An American engineering company is seriously searching for South African partners with whom it will jointly establish a recycling plant worth $25million anywhere in the country in order to take advantage of the dumping of millions of old tyres around South Africa which does not have a tyre recycling programme.
This company recycles old tyres from cars and trucks as well as rubber from old conveyor belts. These are converted into petrol and diesel. Therefore, it takes all the tyres from dump sites, recycles them into energy which can be reused within the local industries. The wires from the tyres are extracted and turned into steel.
Having presented to numerous giants in the South African mining and engineering industries, this company?s technology has been a big hit with major South African companies like BHP, de-Beers, Goldfield, tiger wheel & tyre and many other giants who have heaps of conveyor belts and tyres to dispose of, freely.
With 3 million vehicles, the taxi industry alone produces over 12 million waste tyres per annum.
This American company will bring the plant worth $25million to south Africa by itself. In order to protect itself against exposing itself to the risk alone, it requires that the South African partners must provide invest R25 million (10%) to be equal partners (50/50).
To put a cherry on top, this company is prepared to buy all the produced oil if there is no demand locally. This is because the oil will be produced in rands and sold in American dollars.
However, it is hoped that the oil can be sold to giants like Eskom, Coega, Anglo?s various mines, De Beers as well as the farming community who collectively utilize close to 100 million litres of diesel per year.
The plant is able to handle 200 tyres per month (2, 5 million tyres per annum) and thus produce 4 000 gallons of oil per month (50 million gallons per annum). Multiply these numbers by the current price of diesel & petrol and you will see the value of this deal.
If there is suddenly a shortage of tyres that occurs in south Africa as the result of the success of these plants, there is ample stock that can be imported from America into south Africa.
It is for this reason that empowermentsa & Deals-SA are putting together a consortium of 9 (nine) South African companies from anywhere in the country. They should be able to provide guarantees of a minimum of R5 million each.
Each company that puts up the R5 million will have the exclusive rights to a particular province wherein it will do the recycling. These provincial companies can also convince their local municipalities into job-creating partnerships that are a source of income for the local industries.
Once the first plant is in operation and the companies have the remaining R20 million cash in the bank, it will be easier to convince the IDC and NEF to top it up for more such plants across the country as well as SADC.
Parties that qualify must provide their profile and their details after which they will be invited to an exclusive presentation. To leave details, please click here
