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Malaysian company to build tyre recycling plants in US at cost of $50m

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Malaysian company Octagon Consolidated has signed heads of agreement with KK Incinerator Engineering & Construction Co Ltd (KKIEC) of South Korea and Canadian Carbon Converters LP (CCC) covering the setting-up of a joint venture company with the aim of developing rubber and scrap tyre pyrolysis projects in North America.  In a statement, Octagon says the parties aim to become the dominant player in North America through the use of a more efficient, innovative and environmentally-friendly technology.

The joint venture will handle the simultaneous roll-out of three continuous-process pyrolysis plants in North America, each with a capacity of around 40 tonnes per day. Estimated cost will be US$ 50 million (Euro 34 million).

Pyrolysis is the process of decomposing organic materials by heating in the absence of oxygen. In view of the huge potential of the North American market, the joint venture will have the potential to grow into a company with a market capitalisation of US$ 1 billion over the next five to seven years, according to Octagon.

The signing ceremony was held in conjunction with the launch of a 10-tonnes-per-day continuous-process pyrolysis plant at Busan in South Korea, a project which is supported by the Korean government.

This marks Octagon’s second overseas venture after its subsidiary, Green Energy and Technology Sdn Bhd (GET), entered into an agreement to design, engineer, construct, commission and operate a US$ 115 million (Euro 78 million) waste-to-energy plant with a capacity of 200 tonnes per day for Sri Lanka’s Colombo Renewable Energy (Private) Ltd.

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