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CBp Carbon Industries Expanding Capacity for Recycled Carbon Black

CBp Carbon Industries, based in Bratislava, Slovak Republic, is one of several companies offering new generations of tire recycling technology. According to CBp Carbon Industries, its technology permits the recycling of tires and scrap rubber into commercially viable components of steel, oil and carbon black. The company is expanding its capacity and plans to issue its stock in the United States.

From the company’s press release:

The CBp Carbon Green technology recycles 100% of used tires and scrap rubber. Approximately one-third of resource recovery results in CBp Carbon Green and the remaining two-thirds are high value oil, gas and steel. The recycling of the CBp Carbon Green also prevents in excess of one tonne of greenhouse gases from being generated for each tonne of CBp Carbon Green substituting for the normal industry carbon black.

CBp currently operates one commercial tire recycling plant in Hungary and is building a second in Cyprus. The plant in Hungary is being expanded by mid-March 2008. The plant in Cyprus is fully permitted and commercial production is scheduled to begin in August 2008.

The company reports that its recycled carbon black, marketed under the CBp Carbon Green tradename, currently sells for $1,200 per tonne. By comparison, the company’s press release states that conventional carbon black “is presently priced on world markets at approximately $1,600 per tonne (depending on the grade).”

Note: that price assumption for virgin carbon black seems high, at least for rubber grades. US prices for N-339 averaged just under $1,000 per tonne as of 4Q 2007 (large volume contracts, ex-works). So if the price of recycled carbon black is 20% higher than virgin with oil above $100 per barrel, the economics of this process seem questionable.

Here is the company’s press release detailing their plans.

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