Project Tire recycling, a project within GreenTech Tires AB’s operations.
GreenTech invests in and builds up a recycling business first in Sweden and then in the rest of the Nordics and the Baltics, based on a patented technology from Pyrum Innovation AG.
GreenTech buys a copy of the factory currently operated in Dillingen, Germany since 2020.
Pyrum will supply the factory under a turn key agreement and provide guarantees for the function for 10 years. In addition to delivery of the factory, GreenTech will connect to and use the customer agreements that Pyrum has with the international chemical group BASF.
Part of the business plan with Pyrum is that they will invest up to 3,000,000 Euro in equity for a share of 20-25% of the ownership in GreenTech Tires AB.
Technology
GTR Tires comes in an environmentally friendly way. to recycle valuable products from used tires through Pyrolysis Technology.
GTR Tires and Pyrum Innovation AG’s agreement concerns an establishment involving the construction of a copy of their tire plant in Dillingen in the Saar area in Germany. The facility is designed to process approximately 20,000+ tons of raw material per year. Pyrum has a patent for a pyrolysis technology, which processes used tires and produces the commercial products pyrolysis oil, carbon black (recovered Carbon Black, rCB) and steel. Today, industrial production takes place in the German facility and the products that are extracted and delivered to the customer achieve certified quality.
GTR Tires buys the facility with guarantees from Pyrum that the construction and operating process work. This is to minimize the technical risk of the investment. The tire plant is planned to be in operation at the end of 2026 and, after a start-up phase, will be in full production in 2027.
Disposal/sale
GTR Tires will join the 10-year customer agreement that Pyrum Innovation AG has with BASF for Pyrolysoljan. For the distribution of Kimrök, Pyrum has supply agreements with major tire manufacturers such as Continental that we can take advantage of. For Kimrök och Stål, the company currently has long-term contract requests from customers. But we also have the option of selling these two products on the open market.
Pyrum also has agreements with other companies, including Mercedes Benz, who have the ambition to use the products in their cars, with the aim of showing that they are aware of the climate. For example, Mercedes makes plastic parts, such as door handles, for its vehicles from the products.
Raw material
In production, we use end-of-life tires (ELT) from passenger cars, trucks and larger vehicles. The collection organizations for ELT in Sweden are Svensk Däcktorningning AB (“SDÅV”), as well as Ragn Sells and in Norway Norsk Deckretur, which together handle approximately 150,000 tons of ELT per year. Today, a large part of these ELTs is incinerated in the cement industry and through incineration in heating plants. There is a political ambition and a desire on the part of the tire collection companies to reduce the proportion of ELT that goes to incineration in favor of recycling.
GTR Tires has an LOI contract with SDÅV for deliveries of the tire raw material, starting in 2026 and 10 years thereafter. With Norska Deckretur and Rang Sells, f.n. also corresponding talks about delivery agreements.
The optimal mix for recycling is approximately 55% truck tires and 45% passenger car tires. This can be achieved through agreements with the Swedish and Norwegian tire collection organisations.
Timeline
The tire recycling plant is planned to be in operation in the last quarter of 2026 and then to be in industrial production during the first quarter of 2027.
Scientific report from Hamburg University
Economical analysis by sc-consult GmbH
