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CBp Carbon Announces Sales Agreement for Recycled Carbon Black

CBp Carbon Industries, Inc. (Bratislava, Slovakia) has announced the signing of a 20-year sale agreement for the company’s recycled carbon black (CBp Carbon Green) with Indonesia’s Triputra Group, a supplier of raw natural rubber to the tire industry. The agreement provides that, as and when CBp can deliver, for the first ten years Triputra will take deliveries of up to 200,000 tonnes of CBp Carbon Green per year at market discount, while for the next ten years Triputra will take 500,000 tonnes per year at market discount. CBp’s deliveries are optional and it need not deliver unless it can do so profitably.

Deliveries are expected to commence during 2Q or 3Q 2009 from CBp’s first generation Phase III commercial plant in Limasol, Cyprus, which is completing its final equipment installation. The plant is expected to begin commercial production within the next 60 days and is designed for 10,000 tonnes of tire processing per year (about 1 million tires). Of this total processed volume, about 30% results in CBp Carbon Green, or about 3,000 tonnes per year.

It is not clear from the company’s press release when it plans to scale up its scrap tire processing capabilities from its current 10,000 tonnes per year to the approximately 670,000 tonnes (67 million tires) it would require to produce 200,000 tonnes of recycled carbon per year, let alone the 1.7 million tonnes (170 million tires) of tire scrap it would require to produce 500,000 tonnes of recycled carbon per year.

Here is the press release (PDF). _____________________________________

Update: In response to questions regarding the size of the announced supply contract (200 KTPY) versus the company’s actual proposed capacity (3 KTPY), a spokesperson for CBp replied as follows: “Actually we are planning to build (roll out) more and larger plants around the world. This is expected to facilitate the contract. Announcements will be made in due course.”

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