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Advanced Pyrotech Sdn Bhd (part of the Octagon Consolidated group) is spending Rggt 110 M (about $29 M) to establish a scrap tyres pyrolysis unit at Pulau Indah (Selangor province), which will employ South Korean technology, essentially continuous pyrolysis. From 43,800 tonnes/y of scrap tyres input, the plant should produce: 21,900 tonnes of recovered oil; 13,140 tonnes of carbon black and 4380 tonnes of steel. Initially, the unit will process imported scrap tyre chips, but the usage of scrap tyres from Malyasian sources will be phased in.
A substantial proportion of the output will be sold under a seven-year contract with a South Korean company. Under current market conditions, Advanced Pyrotech anticipates selling carbon black at $305 per tonne, while recovered oil is currently valued at $255 per tonne. On these assumptions, the company should realise sales revenue of $10 M from the new plant during the year to end-December 2008.
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