REACT PGM: A Specialist in Catalytic Converter Recycling with Big Ambitions

As of January 1, the catalyst division of Krommenhoek Metals has become an independent company operating under the name REACT-PGM. The company has big plans and aims to become the market leader in the field of catalysts. These catalysts come not only from cars but also from industrial applications. Recycling is carried out in the most sustainable way possible.

Krommenhoek Metals has been active in metal recycling for 100 years this year. “We have many different divisions within our large company. That’s great, but it really does justice to our expertise to consolidate our focus within a single entity,” says Boyd de Bloois on behalf of REACT-PGM. “Customers often think we’re just experts in iron or metals and that we handle catalysts as a side business, when in fact we’re the true specialists in that field. That’s why we’ve decided to continue as an independent division under the name REACT-PGM.”

REACT-PGM has its own brand and identity. “This allows us to chart a slightly clearer course. Our name and look and feel are changing, but our approach remains the same,” Boyd explains. “At our recycling facility in Rotterdam, we strive to recycle our materials to the highest possible standard in order to create the best possible output for our customers. In our own laboratory, we can perform analyses of catalysts and batches for our customers.”

According to him, the new name fits perfectly with the company’s core business. “A catalytic converter has an inlet and an outlet. A reaction takes place in the section in between. A car engine emits dirty air full of pollutants. The conversion of monoxide to dioxide occurs inside the catalytic converter thanks to the precious metals it contains. A reaction then takes place, resulting in clean air coming out the other end. Our new logo ties in beautifully with that.” Although the catalytic converter division is moving forward under a new name, it will continue to work closely with Krommenhoek Metals. “Our team currently consists of three buyers who are on the road all day purchasing catalytic converters. The staffing at our production site varies slightly. For now, we’ll remain at the same location. This allows us to shift staff around a bit, but looking ahead, I expect we’ll continue to expand our workforce.”

The catalytic converter recycling division has grown rapidly in recent years. “We have a large base of loyal customers who continue to supply us with catalytic converters. Supply from our largest market—the automotive sector—has risen significantly in recent years. In addition, we are also processing an increasing number of industrial catalytic converters, such as those from the petrochemical industry. These catalytic converters come from various European countries as well as from outside Europe.”

REACT PGM sets itself apart by practicing recycling in the most sustainable way possible. “At Krommenhoek Metals, sustainability is a top priority. Our slogan, ‘refining futures,’ really says it all. We want to do our part for the future in the most sustainable way possible.” The company also excels because of its transparent approach. “The catalyst market is a rather opaque market. Why is one catalyst worth more than another? We’re very transparent with our customers. We show them how we arrive at our pricing. Furthermore, our industrial customers benefit from very fast turnaround times.” REACT PGM focuses on the business market. Boyd explains: “The purchase of catalysts from private individuals is handled through Krommenhoek Metals. They can also go there for their metals. We then process the catalysts.” There’s an additional service for private customers. “We can send them a price estimate via our WhatsApp service. If they agree to it, they’ll receive a shipping label that allows them to send the catalytic converters to Rotterdam for free. Upon receipt, they’ll be paid immediately via bank transfer.”

Boyd has all kinds of plans for the future. “We’d like to continue growing and become the market leader in catalyst recycling.” In doing so, REACT PGM benefits from Krommenhoek Metals’ 100 years of experience and carefully built reputation. “The precious metals market has experienced several very sharp peaks and deep troughs. That’s why we want to reduce our risk through hedging. We hedge our financial risks by hedging our physically purchased inventory daily on the LBMA. (London Bullion Market Association). When we actually deliver our end product to end users, we close out our hedge positions. This way, we keep our risks manageable, and sudden price drops will not have any adverse effects on us.”

He expects that many catalytic converters will continue to be recycled in the coming years, even with the rise of electric cars. “In the coming years, plenty of people will still be driving cars with internal combustion engines. You’re already seeing a shift taking place in the Netherlands, where the government is scaling back incentives for the purchase of EVs.” The internal combustion engine—possibly hybrid—is regaining market share. In addition, we’re increasingly focusing on other markets, such as trucks, ships, and industries like petrochemicals. We’re trying to expand our customer base as much as possible. We still see many opportunities there.”