mvw etra 2016 slideshare

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


Industry overviewIndustry overview


Some numbersSome numbers


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

© WOLFERSDORFF CONSULTING vonwolfersdorff@googlemail +49 176 447 675 68

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


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


Truck/bus

Toptier

RussianContinuous,largescale,

Lowcost geography

TypicalrCB

discount

Evolution of value creation:Evolution of value creation:


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:

3/22/16 © WOLFERSDORFF CONSULTING vonwolfersdorff@googlemail +49 176 447 675 68

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?


• 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)


• 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?


Vision for futuredevelopment

Vision for futuredevelopment


• 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


Thanks! Any questions?Thanks! Any questions?


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

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