Chinese recycler mulls major tire pyrolysis capacity expansion

Shanghai, China – China's Niutech Environment Technology Corp. has announced plans to expand tire pyrolysis in Jinan city, Shandong province, to meet strong demand for recycled products.

In a 25 March stock exchange filing, the company said its subsidiary Shandong Hesheng Environmental will invest about RMB220 million (€27 million) to build a 100 kilotonnes per annum (ktpa) ‘tire pyrolysis utilisation project’ at its existing site in Jinan.

The move will raise total processing capacity at the site from 60ktpa to 160ktpa, as the company seeks to “grasp industry development opportunities” and “further consolidate its leading position,” said the filing.

The project will involve the construction of “large-scale continuous industrial tire pyrolysis production lines and supporting equipment,” with a planned construction period of no more than 12 months.

Niutech said the expansion is driven by strong market demand, noting that demand for pyrolysis products such as pyrolysis oil and recovered carbon black is “huge” and that the “supply-demand gap continues to widen.”

According to the group, the upgrade is “imperative” as the site’s existing capacity cannot “meet rapidly growing market demand.”

Niutech company said it has already secured land for the project and completed part of the required filings, with further development to proceed as planned.