German Pyrolyx has signed a Letter of Intent (LOI) with German tyre manufacturer Continental that details a five-year supply agreement for 10,000-15,000 tonnes per annum of recovered Carbon Black (rCB). The minimum five-year supply agreement requires the development of an additional Pyrolyx manufacturing facility in Eastern Europe.
The rCB will be first supplied from Pyrolyx’s existing plant in Stegelitz, Germany and another plant in Terre Haute, US, due to be operational in June 2019. Pyrolyx is expected to satisfy the tyre manufacturer’s initial European regional rCB demands once the Eastern European facility is operational in late 2021.
The manufacturer may well increase its demand from Pyrolyx beyond the initially stipulated annual tonnage if the demand for rCB increases over time.
Thomas Redd, Pyrolyx’s American CEO, has said: “Pyrolyx is a world leader in assisting the carbon black industry to decrease its environmental footprint and will eliminate the annual burning or dumping of some four million scrap tyres and reduce carbon dioxide emissions by over 32,000 tonnes once this agreement is implemented, as compared to current carbon black manufacturing techniques.”
Michael Triguboff, Pyrolyx Germany’s CEO, has noted that Pyrolyx benefits from a long-term joint development agreement withContinental – Pyrolyx has supplied Continental with product from its Stegelitz, Germany plant for approximately three years. Both companies will cooperate to finalise a formal binding offtake agreement in the coming months.
Triguboff has added that: “Pyrolyx will hopefully be an example of impact investing through strong financial and quantifiable environmentally sustainable returns.”
The LOI is a non-binding statement of intention between Pyrolyx and Continental. Pyrolyx is confident a binding supply agreement will be entered into with the tyre manufacturer.
Pyrolyx is the world leader in the extraction of rCB from end-of-life tyres which are then used in a specialised process to manufacture new tyresand other products in the plastic, technical, rubber and masterbatch industries. Pyrolyx shares are listed on the stock exchanges in Frankfurt and Dusseldorf, the Munich Stock Exchange,the Australian Stock Exchange, and also on the electronic trading system Xetra.