The document provides an overview of trends, challenges, and growth opportunities in the global tyre pyrolysis industry, highlighting key metrics, market capacities, and advancements. It discusses the necessity for the industry to shift from low-cost solutions to unique value-added products and address oil price dependencies. Future development is envisioned through collaborations among ventures, laboratories, and stakeholders to ensure quality and achieve economies of scale.

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
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Skype martin.von.wolfersdorff