Munich – Recovered carbon black (rCB) manufacturer Pyrolyx AG has signed a letter of intent with Continental Corp. for a five-year supply deal with the company.
The proposed agreement stipulates that the supply will build up to 10-15 kilotonnes per annum (ktpa) over two years, Pyrolyx said in an 8 April statement.
The two companies, it added, will work to finalise a formal binding offtake agreement in the coming months.
The rCB will be initially supplied both from Pyrolyx’s existing plant in Stegelitz, Germany and its plant in Terre Haute, Indiana, due on-stream in June.
The supply agreement also requires the development of additional Pyrolyx manufacturing capacity in eastern Europe, which is expected to be operational by late 2021.
The two parties also anticipate that demand for rCB will increase over time and, Pyrolyx added.
“If it does, the [tire] manufacturer may increase… [the order] beyond the initially-stipulated annual tonnage,” the company noted.
The letter of intent is “an extremely positive development” which validates Pyrolyx’s process and products, said Pyrolyx’s USA CEO Thomas Redd.
The agreed tonnage will require processing of 4 million end of life tires, Redd added.
This, he added, will reduce CO2 emissions by over 32ktpa compared to using virgin carbon black.
Pyrloyx has already been supplying Conti with rCB products from its Stegelitz plant in the past three years, noted Michael Triguboff, Pyrolyx AG’s CEO.