By Matt Tomsic
Published June 27, 2012
A startup recycling company has chosen Charleston County for its global and domestic headquarters as the company prepares to raise $50 million and go public.
Pyrotec Inc. has chosen Freshfields Village at the crossroads of Johns, Seabrook and Kiawah islands as the location for its headquarters, and the company will initially focus on extracting oil and other raw materials from plastics and tires, according to a news release from the S.C. Department of Commerce. Officials expect the company to invest $10 million and create 75 jobs. Two Upstate companies, TRC in Greenville and Johnson Development in Spartanburg, also support Pyrotec with environmental engineering and land management consultation.
“We’re still in the startup phase,” said Walter Hahne, vice president of logistics and supply chain for Pyrotec. “I guess you could say everything is still in process.”
The company has two facilities in Taiwan that recycle 40 tons total per day, according to a filing with the Securities and Exchange Commission. Hahne said crews are building another plant in Australia and a fourth facility will be located in the Lowcountry.
In the SEC filing, Pyrotec says it needs to raise at least $50 million during the next 12 months to continue operations. Hahne said the company will have its funding resolved by early August, but the SEC filing notes: “Neither the company nor any of its advisers or consultants has significant experience in raising funds similar to the $50 million estimated to be required.”
Pyrotec plans to raise the money through sales of 5 million shares of stock, according to the filing.
“We’re going to go public; that’s the whole aim behind all this,” Hahne said, adding stock won’t only be offered to capital investors. Now, a California finance firm, World Venture Group, owns nearly 84% of the company, according to the SEC filing. The company intends to approach hedge funds, venture capital groups, private investment groups and other institutional investment groups.
The company plans to use roughly $14.9 million for management, sales and marketing; $27.7 million will be used for infrastructure and software fees; and $4.4 million will be spent on legal, accounting, rent and other expenses. The remainder of the $50 million will be held in reserve.
Hahne said an investor and board member lured Pyrotec to Charleston.
“Charleston is certainly a very charming, interesting place,” Hahne said, adding the area is a good location to host customers. “We’re already established in the area; that makes it easier to set things up. One of the (sites) will be in that area anyway.”
Pyrotec’s director and secretary, Mark Rynearson, also worked in Charleston at Bosch and Behr America, according to the SEC filing. Now, Rynearson owns a consulting business in Arkansas, where he analyzes manufacturing processes.
Pyrotec will begin hiring for its positions in July, according to the Commerce Department news release.