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Chuck Vollmer & Peter Soriano26 February 2013
Tire Recycling Business
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Types eCycling Systems
eCycling USA will tailor processes to community needs.
Electronic Waste White Ware (Refrigeration)
Television (CRTs) Tires (Rubber & Steel)
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Tire Plant Layout & Schematic
Plant foot print: 38,000 sq. ft. (100 x 380) with 40 foot ceiling.4
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Key Components
Capable of processing down to 200 mesh powder (99.99% pure).
ShredderMagnetic Steel
Separation
Fine Processing,
Cryogenics &Ultra-fine Processing
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US Scrap Tire Market Trends
Approximately 300 million scrap tires were generated in 2011.
Market has matured and is now dominated by larger companies.
Demand, as opposed to reclamation, now drives market.
Market has four major segments in 2012:
Tire derived fuel (power utility plants): 153 million tires
Ground rubber (mulch, pellets and powder): 34 million tires
Exports (mainly Asia): 20 million tires
Tire derived aggregates (roads): 18 million tires
Online buying and selling has increased significantly. ChinasAlibaba.com is a major player. Demand for energy in Asia andspecialized applications are growing. Increased exports to China,India, Korea and Vietnam are likely.
Mature and changing marketplace that will be dominated bythose with access to tires and buyers. 6
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Tire Recycling Businesses
Key business components:
Tipping Fees
Rubber Recycling
Steel Recycling
Biofuels (R&D)
The key factors for a long term economic success:
Access to a consistent supply of scrap tires
Judicious selection of the appropriate recycling technology
Sound marketing for the recycled product
Customers
There are essentially two businesses: scrap tire processorsand end-user manufactures.
Rubber Steel
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Cost/Price Considerations
Typical Land Fill Tipping Fees: $233/ton
Tire Chips/Shreds: $19 to $55/ton Ground Rubber:
Rubber Mulch $380 to $750/ton
Pellets/Powders $715 to $7,985/ton
Steel: $250 to $550/ton
Note: commodities prices as of 18 Sep 12, subject to change.
Cost of a eCycling/CHEMA 30,000 ton per year system (about 3million used tires) that produces 24,000 tons of fine powder is in
the $30 million range. 24,000 tons is about 3% of the annual
ground rubber market.
Waste Per Ton Per Item
MSW 57.28$ -
CND 68.38$ -
Tires 231.90$ -
2.00$
5.00$
Auto Tire
Truck Tire
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Rubber
Chips Crumb Powder
Tons/Year 7,500 5,000 5,000 11,000 2,500
$/Ton $250 $19 $380 $715 $0
Revenue $1,875,000 $95,000 $1,900,000 $7,865,000 $0
Total Revenue
EBITDA (20%)
Rubber
Chips Crumb Powder
Tons/Year 7,500 0 5,000 16,000 2,500$/Ton $550 $55 $750 $7,985 $0
Revenue $4,125,000 $0 $3,750,000 $127,760,000 $0
Total Revenue
EBITDA (30%)
$135,635,000
$40,690,500
Steel Fluff
Steel Fluff High
Estimate
$11,735,000
$2,347,000
Low
Estimate
30,000 Ton/Year Plant
Revenue/EBITDA EstimatesNot Including Tipping Fees
9Detailed business plans will be tailored to each operation.
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US Scrap Tire Disposition
eCyclingUSA/CHEMA system specializes in high purity groundrubber processing and applications.
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Source: 2011 Rubber Manufactures Association, Inc.
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Ground Rubber Applications
Ground rubber is the most lucrative part of the market.11
Mesh Applications
4-40
mesh
Playground surface material, mulch, animalbedding, molds, surface materials
(playgrounds, racetracks), carpet padding,
rubber products, road enhancement
material, manufacture of reclaimed rubber,
matting, paste and sealing materials,
modified rubber products, road pavement
40-120
mesh
Rubber plastic materials, rubber products
(such as railway and subway ties), brake
pads, modified asphalt, solid tire production
120-200+
mesh
Textile material coating, special paper
coatings, painting materials and additives,
special rubber products, medical devices,
high level water proofing, materials for
military uses
http://images.google.com/imgres?imgurl=http://www.polymax.co.uk/images/Silicone%20pics/01%20Silicone%20Rubber%20Solid%20Sheet.jpg&imgrefurl=http://www.polymax.co.uk/Catalogue%20Product%20Pages/07%20Silicone%20Products%20Pages/01%20Silicone%20Rubber%20Solid%20Sheet.htm&h=188&w=340&sz=20&hl=en&start=41&tbnid=bKeYL1OfZ93D6M:&tbnh=66&tbnw=119&prev=/images?q=Rubber+construction+material&start=36&ndsp=18&svnum=10&hl=en&safe=active&rls=RNWE,RNWE:2005-51,RNWE:en&sa=Nhttp://images.google.com/imgres?imgurl=http://www.athleticflooringonline.com/images2/SchoolColors.jpg&imgrefurl=http://www.athleticflooringonline.com/html/HL155.html&h=190&w=190&sz=39&hl=en&start=16&tbnid=8sTvrku6ylqfqM:&tbnh=103&tbnw=103&prev=/images?q=Rubber+athletic+surfaces&svnum=10&hl=en&safe=active&rls=RNWE,RNWE:2005-51,RNWE:enhttp://images.google.com/imgres?imgurl=https://secure.voloper.net/sunlandasphalt/images/sce/jwmarriottdesertridgelong3.jpg&imgrefurl=https://secure.voloper.net/sunlandasphalt/flex.asp&h=225&w=238&sz=32&hl=en&start=6&tbnid=IZGm2tjpO-dnRM:&tbnh=103&tbnw=109&prev=/images?q=Rubber+modified+asphalt&svnum=10&hl=en&safe=active&rls=RNWE,RNWE:2005-51,RNWE:en&sa=Nhttp://images.google.com/imgres?imgurl=http://www.goodyearaviation.com/img/tire-flightspecial2.jpg&imgrefurl=http://www.goodyearaviation.com/special2.html&h=192&w=330&sz=14&hl=en&start=203&tbnid=P7Kme9YesDb84M:&tbnh=69&tbnw=119&prev=/images?q=tire&start=198&ndsp=18&svnum=10&hl=en&safe=active&rls=RNWE,RNWE:2005-51,RNWE:en&sa=N8/12/2019 ECyclingUSA Tire Recycling Businesses 26 Feb 2013
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US Ground Rubber Market
Source: 2011 Rubber Manufactures Association, Inc.
2005 to 2009 the market doubled and even grew during the Great
Recession of 2008/09.12
800,000 Tons
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Tire Derived Fuel (TDF)
Tire-derived fuel is composed of shredded tires
(usually 1 and 2) with most of the metal wirefrom the tire's steel belts removed.
TDF may be mixed with coal or other fuels usedin cement kilns, pulp and paper mills, electricalutilities, industrial boilers as well as dedicated
tires-to-energy plants.
TDF is a secure market with lots of low end processors.13
TDF has high energy contentabout the same as petroleum.
Key players in the TDF sector are: scrap tire suppliers, TDFproducers (tire shredders), TDF users (burners) and
government agencies (approvers). TDF market may have peaked due to the recession and
availability of scrap tires, but it is still a very secure marketand prices for high quality TDF products are strong.
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Tire Derived Fuels Market
Source: 2011 Rubber Manufactures Association, Inc.
TDF market may have peaked.14
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Civil Engineering Applications
Tire derived products, mostly 1 tire chips, are sometimesused to replace conventional construction material, (road fill,
gravel, crushed rock or sand). Benefits of using tire chips instead of conventional materials
include: reduced density, improved drainage properties,better thermal insulation.
The following are examples of projects where scrap tire chipshave been successfully used in civil engineering applications: Leachate drainage material at municipal solid waste landfills
Alternative daily cover at municipal solid waste landfills
Lightweight fill for embankments and retaining walls
Insulating layer beneath roads and behind retaining walls
Civil engineering applications of scrap tires are expected tobecome more widespread as more and more applications canbe proven to be technically and economically viable.
Decreased federal, state and municipal government
infrastructure spending will continue to impact this sector.15
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Rubber Modified Asphalt (RMA)
Reduces reflective crackingin asphalt overlays
Reduces maintenance costs
Improves resistance tocracking in new pavements
Improves resistance torutting in new pavements
Increases pavement life
Improves skid resistance
Decreases noise levels
Uses 500-2000 scrap tiresper lane mile
I-40 near Flagstaff, AZ
Paved in 1990
Without RMA With RMA
A Rubber Asphalt Association was formed to work with DOTs.16
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Innovative Railroad Application
TieTek is producing 25,000railroad ties per month madefrom recycled rubber and plastic.
Many of the major railroad andmass transit authorities are
experimenting with these ties. 40 year life span, versus 5-20
years from wood ties.
Wood Recycled rubber
The US is seeing a resurgence of railroads.17
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