Pyrum Innovations (PYRUM) Investor Update summary

Market and regulatory developments

• Used tire recycling market is growing, with regulatory shifts in Europe reducing burning and granulate use, and increasing export, prompting calls for an export ban by 2027.

• New EU regulations, including end-of-life vehicle rules and bans on rubber granulates, are expected to drive demand for recycled materials and create obligations for manufacturers to use recycled content.

• The company is actively involved in policy discussions to shape favorable regulatory frameworks.

Technology and operations update

• Achieved TRL 9 certification, confirming the plant's technical readiness and bankability, with stable 24/7 operations and energy self-sufficiency.

• Current bottleneck in recovered carbon black (RCB) pelletizing is being addressed, with modifications underway to increase throughput.

• Expansion plans include upgrading older reactors, building new tire storage, and investing in carbon fiber reinforced plastic recycling.

• Plans include replacing the ten-year-old TAD 1 reactor with a new generation reactor to boost sales and profitability.

Commercial partnerships and offtake agreements

• Secured long-term offtake agreements: BASF (10–15 years, up to 300,000 tons/year), Continental (10 years, RCB for six reactors), and Schwalbe (10 years, RCB and tire delivery).

• Partnerships with major industry players (e.g., Vaude, Mercedes-Benz) demonstrate product adoption in textiles and automotive applications.

• Recent €29.4 million grant awarded to the Greek plant project by the European Innovation Fund.