I am in contact with 80+ tyre pyrolysis ventures and in this presentation show global trends regarding location, technologies (Gartner Hype curve), manufacturing cost and pricing for recovered carbon black from tyre pyrolysis. I also give a vision for future developments.

1. 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!
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2. 1. Industry overview
2. Industry trends
3. How can the industry grow?
4. Vision for future development
AgendaAgenda
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3. Industry overviewIndustry overview
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4. Some numbersSome numbers
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77
Ventures
40
Operators
6
Tech & Op
8
Technology
23
Start-Up
452 ktpa
rCB capacity
2017/18
Only 2 commercial
operations selling rCB:
Reklaim(US) and CCT (D)
60
Continuous
%
3
Activated
carbon
Source: Wolfersdorff Consulting Venture Database

5. Sweet spots for pyrolysisSweet spots for pyrolysis
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USA
231 ktpa
15 ventures
UK
33 ktpa
6 ventures
Bulgaria
5.5 ktpa
4 ventures
Germany
14.5 ktpa
4 ventures
France
5 ktpa
3 ventures
Netherlands
5 ktpa
3 ventures
Slovak Rep.
2.6 ktpa
3 ventures
Switzerland
3.9 ktpa
2 ventures
Cacacity by 2017/18 and number of ventures. Source: Wolfersdorff Consulting Venture Database

6. Industry trendsIndustry trends
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7. 0 €/t
200 €/t
400 €/t
600 €/t
800 €/t
1.000 €/t
Tyre granulate cost rCB production cost N772, N330 price Mar'16
rCB production cost vs. ASTM vCB prices
Fine milling etc.
Average
Shifting to value:
Low oil prices help
Shifting to value:
Low oil prices help
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Truck/bus
Top tier
RussianContinuous,
large scale,
Low cost geography
Typical
rCB
discount

8. Evolution of value creation:Evolution of value creation:
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Technology
trigger
Peak of
Inflated
expectations
Trough of
Disillusionment
Slope of
Enlightenment
Plateau of
Productivity
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 applications
Other tyre applications
Activated carbon
Graphite
Raw char into material valorisation
Additivation
rCB blends

9. 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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Media Contact: Lorenzo Fernandez+1 732-982-8210lorenzo.fernandez@bfmarketing.com
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 Bla
prices. In order to continue
Orion Engineered Carbons S.A.
6 Route de TrèvesL-2633 Senningerberg (Municipality
of Niederanven)Grand Duchy of Luxembourgwww.orioncarbons.com
News Release

10. How can the industry grow?How can the industry grow?
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11. • Move away from „cheap & cheery“ offer
• Develop unique value adding products specific to
your process
• Define niches of uncontested market space
• Balance between volume business (ramping up)
and value business (mid to long term)
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12. • 110 ktpa rCB capacity in Europe (existing &
planned 2017/18), equal to typical virgin CB plant
• Keen growth ambitions: „Double every year“, „20
plants in Europe“ etc.
• Competitive reaction from tier 1 carbon black
makers?
• Price war = spiral of death! Tier 1 CB makers have
longer breath to overcome adversities
How much can the
pyrolysis industry grow?
How much can the
pyrolysis industry grow?
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13. Vision for future
development
Vision for future
development
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14. • 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 in
co-operative/consortium
Collaboration in
co-operative/consortium
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15. Thanks! Any questions?Thanks! Any questions?
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Martin von Wolfersdorff
WOLFERSDORFF CONSULTING
Sourcing - Match Making - MarketIntelligence –
Sales Acceleration- Strategic Planning - LinkedIn
Mail vonwolfersdorff@googlemail.com
Mobile +49 176 447 675 68
Skype martin.von.wolfersdorff