Opportunity Snapshot
- Country: South Africa
- Industry: Manufacturing
- Stage: Seed
- Investment size: $15,000,000 / min. $10,000,000
- ROI: 20% in 10 years
- Type of investment: Equity
Investment Opportunity
Recycling waste tire to Coke,Oil,Rubber crumbs,fiber,steel wire,gas. Purchase Thermolysis technology plant,land for construction,lab test equipments. Offer investor 20%.
Recycling of waste has fundamental significances, it addresses environmental pollution and health hazards, provides economical valuable produces and creates sustainable employments to name the few.
Through waste tire recycling thermolysis technology processes Carbon black of different grades used as reinforcement agent in tire industries, conductive of electrical cables wires,coating, UV, tinting, printing inks and toners to name the few.Oil of different densities and compositions used in refinery industries to produce diesel and other oil lubricants,gas used to generate electricity and heat. Fiber used as reinforcement in civil engineering industries. Steel wire resold to steel manufacturers to be refined to steel.Target Market for Carbon Black:Tires and Industrial Rubber Products: Carbon black is added to rubber as both a filler and as a strengthening or reinforcing agent. For various types of tires, it is used in innerliners, carcasses, sidewalls and treads utilizing different types based on specific performance requirements. Carbon black is also used in many molded and extruded industrial rubber products, such as belts, hoses, gaskets, diaphragms, vibration isolation devices, bushings, air springs, chassis bumpers, and multiple types of pads, boots, wiper blades, fascia, conveyor wheels, and grommets.Plastics: Carbon blacks are now widely used for conductive packaging, films, fibers, mouldings, pipes and semi-conductive cable compounds in products such as refuse sacks, industrial bags, photographic containers, agriculture mulch film, stretch wrap, and thermoplastic molding applications for automotive, electrical/electronics, household appliances and blow-molded containers.Electrostatic Discharge (ESD) Compounds: Carbon blacks are carefully designed to transform electrical characteristics from insulating to conductive in products such as electronics packaging, safety applications, and automotive parts.Toners and Printing Inks: Carbon blacks enhance formulations and deliver broad flexibility in meeting specific color requirements.Target Market for Oil refinery industries to produce all kinds of Oil and Hydrocarbon.Gas is regenerated to produce electricity and heat to be used by the plant and excess electricity will be sold to municipalities, communities and in neighbouring industries. Fiber is used as reinforcement of concrete and will sold in civil engineering industries. Rubber crumbs will be sold to mats, artificial turfs, rubber bricks, industrial mats, equestrian, Anti-slip rubber, interlock rubber, rubber mixed asphalt etc.production plants. The taxes, income taxes, pay as you earn and so forth will be paid by our company to boost the economy of the our country. Our company’s goal is to produce high quality produces which will be exported around the world, by including research and development department in our company partnering with universities in the fields of mechanical engineering, chemistry, chemical engineering and science for the enhancement of innovation. Advancing this approach would open doors to new markets and increase our sales that will improve the return on investments for our investors.The Recycling and Economic Development Initiate of South Africa (REDISA) which it Integrated industry waste tire management plant was approved by Department of Environmental Affair which a company s signatory,apart from training among others had been requested to shred 10800 ton per annum of waste tires.
Competitive Advantage
Though waste tire recycling is currently in particular the Thermolysis technology has limited competitors and its high quality products it processes in South Africa.
We have companies we have identified as our competitors:Dawhi Rubber Pty Ltd, SA Tyre Recyclers, Bandag SA, Bridgestone SA Pty Ltd, Osho SA Pty Ltd, West Plan Epping.
Our Thermolysis technology is a thermo-chemical decomposition of material at an elevated temperature without the participation oxygen. With this process any kind of polymer is decomposed into basic constituents, which can be easily split into better recovery,our system emits no Co² during production process. Thermolysis technology is able to fuel car, light home and create new products out of old polymer. In other words it is possible to create oil,coke, gas, fiber, rubber granulates and steel wire and heat.
Thermolysis process is characterized by an indirect heat transfer system of electrically heated resistance that are acting on granulates placed in a vertical reactor,which are under oxygen exclusion, at a temperature between 500℃ and 850℃, hydrocarbon compounds are decomposed and rebuilt in a succession of short chain compounds.The temperature profile within the reactor gives the possibility to change the specific composition of the vapour and coke. The most important part of the machine is the patented vertical reactor, this aggregate allows to have a full control of the thermal energy. As the heat is made by heating elements and electricity, the system can have a complete control over the heat while emitting no Co² during treatment, it means that if one kind of waste requires a temperature of 555℃ to create a specific raw material required, it is possible to do so. Thermolysis process can operate on a wide range of temperature 500℃ to 850℃. this competence is more important as it allows to create the right atmosphere in order the oil required. It also allows to have a completely finished thermolysis that ensures clean and marketable raw materials. The system is fully automated, a combination of more than 150 sensor and specially developed software that makes it possible for the plant to run on its own. Safety is one of the fundamental criterion of quality,as our system is embrassed with 190 safety sensors.The unit is designed to work 7800 hours per annum (24/7), meaning it is possible to work 3 shifts per day.
We are planning to install Oil distillation plant to produce diesel, and other oil lubricants,mats production plant and Rubber mixed Asphalt plant.
Rationale for the deal
According Recycling and Economic development Initiate of South Africa (REDISA)studies of waste tires.Redisa estimation of about 60million waste tires lying in stockpile countrywide, many of which are illegally and unsafe, or simply dumped in the fields. The Redisa integrated industry waste tire management plant approved by department of Environmental Affairs as published in the government gazette [NO35927] in November 2012, will support and promote tire recycling, providing the collection and depot infrastructure required to collect waste tires from across the entire country and delivery them to approved recyclers. Our company will process 10800 tons of waste tires per annum as per agreement reached. As said our company is capable to produce high quality any rubber products as per specification requirement of intended customer.The increase of crude oil and instability of natural rubber, had force manufacturers for alternatives and cheaper but some high quality raw materials for the manufacturing of their output. Market outlook for crude oil and natural rubber are not good to economic analyst world wide. Electricity is one of the major challenges South Africa faces as the Eskom as the main supplier of electricity has been confronted with various challenges including the use of coal which pollutes environment,discharging Co². Our system is environmental friendly and capable to create high quality product at cost effective prices. Rubber crumbs for instance is in demand Europe, USA,East Asia and in African regions. Market of the world is aware of the of the challenges faced they natural product and the development of recycled raw material.For instance rubber mats, artificial turfs, rubber bricks,sports rubber play grounds, Parks playground, children playgrounds, rubber car parts,carbon blacks, diesel, oil lubricants, fibers, steel wire and gas are in main demand on the world market.Though the recycling industry is still in the mature stage, some of market players slowly providing innovative means to engage themselves to this prestigious market.
I have 14years of work experience in the automobile assemble industry, 4years in paint-shop as spray painter within the industry, 2years in the warehouse and 8years in the quality management department. I has spent of 10years researching recycling industries in particular waste tire recycling. Learn systems used and challenges.I have met and spoke to innovator of the systems gathering information necessary at my disposal Knowledge of products produced and their challenges. I hold a Bcom degree, total quality management certificate and business management diploma.
Use of financing
Industrial Development Corporation (IDC) and Black industrial Scheme are government financial institution who are will to fund our project. Though the funding is not enough of the project of this calibre. The funds will utilized purchasing Thermolysis technology plant equipments: Planing and Engineering: Part; Plant planning, Planning concrete finding, Authorisation, concrete finding,supervision construction 4months, supervision calibration work 2month.Conveyor,tubes,valves and steel construction:Parts;fittings,valves and pressure reducer, Granulator elevator + charging screws,steel construction and stairways, tubes, coke charging screws, granulate silo. Reactor,controls and Carbon parts: Parts;Thermolysis reactor,isolation,controls and software, coke cooler, coke container. Condensation: Parts; Ventury Pumps, condensator step1,condensator step2,oil pump1,oil pump2, oil pump3, heat exchange heavy oil1, heat exchanger heavy oil2,heat exchanger light oil1,heat exchanger light oil2,oil negative cooler,glycol circuit includes tank and pumps. Gas treatment and energy generator: Parts;Emergency torch, gas cooler, gas compressor ink cleaner, gas generator.Cooling system:Parts;cooling system for 10 000 tons per unit,container for cooling system, cooling water tank.Processing equipment;Parts; carbon mill for carbon black production, shredding unit 10000 ton per annum,Maintenance lift + big pack lift, gas storage tank, compressor for monitoring air,oil distillation unit for 500 l/hour,merlo telehoist load lugger. Cost R240.009.370.00. Commercial vehicles: tipper truck, tractor,20000 litre tanker, heavy truck loader, medium truck,light truck,excavator, bakkie,haistor.Cost R19.282.016.46.Office equipments;multifunctional printer, laptops,conference table, locker drawers, office chairs, visitor chairs,filing cabinet, stationery cupboard, desks,Cost: R2.731.775.90. Stationery and PPE equipments.Stationery,PPE,canteen equipments: Cost R179.688.00.Packaging products: paper bags,nylon bags,oil teto tanks, Drums:Cost R12.000.000.00. Technical tools: screwdriver set, Hummers,spanners, ranches, sockets,air powered tool,benches; Cost R385.488.40. Fire fighting equipments; Costs R130.970.00. Land for construction of Plant: Costs R57.250.000.00. Company liability insurance: R1.980.00. Once off. The company offers 20% of company shares for a period of 10 years at R3000 a share price . Company will be able to pay at least pay 1 billion in dividends in the 10years. And return on investment at 3.5%
Opportunity for the investor
The company offers 20% of company shares for a period of 10 years at R3000 a share price . Company will be able to pay at least 1 billion in dividends in the 10years. And return on investment at 3.5%. The company will be able to invest its money to Johannesburg stock exchange by 2019.Return on Investment per share at 15% per annum.
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