Pyrum given green light for early start of construction at second German plant

Dillingen/Saar, Germany – Pyrum Innovations AG has received approval from local authorities for the early start of construction at its second end-of-life tire (ELT) pyrolysis plant in Germany.

To be built in Perl-Besch, near the border triangle between Luxembourg, Germany and France, Pyrum GreenFactory II GmbH will have the capacity to process 22.4 kilotonnes per annum (ktpa) of ELTs.

Spanning an area of around 25,000 sq.m., the unit will have “direct access to the Moselle [river], existing railway lines and the nearby motorway.”

Pyrum expects to break ground on the facility in July, with commissioning scheduled for the first quarter of 2027, according to a 26 June release.

The factory will be Pyrum’s second waste tire processing plant in Germany, in addition to its flagship facility in Dillingen, Saarland, which was recently expanded to process 22 ktpa of ELTs.

“Our second own plant marks the next important step in our rollout plan. We are... finally be able to move on to the construction phase,” said CEO Pascal Klein.

With the approval for early construction, the company can begin the first tender processes “without delay.”

According to CFO Kai Winkelmann, Pyrum will use a €25 million credit line from BASF, which was agreed at the end of 2023 (ERJ report), to finance the equity share of the plant in Perl-Besch and its ongoing project in the Czech Republic (ERJ report).

In addition, Winkelmann said Pyrum was “in advanced, positive discussions” with various financing partners, including “a major European bank,” for further financing options.

If the financing talks are successfully concluded, both projects would be fully financed, according to the Pyrum CFO.

Furthermore, the basis for accessing the second half of the €50 million loan granted by BASF would also be established. 

“This would provide the company with additional financing in the high double-digit million range for further projects in the rollout plan,“ he explained.