RAW MATERIAL – FEEDSTOCK
One of the key elements of success is securing sufficient feedstock in adequate quality.
Egypt has no real Waste Management Strategy in Place.
So far, the consumed oil used to be burned and heated with, but now it has been outlawed due to the catastrophic impact and conditions, particularly in the cities.
Mainly government owned and large producers of used oil are keen to find a way of disposing of it.
TRC has been approached by multiple entities willing to dispose of the toxic used oil. Typically, the suppliers are car garages, public transportations, defense, industries, etc. using following products; Lubricants (engine, turbine, gear)
✓ Hydraulic Oil – fluid
✓ Metal Fluid – cutting, rolling, quenching
✓ Insulating Fluid – transformer, switch
✓ Thermic Fluid
BLENDING – VALUE ENHANCING ADDITIVES
Base Oil is in high demand because it is the base component for various types of lubricants:
BASE OIL + ADDITIVES = LUBRICANT
By operating a blending facility, TRC will be producing READY-TO-USE Lubricants, driving the output higher up the value chain.
Function of lubricants:
✓ Lubricants – friction reduction
✓Cooling – heat transfer
✓ Cleaning – detergency
✓ Noise dampening – noise reduction
Sealing – prevent leakage
The discussions, with numerous global brands (additive suppliers), are ongoing (Shell and Lubrizol – a Berkshire Hathaway company, being some of them).
Having the ability to produce the highest grade of Base oil, the products can be labeled as produced out of virgin oil and not re-refined waste oil.
ECONOMICS OF RE-REFINING
Robust demand for the product in the local market, but also export possibilities
Viability of re-refining processes are dependent on economy of scale
Ability to collect and transport the feed stock (waste oil) – license acquired
Re-refined oil prices are affected by following variables:
Used oil feed stock cost
✓ Availability
✓ Transportation cost
✓ Re-refining process used
Regulatory compliance to dispose of residues
✓ Scale of operation
Other points, which also affect economics are:
✓ Crude oil prices (correlated)
✓ Residue / bottom disposal cost
✓ Clean up liability
CONSERVATIVE ASSUMPTIONS – SAFETY BUFFERS
INCORPORATED IN FINANCIALS Capacity of the production is kept at max 70% Operating days are kept at 300/year Ratio for lubricant production is kept at 80% base oil / 20% additives Tax exposure is deliberately kept at 40%, which is far too high for an operating company in Egypt Working capital is deliberately kept at high 20% of sales Prices of Base oil are calculated on solvent technology. The hydrogenation technology, which will be applied, is state-of-the-art. It has close to zero environment impact and produces superior Base oil, and consequent, a higher market price Big part of the feedstock will be collected for free
FUND UTILIZATION
Upgrade of the technology to hydrogenation process
Blending plant including bottling facility
Buyback of minority shareholders
Commissioning of the facility
Working Capital
OTHER TOPICS:
Expansion in Sudan, Tunis, Syria, Lebanon, UAE, Nigeria and respective partners
Path leading TRC to 1,00MT/day production
Cooperation with a car producer with one of the largest sales in the region and branding lubricants
Company Structure
Integrity Properties
Our capabilities and intellectual capital are enhanced by our deep industry expertise and collaborative approach.
Privacy and Safety
The firm’s professionals help clients optimize their businesses, improve their operations.
Quality Services
high quality services that meet or exceed customer expectations whilst remaining economically competitive.
Innovative Solutions
We provide efficient and innovative solutions and make workable provision.
Experienced staff
Our dedicated, customer-oriented provide a personal and professional service, with high quality.
Exporting
We offer Logistics solutions to our Exporting customers, all needs to deliver in time.
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