Waste Tyre Recycling Processing Plant

Bonjour,

Le projet suivant correspond à vos critères d'investissement

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Title: Waste Tyre Recycling Processing Plant

Rivombo was started by 3 professionals boasting Chem. Eng, Law and CA skills. Registered as a bidder of REDISA, the company secured Partnership and Export Agency Agreements with some of the most reputable waste tyre recycling companies in the world.

Proposal Summary:

As a subscriber to the government’s Recycling and Economic Development Initiative of South Africa (“REDISA”) plan, Rivombo Future Technologies ("Rivombo") has been invited to bid their technology package by 30 September 2013. This plan aims to remove waste tyres from South Africa by subsidising the collection and recycling process by attaching a value to scrap tyres. A key element of the REDISA plan is to specifically target small businesses to run waste tyre processors. Funds will primarily be obtained from a levy of R2.30/kg of tyres imported and manufactured to tyre dealers and manufacturers which are all to be registered with the program in terms of recently promulgated legislation. R0.31c of this levy will be allocated as Gate Fees for all approved waste processor plants.

Rivombo signed a Partnership Agreement with a reputable American Technology Supplier to develop a 8/ton per hour waste tyre recycling process plant specially dedicated to the production of rubber derivative products using ambient granulation technology. This is a commercially-proven technology that recovers the resource potential from tyres to produce value-add rubber products. Products include rubber granulate, fines, powder and steel in addition to the Gate Fee. The supplier will provide the design package for the local engineering procurement and construction (“EPC”) contractor to do the erection and installation work under their supervision. Local contractor will be appointed for operation and maintenance (“O&M”) of the facility. Rivombo also signed an Export Agency Agreement with an Austrian trading and manufacturing entity to sell 100% of the output of the plant to their global network at current market prices. Comprehensive Pre-Feasibility Study and Financial Analysis have been completed and are available on request.

Total Project Costs are ca. R60 million, with a relatively low 70/30 Debt: Equity structure proposed, given the high returns expected. Rivombo is currently seeking to engage with a limited number of potential investors to raise competitive Equity Funds through Letters of Support as part of the bid documents to be submitted on 30 September 2013. Loan guarantees from development-friendly institutions are considered to secure non-recourse debt facilities through an SPV.

The Deal:

Preliminary figures indicate a 32.61% Project After-Tax IRR within the REDISA contract limit of 5 years (+ 1 year construction), with 49.47% Shareholder IRR using a conservative Dividends Policy. A minimum of R0.09c/kg profit is estimated per tyre recycled during the first 12 months (using a conventional US Environmental Protection Agency profit formula), reaching R0.25c/kg at the end of this period. We are offering a significant stake in the business, up to 49%, once the bid is successful.

Capital Needed: 1 530 000 € (R20,000,000 ZAR)

Minimum Investment: 382 500 € (R5,000,000 ZAR)

Business Stage: Pre-Startup/R&D

Region: South Africa

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Meilleures salutations,

Mike Lebus
Réseau Financier Français
www.reseaufinancierfrancais.com
"Un lien privilégié entre les Entrepreneurs et les Business Angels"