MUNICH — Recovered carbon black (rCB) producer Pyrolyx A.G. has signed a non-binding letter of intent with Continental A.G. to set up a supply agreement for its recycled product.
The value of the contract, which calls for the supply of up to 15,000 metric tons per year of Pyrolyx's rCB over five years to Conti, was not disclosed. Conti did not comment independently on Pyrolyx's news release.
If a final deal is signed, Pyrolyx will supply Conti from its existing plant in Stegelitz, Germany, and its plant in Terre Haute, Ind., which is due on-stream in June. It also calls for the development of additional Pyrolyx manufacturing capacity in eastern Europe by late 2021.
The parties may increase the scale of the contract beyond the initially stipulated annual tonnage, Pyrolyx said, should demand rise over time.
Thomas Redd, CEO of Pyrolyx USA, said this deal — which represents the equivalent of 4 million scrap tires — "validates Pyrolyx's process and products." Mr. Redd also said the deal represents the elimination of more than 32,000 tons of CO2 emissions compared with current carbon black manufacturing techniques.
Pyrolyx A.G. CEO Michael Triguboff noted Pyrolyx has been supplying Continental for the past three years.
Munich-based Pyrolyx A.G. is in the process of moving its headquarters to the U.S., into facilities under construction in Terre Haute, Ind.