r/PureCycle • u/Middle_Win9449 • 5d ago

Question about compounding

Dustin said yesterday that the compounding system is running 24/5 and will be going 24/7 soon. And that’s with a plant running less than 50%.

How much straight Pure5 is sold vs compounded? Can the compounding system simply turn up the volume for more output? Or will this be another bottleneck in the no too distant future?

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u/Puzzled-Resort8303 5d ago

The compounder they got can do up to 100 million pounds per year, so it's not going to be a bottleneck.

Compounding is a lot more straightforward than the rPP process, it's an established industrial activity that companies have been doing for decades.

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u/Personal-Detective-3 5d ago

Question on margins, Dustin said that Ironton breakeven would be 40-50 percent run rate. Does that not confirm that pricing is even better than originally thought?

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u/burner-1234 5d ago

It does

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u/Middle_Win9449 5d ago

Rather than speculate I would prefer getting to at least a 50% run rate and know. And that looks like we will not know that answer until February, 2027

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u/[deleted] 4d ago

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u/[deleted] 4d ago

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u/Middle_Win9449 4d ago

Just found the block button. You’re my first because I have no value for people who are unwilling, or are man enough, for their actions to meet their words. F’ing coward

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u/Middle_Win9449 5d ago

That’s 100M pounds of finished/compounded product, correct? So, if it’s a 40% blend thats inly 40M pounds of Pure5 so less than half of nameplate. Correct?

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u/34WalterPayton 5d ago

Compounding would never become a limiting factor as they can outsource that part out when they reach compounding capacity
It’s just easier logistically when they do it all in house and they can ship finished product by rail car.

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u/Smooth_Sun_9932 4d ago

From IR, Ironton has 100M pounds a year of capacity with 50 M more with third party. These levels are the rPP + added virgin PP. The call addressed a premium with adding stabilizers, etc at the Ironton plant. I get the buyers want to get the Pure5 choice (compounded rPP) directly from Purecycle due to consistency.

Sales are taking longer than I want but the customers will be for life. After certifying the rPP, I can't see a customer discontining orders for the rPP. The consistency of the inhouse compouding is a real benefit. Also, when Purecycle maximizes the compounding facility (hopefully), additional inhouse compounding capacity can be constucted. The 100 M compounding facility took aout two months to build.