Pyrolyx AG: Cold commissioning of new facility and strategic acquisition of End of Life Tire Processing Company
Pyrolyx AG (ASX: PLX, Pyrolyx or the Company) has completed cold commissioning of the major systems at its recently constructed Terre Haute facility. Cold commissioning is the full operation of machinery and systems, which is done in preparation for hot commissioning and initial production.
The successful operations included the heating up of all 20 ovens in Pyrolyx's unique system, operating the oil production system, all product-conveying systems and the finished product drying system. Over the coming weeks Pyrolyx expects to conduct hot commissioning of all systems and commence production.
Pyrolyx is also pleased to announce that its subsidiary, Pyrolyx USA, Inc. has completed the purchase of J&R Used Tire Service, Inc. (J&R).
The transaction was originally announced on February 1, 2019 and consists of an asset purchase of J&R's facilities and equipment, including its existing, permitted tire processing facility in Newport, Indiana. The total asset purchase price was $4.04 million. The Newport facility is 45 kilometres (28 miles) north of Pyrolyx's existing facility in Terre Haute Indiana.
As one of the region's largest tire processing businesses, J&R is an important strategic acquisition for Pyrolyx that allows the Company to secure the supply of waste tires to both the existing and the future additional facility in Terre Haute, Indiana. The combination of a profitable tire collection and processing business and Pyrolyx's world-class technology for recovered carbon black production allows the Company to offer customers a 'cradle to cradle' solution that is both economically viable and environmentally sustainable.
Rodney Rogers, the former owner of J&R and now Pyrolyx's Vice President of Business Development and Feedstock Supply said "We at J&R are very excited to be joining the Pyrolyx team. The facility and customers we have developed over the last 11 years will provide Pyrolyx's existing and future Terre Haute facilities with high quality end of life tire feedstock."
Thomas Redd, CEO of Pyrolyx USA said, "Vertically integrating into tire collection and processing allows Pyrolyx to provide a complete solution to customers, including global tire manufacturers. This model of securing feedstock to our recovered carbon black manufacturing will allow Pyrolyx to profitably grow and ensure a high-quality and consistent raw materials as we grow across the US."
ENDS About the Pyrolyx Group Pyrolyx AG (ARBN: 618 212 267) is the world leader in the extraction of rCB (recovered carbon black) from end-of-life tyres. rCB is used to manufacture new tyres as well as in the plastic, technical, rubber and masterbatch industries.
Shares in the Company (WKN A2E4L4) are listed on the stock exchanges in Duesseldorf, Frankfurt and the ASX (Australian Stock Exchange) under the ticker PLX (ASX: PLX). For more information, please visit www.pyrolyx.com.
08.10.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.deLanguage: English Company: Pyrolyx AG Landshuter Allee 8-10 80637 München
Germany Phone: +49 (0)89 54558 310 E-mail: firstname.lastname@example.org Internet: www.pyrolyx.com ISIN: DE000A2E4L42 WKN: A2E4L4 Listed: Regulated Unofficial Market in Dusseldorf (Primärmarkt), Frankfurt EQS News ID: 886513 End of News DGAP News Service