Blue Diamond Technologies forms JV in China for recycled rubber
Joint venture will establish as many as 13 rubber recycling facilities in China
WINNIPEG—Blue Diamond Technologies Ltd. and Insigma Technology Co. have formed a joint venture to establish as many as 13 facilities to produce reusable crumb rubber, clean steel and fiber from used vehicle tires.
The joint venture, with initial funding of US$8 million and exclusive rights for use of Blue Diamond’s process in China, will be completed in January.
Winnipeg-based Blue Diamond Technologies Ltd. provides the venture with a clean process for breakdown of used tires into crumb rubber without need for harmful environmental emissions.
The first facility, located in 60,000 square feet in Hangzhou, China, will begin operations during the fourth quarter of 2012.
The venture may attract as much as US$100 million. The Chinese government will supplement investments with public incentives.
The crumb rubber will replace virgin materials currently required by Chinese companies producing rubber and polymer goods such as vehicle tires, gaskets, car parts, consumer products, and injection mold items.
The Hangzhou facility will employ a water-based technology for separation of a steady flow of old tires into clean, reusable industrial material. The process includes capture and re-use of the water used for materials separation.