Competition

When investigating competitors to LEVGUM’s de-vulcanization technology one will find a great variety of different technologies. This does not consider technologies for recovery of energy, such as pyrolysis, glowing of rubber to create products, fine graining rubber to be used as filler etc.

Creating a large table of all the de-vulcanization technologies will make it long, hard to read, incomprehensive and therefore, in our view pointless. One may find reports and scientific work spreading over tens or even hundreds of pages discussing and try to compare such technologies. It gives no practical method so required when coming to consider a business.

Moreover, when adding all other technologies for rubber recovery one is exposed to a vast world with no guiding lines to find one’s way in it.

Instead, we aim to list here a few key questions anyone who has interest in entering the field of rubber de-vulcanization should ask. When having the answers to these questions one will be able to verify if the technology is Industrially scaled; cost effective; has good properties and was inserted to high end products such as tyres; are there any environmental issues involved in the entire production process; what the suggested business model is; and does it suit the interested party; etc.

We give LEVGUM’s answer to each of these questions. We urge any potential licensee to check this against any technology they may consider as competing with LEVGUM’s technology and make their own judgment. 

Any alleged competitor should be asked if starting this month, they can supply 200MT/month continuously.

LEVGUM can do so starting immediately.

Any alleged competitor should be asked what the variable cost is to produce 1MT of de-vulcanized rubber using their technology? Including realistic cost of raw material, i.e., rubber crumb in the relevant size, cost of electricity and labor. And, on what Industrial scale these figures are based?

LEVGUM’s cost is (USD) $500 per 1MT. Including all the above. Based on 17 years of production day in and day out of hundreds of MT per month. 

Any alleged competitor should be asked if their de-vulcanized rubber been implemented in OTR, truck and passenger tyres?

LEVGUM can state its DRC (De-vulcanized Rubber Compound) has been implemented successfully in Solid tyres, truck and OTR tyres and passenger tyres for many years now.

Any alleged competitor should be asked if their technology is indeed a green one. That in no stage this technology harms the environment. Including when preparing chemicals to be used in it, sewage left, emissions made during the process or processes required to produce material for the de-vulcanization process.

LEVGUM process is a dry chemistry process. It has no leftovers, no sewage, and no emissions. The chemical required for the process (called EDV the acronym for Ecological De-Vulcanizer) has also been made in a dry chemical process leaving no sewage and creating no emissions. The materials used for making this EDV are off the shelf chemicals produced by millions of MT per year for a variety of uses.

Any alleged competitor should be asked what is the type of business model they wish to establish. A license; selling the de-vulcanized rubber; partnership; building the facility; etc.

LEVGUM grants licenses. We do not charge a license fee but sell EDV in advance in order to create commitment (shelf life of the EDV is for many years).

Any alleged competitor should be asked what is the expected ROI time on the investment made in adopting their technology in a specified geographic market.

LEVGUM can safely state, based on licensees selling prices, investments made and with enough safety margins, over almost two decades, that when adopting its technology ROI time is expected to be shorter than 3 years.

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