Recently, according to a report by the European Rubber Journal, International China Rubber Group (CSRC) has reached a cooperation agreement with Eco Infinic Co., Ltd., a Thai subsidiary of Taiwan's Sheico Industrial Co., Ltd. (SHEICO), to jointly invest in the construction of a waste tire recycling carbon black (rCB) plant on the former site of Continental Carbon Company (CCC)'s carbon black plant in Phoenix, the United States. This initiative marks a deepened cooperation between the two parties in the field of environmental protection and sustainable development, and is expected to have a profound impact on the North American rCB market.
It is reported that the joint venture aims to develop the North American rCB market and plans to commence production in 2026. The new plant is expected to become one of the largest waste tire pyrolysis plants in North America, with an annual production capacity of 30,000 tons of rCB, 35,000 tons of tire pyrolysis oil (TPO), and 2,300 tons of steel wire. The equity structure of the joint venture is as follows: Eco Infinic holds 65% of the shares, while CSRC and CCC jointly hold 35%. The specific investment breakdown is: CSRC invests US12.5million,accountingfor218.5 million in assets, accounting for 14% of the equity; and Eco Infinic invests US$39 million, accounting for 65% of the equity.
This cooperation is not only in line with the sustainable development goals of major tire manufacturers such as Michelin and Bridgestone, but also has a positive impact on the tire recycling industry. Currently, less than 1% of the carbon black used in new tire production comes from recycled tires, but with the increasing awareness of environmental protection and technological advancements, the demand for rCB is expected to surge.
Sheico Industrial, a globally renowned manufacturer of diving suits, has gradually ventured into the field of waste tire pyrolysis in recent years through the development of environmentally friendly diving suit materials. Its Thai subsidiary has been deeply involved in the production of rCB through waste tire pyrolysis for many years, and is considered a circular economy demonstration project by the Thai government, with an annual waste tire processing capacity of up to 35,000 tons. This cooperation with CSRC will further consolidate its leading position in the rCB production field.
CCC has three carbon black plants in the United States with a combined production capacity of 305,000 tons. Among them, the Phoenix plant faced difficulties due to rising investment costs and low return on investment caused by stricter environmental regulations. Therefore, CSRC decided to voluntarily shut down the plant's operations and utilize its former site for the construction of a waste tire pyrolysis plant. This initiative is expected to bring new economic growth points for both parties and contribute to promoting the carbon neutrality goals of the industry chain.
With the increasing global emphasis on environmental protection and sustainable development, the construction of waste tire recycling carbon black plants will become an important force in promoting green development in the industry. The cooperation between CSRC and Sheico Industrial will bring new opportunities and challenges to the North American rCB market, while also making a contribution to environmental protection efforts.