Newcastle’s Cryochem Tyre Recycling Plant Gains Government Backing

The KwaZulu-Natal Legislature’s Quality of Life Portfolio Committee visited Cryochem in Newcastle on Wednesday, 11 June 2025, to assess the progress of a public-funded tyre recycling project that has drawn attention for its approach to waste management and job creation.

Cryochem, founded in 2017 by local entrepreneur Zamokuhle Sbeko, operates a recycling plant that converts scrap tyres into alternative fuels and other by-products.

The company uses pyrolysis, a process that breaks down rubber in the absence of oxygen, to produce pyrolysis oil, carbon-black, and various non-ferrous metals, including copper, aluminium, brass, gold, and silver.

The factory, located in Newcastle, employs more than 20 workers and uses its own refined pyrolysis oil to power its machinery. Pyrolysis oil from the plant is also refined into diesel, petrol, tar, and fuel oil, while the carbon-black is repurposed for use in water purification and mask manufacturing. Rubber crumbs and powders produced on site are used in flooring materials and playground surfaces.

During the visit, Sbeko explained that while Cryochem had demonstrated consistent growth, the business was facing a number of operational challenges.

Chief among them was the need for additional machinery capable of significantly increasing production capacity. He noted that, in order to compete internationally—particularly in markets such as Germany, France, and Canada—the company would need to produce more than 100 tonnes per day, a volume currently out of reach.

According to Sbeko, scaling up production would allow Cryochem to expand its client base and improve its prospects for provincial and national growth. He added that increased output could position the company for broader government support and potentially open the door to international operations.

As part of the ongoing discussion, a representative from the Office of the Premier emphasised the importance of local government involvement at a municipal level.

Strengthening local support, the representative said, could help ensure that the Newcastle community benefits more directly from Cryochem’s development and the economic opportunities it brings.

Sbeko first applied for government funding in 2019. Since then, Cryochem has received around R7 million from the Department of Forestry, Fisheries and the Environment and the Youth Fund Desk in the Office of the Premier. According to the KZN Legislature, the company is considered a flagship project within the province’s green economy development agenda.

The oversight visit was led by Portfolio Committee Chairperson Fikile Masiko, who said the committee’s focus was on ensuring that youth empowerment funds were being used as intended.

“We are happy to find Cryochem developing and will look at supporting the company in the future, and will conduct further oversight visits to ensure that all the necessary systems are running smoothly and effectively and look at what further support is required to further enhance job and economic developments,” said Masiko.

She also noted that the company currently pays approximately R120,000 per month for its premises. Steps would be taken, she said, to explore how ownership of the facility could be secured to reduce operational costs and allow Cryochem to reinvest in expanding its workforce.

Furthermore, the committee observed that the factory is now processing shredded tyres with rubber content ranging from 80% to 100%, while retaining bead steel to enhance output.

Cryochem’s products are packaged in one-ton bags or containers, tailored to client needs, and pyrolysis oil is supplied in volumes starting at 1,000 litres for use in heating and diesel engines.

A company like Cryochem holds the potential to shift Newcastle’s industrial landscape by fostering a localised green economy that links waste recovery with energy and materials production. By reducing dependence on landfill sites and creating marketable outputs from waste, the business model aligns with circular economy principles while offering tangible economic gains for the surrounding community.

If properly supported, Cryochem could serve as a platform for developing technical skills, attracting investment in clean technologies, and building an industrial base rooted in sustainability. Its growth could generate further employment across production, logistics, and downstream manufacturing—laying the foundation for long-term, inclusive economic development in the region.

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