Beijing – China’s New Universal Science and Technology is to raise up to €77 million (599 million yuan) through private placement to build a rubber recycling plant, the company announced 13 March.
Headquartered in Beijing, New Universal was set up in 2003 as a provider of automation equipment and smart manufacturing systems for rubber industry.
The new plant will be located in Qingtongxia, Ningxia province and will have the capacity process 200 kilotonnes per annum (ktpa) of scrap tires annually using New Universal’s homegorwn pyrolysis technology, said the announcement.
The unit will have a €101 million total investment and will receive €58 million from the raised capital.
The rest of the funds will be allocated to research on smart manufacturing and related 5G applications as well as working capital.
In addition, the company plans to set up two more rubber recycling plants with 60ktpa and 100ktpa annual capacity in China over the next three years.
New Universal also aims to team up with at least two major tire makers from China or overseas within the next five years on deep processing of carbon black recycled from scrap tires.
According to New Universal, China’s scrap tire prices has fallen from €282/tonne in 2011 to €64/tonne in 2018 due to increasing stringent environmental regulations.