Developments in the global tyre pyrolysis industry
Trends, challenges, opportunities & lots of passion!
Developments in the global tyre pyrolysis industry
Trends, challenges, opportunities & lots of passion!
3/22/16 1© WOLFERSDORFF CONSULTING vonwolfersdorff@googlemail +49 176 447 675 68
1. Industry overview2. Industry trends3. How can the industry grow?4. Vision for future development
AgendaAgenda
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Industry overviewIndustry overview
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Some numbersSome numbers
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77Ventures
40Operators
6Tech&Op
8Technology
23Start-Up
452ktparCBcapacity2017/18
Only 2commercialoperations selling rCB:
Reklaim (US)and CCT(D)
60Continuous
%
3Activatedcarbon
Source:Wolfersdorff ConsultingVentureDatabase
Sweet spots for pyrolysisSweet spots for pyrolysis
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USA231ktpa
15ventures
UK33ktpa
6ventures
Bulgaria5.5ktpa
4ventures
Germany14.5ktpa4ventures
France5ktpa
3ventures
Netherlands5ktpa
3ventures
Slovak Rep.2.6ktpa
3ventures
Switzerland3.9ktpa
2ventures
Cacacity by2017/18andnumberofventures. Source:Wolfersdorff ConsultingVentureDatabase
Industry trendsIndustry trends
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0€/t
200€/t
400€/t
600€/t
800€/t
1.000€/t
Tyregranulatecost rCBproductioncost N772,N330priceMar'16
rCBproduction cost vs.ASTMvCB prices
Finemilling etc.
Average
Shifting to value:Low oil prices helpShifting to value:
Low oil prices help
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Truck/bus
Toptier
RussianContinuous,largescale,
Lowcost geography
TypicalrCB
discount
Evolution of value creation:Evolution of value creation:
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Technologytrigger
Peak ofInflated
expectations
Trough ofDisillusionment
Slope ofEnlightenment
Plateau ofProductivity
Plateau will be reached in less than 2 years 2-5 years 5-10 years obsolete
Thermal valorisation
Tyre shredding, granulation
Economies of scale
Control & reduction of inorganics
Reactivation of carbon & silica
Pyr oil as feedstock
rCB into specialty applications
rCB into N772
Upgrading: Milling & pelletising
Gartner Hype Cycle
Passenger car tyre applicationsOther tyre applications
Activated carbon
Graphite
Raw char into material valorisation
Additivation
rCB blends
9
• Oil price dependency or not?– Fact: Most non oil-based tyre raw materials impacted
• PLATTS 1% Rotterdam in pricing formulas does not cover all types of feedstocks
• Hard blacks surcharge 80-144 €/t
• Soft blacks surcharge 88-158 €/t
Oil price dynamics:Oil price dynamics:
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Page 1 of 4
Media Contact: Lorenzo Fernandez +1 732-982-8210 [email protected]
ORION ENGINEERED CARBONS TO IMPLEMENT A “CARBON BLACK OIL INDEX
SURCHARGE” AS OF APRIL 1st, 2016 FOR ITS RUBBER CARBON BLACK SEGMENT IN EUROPE
Luxembourg, March 7, 2016 – Orion Engineered Carbons S.A. (NYSE: OEC), a
worldwide supplier of Specialty and High-Performance Carbon Black, announced today
that effective with shipments beginning April 1st, 2016, Orion is implementing a “Carbon
Black Oil Index Surcharge” for its Rubber Carbon Black Business Line segment’s sales
into Europe.
Since its formation, Orion has been committed to be a stable and reliable partner to the
rubber industry in providing the highest quality Rubber Carbon Blacks at competitive
prices. In order to continue this commitment when facing the extraordinary energy
market developments of today, Orion is introducing a “Carbon Black Oil Index
Surcharge” to supplement its existing formula priced agreements for all rubber
customers in Europe. Due to the impact of energy market developments further described below, current
Carbon Black sales prices no longer adequately cover Orion’s variable costs of
Orion Engineered Carbons S.A. 6 Route de Trèves L-2633 Senningerberg (Municipality
of Niederanven) Grand Duchy of Luxembourg www.orioncarbons.com
News Release
How can the industry grow?How can the industry grow?
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• Moveaway from „cheap &cheery“offer• Develop unique value adding products specific toyour process
• Define niches of uncontested market space• Balancebetween volume business (ramping up)and value business (mid to long term)
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• 110ktpa rCBcapacity inEurope(existing &planned 2017/18),equal to typical virgin CBplant
• Keen growth ambitions:„Doubleevery year“,„20plants inEurope“etc.
• Competitive reaction from tier 1carbon blackmakers?
• Pricewar=spiralof death!Tier1CBmakers havelonger breath to overcome adversities
How much can the pyrolysis industry grow?
How much can the pyrolysis industry grow?
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Vision for futuredevelopment
Vision for futuredevelopment
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• Association of ventures, labs and rCB consumers (e.g. in the past GY, Cooper Standard)
• Assuring quality & quality consistency through selection and blending
• Joint research and application development• Achieving economies of scale for rCB and pyr-oil • Industry and government lobbying
Collaboration inco-operative/consortium
Collaboration inco-operative/consortium
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Thanks! Any questions?Thanks! Any questions?
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Martin von WolfersdorffWOLFERSDORFF CONSULTING Sourcing - Match Making - Market Intelligence –Sales Acceleration - Strategic Planning - LinkedIn Mail [email protected] +49 176 447 675 68Skype martin.von.wolfersdorff