major news last week amongst producers of recovered carbon black.
On February 13, Pyrolyx AG (Munich, Germany) and carbon clean tech AG (Potsdam, Germany) announced plans to merge, creating the world’s largest producer of recovered carbon black (rCB) from post-consumer rubber and tires. Completion of the transaction is scheduled for end of April 2015, and the full integration of cct into Pyrolyx AG by the end of the 2nd quarter 2015.
A significant component of the transaction is that cct Stegelitz GmbH, a fully owned subsidiary of cct AG, will be incorporated into Pyrolyx AG by way of a capital increase. In exchange cct AG will receive shares corresponding to a share of 16.6% of the share capital of Pyrolyx AG. Furthermore, the total value of cct Stegelitz GmbH will be compensated with an additional cash component. Through this agreement, cct founders and shareholders will remain committed to, and involved in continuing to build the combined company.
Pyrolyx AG is a Munich-based company specializing in practical and applied research in environmental technology, including a unique process that enables rCB production from commercial rubber granules from post-consumer tires. cct AG, based in Saxony-Anhalt and Potsdam, Germany, is the leading European producer of rCB, with an industrial production facility in Stegelitz near Magdeburg, serving customers since 2012.
The term sheet has been agreed upon by all cct shareholders and the Pyrolyx AG Supervisory Board.
Producers of recovered carbon black are careful to distinguish their product (rCB) from recycled carbon black produced from traditional pyrolysis, which is generally of poor quality and cannot be used in high end applications such as tires. According to suppliers, rCB is a cost-effective, sustainable alternative to traditional carbon black for a variety of plastics and rubber applications, including rubber compounds for tires.
One of the key aspects of the acquisition is the expansion of production capacities by implementation of a complimentary production facility, based on Pyrolyx-patented technology, at the site of cct’s existing 4.500 t/a capacity rCB plant. Within the next 24 months, Pyrolyx plans an investment of 10 M Euros into product development, research and international sales. In addition, an rCB and rubber laboratory at the production site in Stegelitz is planned. Upon contract closing, cct’s current CEO, Dr. Philipp Theden, will join Pyrolyx AG’s executive board. All current cct GmbH and cct AG employees will be an integral part of the newly formed Pyrolyx group.
In the second major piece of news, on February 19, Pyrolyx announced a strategic partnership with the CH2E Group in Colorado. The American CH2E Group owns the largest tire dump in the US with a volume of roughly 600,000 tons. Under the LOI for a future partnership signed on February 18, 2015, Pyrolyx will build a commercially usable Pyrolyx production plant on CH2E’s site in Hudson, Colorado. The US company will provide high-quality shredded scrap tires and the land required to build the plant. Commissioning is scheduled for 2016, after which Pyrolyx together with CH2E will have the right to build further production lines for the recovery of carbon black from end-of-life tires. By today’s standards, this will be the world’s largest plant for the production of recovered carbon black.