BASF in financial loan deal with tire recycler Pyrum
Loan facility to support construction of planned German ELT pyrolysis plant, other facilities
Dillingen, Germany – German chemicals major BASF SE has provided financial support to waste tire recycler Pyrum Innovaiton, with an 'initial conditional loan' of €25 million.
Under the deal announced 15 Nov, BASF Antwerpen NV agreed to provide the loan, available in tranches, as “start-up financing” for Pyrum’s “specific project pipeline by 2026.”
BASF will provide another €25 million to Pyrum if the German recycler secures financing of €50 million, through other means such as corporate bonds, loans or other investing partners.
According to Pyrum, the finance package is focused on project-planning and construction of at least three new plants, each with capacity to process 20 kilotonnes per annum (ktpa) of used tires.
Pyrum plans to use the funds in particular for the construction of its previously announced plant in Saarland (ERJ report).
The funds will also be used for the equity contribution and co-financing of up to five projects announced by the German recycler in recent months.
In October, Pyrum announced plans to set up a factory in Czechia, a month after disclosing plans for a new facility in Greece.
Earlier in the summer, Pyrum signed an agreement with Suez recycling and recovery company for its first ELT pyrolysis plant in the UK.
At the start of the year, it signed a deal with Norwegian circular plastics company Polyfuels Group AB to jointly establish four ELT pyrolysis plants in Norway, Sweden, Finland and Estonia.
In February, Pyrum announced a local German project with plans to build a 20ktpa processing factory in Homburg, in the German state of Saarland.
In addition, the company announced this month that it is mulling a new unit in northwest German port of Bremen in collaboration with recycling company Remondis.
Pyrum is also set to start operations following its own expansion project in Dillingen, after the ‘warm commissioning’ of two new lines at the facility.
The new units will raise capacity at Pyrum flagship plant in Germany to 20ktpa.