Tire Recycling Industry

12/23/2016 TIRERECYCLINGINDUSTRY
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TireRecyclingIndustry:AGlobalView
TableofContents
ExecutiveSummary....................................................................................................................................................6
IndustryOverview.....................................................................................................................................................7
CountryProfiles........................................................................................................................................................13
Canada....................................................................................................................................................................13
USA.........................................................................................................................................................................29
EuropeanUnion...................................................................................................................................................43
UnitedKingdom................................................................................................................................................47
Germany.............................................................................................................................................................51
France..................................................................................................................................................................54
Italy......................................................................................................................................................................58
Spain....................................................................................................................................................................61
Japan.......................................................................................................................................................................64
Glossary.....................................................................................................................................................................70
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ListofFigures
Canada
1.ScraptirerecyclingindustrystructureinCanada14
2.MonetaryflowsintheCanadianscraptirerecyclingindustry..14
3.ScraptireusageinCanada(2002)..15
4.Usedtiregeneration(000units)16
UnitedStates
5.ScraptirerecyclingindustrystructureintheUS..30
6.Scraptireindustrygrowth(19902003).30
7.Scraptiresendmarkets(2003)35
8.Endmarketsdevelopment(millionunits)35
9.BreakupofTDFusers(2003)..35
10.TDFgrowthbyindustry(millionunits)35
EuropeanUnion
11.Scraptiregeneration(000tonnes).43
12.EUscraptiregenerationbycountry(2003)..43
13.ScraptirerecyclingindustrystructureintheEU.44
14.Scraptireendmarkets(2003).46
UnitedKingdom
15.Usedtiregeneration(000tonnes).48
16.Usedtiredestinations(2003)..49
17.Endmarketbreakup(2003)..49
18.Scraptireendmarketdevelopment(tonnes)..49
Germany
19.Usedtiregeneration(000tonnes)51
20.Usedtiredestinations(2003).52
21.Endmarketbreakup(2003).52
22.Scraptireendmarketdevelopment(tonnes)52
France
23.Scraptiregeneration(000tonnes)..55
24.Usedtiredestinations(2003)56
26.Scraptireendmarketdevelopment(tonnes)57
Italy
27.Usedtiregeneration(000tonnes)..59
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28.Usedtiredestinations(2003).59
30.Scraptireendmarketdevelopment(tonnes).60
Spain
31.Usedtiregeneration(000tonnes)...62
32.Usedtiredestinations(2003)62
33.Endmarketbreakup(2003)62
34.Scraptireendmarketdevelopment(000tonnes)63
Japan
35.ScraptirerecyclingindustryvaluechaininJapan65
36.Scraptiregenerationbysource,19942003(millions)..66
37.ScraptiresrecycledinJapan19942003(000tonnes)..66
38.Scraptiresendmarkets(2003)...67
39.Endmarketdevelopment(000tonnes)67
40.Segmentalbreakupofscraptirefuelmarket(2003)..68
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ListofTables
IndustryOverview
1.CalorificvaluesofTDFandotherfuels.8
2.Scraptirerecyclingindustrystatusinvariouscountries11
Canada
3.Canadianscraptiregenerationbystate200217
4.Canadianscraptirestockpilesbystate..17
5.MajorscraptirerecyclingcompaniesinCanada..21
6.ComparisonofAmbientandCryogenictechnologies.22
7.ComparisonofscraptiremanagementprogramsacrossvariousCanadianprovinces.26
8.Incentivesforvariousscraptireproductsacrossselectstates(C$/tonne)..27
UnitedStates
9.Scraptiresgenerationandstockpilesbystate(2003)..31
10.Top20scraptirerecyclingcompaniesinUS(2003)33
11.Scraptireregulationbystate...38
EuropeanUnion
12.MarketcomparisonofvarioustirederivedproductsintheEU45
UnitedKingdom
13.MajorplayersinUKscraptireindustry48
France
14.Scraptiregenerationin2004byprovince.55
Japan
15.Scraptiregeneration(19992003)...65
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EXECUTIVESUMMARY
Thescraptireindustryisdrivenbyregulation.Theindustryhasbeencreatedvirtuallydueto
governmentregulationsenactedtoaddresstheenvironmentalconcernsaboutillegallydumpedor
stockpiledtires.Governmentsarealsotryingtoimprovetheviabilityoftheindustrybyproviding
incentivestoendmarketsthatusescraptirederivedproducts.TheUnitedStatesandJapanwerethefirst
twocountriestoaddresstheenvironmentalhazardsofscraptiresandputthelawsinplace.Asaresult,
theyarecurrentlytheleadersinrecyclingratesandmarketsize.Europehasbeenalaggardinthisaspect,
butwiththedeadlineforimplementingEUdirectivesfastapproaching,theEuropeanindustryis
expectedtoregisterstronggrowth.
Timingofregulatoryintroductiondictatesthecurrentstateofdevelopment.Thescraptirerecycling
industryisatdifferentstagesofdevelopmentindifferentcountries.Thedevelopmentofthemarketis
directlylinkedtothetimingandpaceofregulationandthesizeofthedomesticautomotivemarket.
EndmarketsintheUSaremorediversified.TheUSwasthebiggestrecyclerin2003,followedbyJapan.
TheUSrecycledabout3.3milliontonnesoftiresin2003whileJapanrecycled855,000tonnes.Germanyis
thelargestrecyclerinEurope.While,tirederivedfuelisthemajorendmarketinmostcountries,civil
engineeringapplicationsaregrowingfaster.ThemarketsforscraptiresaremorediversifiedintheUS
thaninothercountries.IncountriessuchasJapanandGermany,tirederivedfuelisthepredominant
application.
Europeislikelytogrowfasterinthenextfewyears.IndustrygrowthinEuropeisexpectedtooutpace
thatofboththeUSandJapanoverthenextfewyears.EUcountries,especiallytheoneswithlow
recyclingrates,areexpectedtocontributetothebulkofthegrowth.RecyclingratesintheEUhavetaken
offfollowingtheissuanceofEUlandfillandrecyclingdirectives.Thegrowthinrecyclingrateisexpected
totaperoffinboththeUSandJapanasratesapproach100%andautomotivedemandcontinuestostay
flat.CountriessuchasIndiaandChina,whoseautomotivedemandiscurrentlybooming,areexpectedto
payattentiontothisissuesoon.
Profitabilityoftheindustryremainsthemostimmediateconcern.Thisislikelytocontinueuntilthe
tirederivedproductscancompetewithothermaterialsonpurelytechnicaltermsandpriceratherthan
relyingonincentives.However,lackoftechnicalstandardsandspecificationsforcrumbtillrecentlyhas
hamperedpenetrationintoengineeringmarkets.Futureprofitabilityhingesbothontheindustrysability
toturnoutinnovativeproductsandcontinuedgovernmentsupport.
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INDUSTRYOVERVIEW
Introduction
Thescraptirerecyclingindustryisdistinctiveinmanyaspects.First,theindustryowesitsexistencemore
toenvironmentalandregulatoryreasonsthaneconomicones.Second,thetimeatwhichregulationswere
introducedandthenatureofregulationsinacountryinfluencethestageofdevelopmentandthe
economicmodeloftheindustryindifferentcountries.Finally,thegrowthoftheindustryistiedto
governmentregulationandsupportmorethananyotherreason.
TheEnvironmentalImpact
Tiresaredesignedandbuilttolastandassucharenotnaturallydegradableanddifficulttotreat.This
posesahugeprobleminrecyclingthem.Traditionally,tireshavebeenstockpiledorillegallydumpedor
landfilled.However,noneofthemisalongtermsolution.Illegallydumpedorstockpiledtiresprovide
convenientbreedinggroundsformosquitoes,verminandsnakes.Accidentalfirescausedinstockpiled
sitescanrageformonthsreleasingtoxicfumes.Theoilyresidueleftaftertirefiresisdifficulttoeliminate
fromtheenvironment.Scraptirespresentproblemsevenwhentheyarelandfilled.Wholescraptires
eventuallycomeuptothetopofalandfillandcandamagecapsandlinersofalandfill.Asaresultofall
thesereasons,manystatesintheUSandmanycountriesthatarepartoftheEUhavebannedwholetires
frombeingacceptedatlandfillsandmaderecyclingcompulsory.
RegulatoryDevelopments
TheadverseenvironmentalimpactofscraptireswasfirstfeltinNorthAmerica,theworldslargest
automobilemarket.Theseriousnessoftheissuewasfeltmoreacutelyafterafirebrokeoutinatiredump
inHagersville,Ontario.Thefirelasted17daysandtheresidualchemicalsseepedintotheground
contaminatingthewatertable.ItisanironythatdespitetheoccurrenceofthisfireinOntario,thestate
wasthelasttoputastewardshipprograminplaceforscraptirerecycling.
ThefirstinitiativesweretakenintheUS.In1985,Minnesotabecamethefirststatetoenactlawsthat
mandatescraptirerecycling.Otherstatesfollowedsuitandrecyclingactivitiespickedupsteaminthe
1990s.ManyCanadianprogramsgotunderwayinthe1990swhileJapanledallthecountriesintermsof
recyclingrate.Incontrast,Europehasbeenalaggard.Interestinscraptirerecyclingincreasedprimarily
aftertheEuropeanUnionissuedregulationsbanninglandfillingofwholescraptiresafter2003and
shreddedtiresafter2006.ManycountriesintheEUdonotyethaveaprogramforscraptiremanagement
andendmarketincentivestoboostconsumptionoftirederivedproductsortirederivedfuel.
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ScrapTireRecycling
Whatisascraptire?
Definitionsofscraptirevaryacrosstheworld.Inthisreport,theRubberManufacturersAssociation
(RMA)definitionhasbeenusedconsistentlyandadjustmentstoindividualcountrystatisticshavebeen
madewherevernecessarytobringtheminlinewiththisdefinition.TheRMAdefinesascraptireasatire
thatcannolongerserveitsoriginalintendedpurpose.Asaresult,tiresthatcanberetreadedorused
againareexcludedfromthescraptirecount.However,itisacommonpracticeinEuropeandJapanto
includeretreadedandreusedtiresunderscraptires.Throughoutthisreportausedtireshallmeanatire
thathascomeoutofitsnormallifecyclebutwithmodificationscanbeusedforitsoriginalintended
purpose.Ascraptireshallmeanatirethatcanbenolongerusedforitsoriginalintendedpurpose.
Scraptiresareeithermeasuredinunits(millions)orweight(tonnes)orPTEs(passengertireequivalents).
Apassengertiretypicallyconsistsofrubbercompound(47%),carbonblack(21.5%),steel(16.5%),and
nylon/fiber(5.5%).Additivesandotherelementssuchassulphurconstitutetherest.Theenergycontent
ofatireisalsoveryhigh.Thenetcalorificvalueofatireisabout3234millionjoulesperkg.A
comparisonofcalorificvaluesofscraptireswithotherfuelsisgiveninTable1.
Table1:CalorificvaluesofTDFandotherfuels
Fuel CalorificValue
Coke(Petroleum) 13,700BTU/lb
Bituminouscoal 12,750BTU/lb
Oil(No.6fueloil'BunkerC')151,000BTU/gallon
Naturalgas 1,000BTU/cu.ft.
Tirederivedfuel 15,500BTU/lb
Source:ScrapTireManagementCouncil
RecyclingTechnologies
Thethreerecyclingtechnologiesinuseforrecyclingscraptiresareambientmechanicalgrinding,
cryogenicgrindingandpyrolysis.
1.Ambientmechanicalgrinding
Inambientmechanicalgrindingprocess,thebreakingupofascraptirehappensatambienttemperature.
Tiresarepassedthroughashredder,whichbreaksthetiresintochips.Thechipsarefedintoagranulator
thatbreaksthemintosmallpieceswhileremovingsteelandfiberintheprocess.Anyremainingsteelis
removedmagneticallyandfiberthroughacombinationofshakingscreensandwindsifters.
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Finerrubberparticlescanbeobtainedthroughfurthergrindinginsecondarygranulatorsandhighspeed
rotarymills.
2.Cryogenicgrinding
Cryogenicgrindingreferstothegrindingofscraptiresattemperaturesnear80 0C.Liquidnitrogenis
usedtoproducethelowtemperatures.Whenthetiresareexposedtosuchlowtemperatures,they
becomebrittleandcanbeeasilycrushedandbroken.Asaresult,thisprocessrequireslessenergythan
othersandproducesrubbercrumbofmuchfinerquality.
3.Pyrolysis
Pyrolysisreferstothethermaldecompositionofscraptireseitherintheabsenceorlackofoxygen.The
processaimstorecovertheoriginalrawmaterialsusingwhichthetirewasmade.Theseincludecarbon
black,scrapsteel,oilandhydrocarbongases.Whilethetechnicalviabilityoftheprocesshasbeenproved,
veryfewcompaniesareusingit.
Applications
Themostcommonapplicationsforscraptiresuseeitherwholeorshreddedtiresorgranulatedrubber
derivedfromtires.Thisisbecausetherecoveryoforiginalrawmaterialsfromtiresisexpensiveand
involvesanelaboratechemicalprocess.Themainendmarketsforscraptiresaretirederivedfuel,civil
engineeringapplications,groundrubberapplicationsandcut,punchedandstampedrubberproducts.
Themainareasofapplicationwithineachcategoryarelistedbelow:
Tirederivedfuel
Cementindustry
Paper/pulpindustry
Utilityboilers
Industrialboilers
Groundrubberapplications
Rubbermodifiedasphalt
Moldedandextrudedproducts
Newtiremanufacturing
Athleticandrecreationalapplications
Horticulturalapplications
Animalbedding
Surfacemodification
Cut,punchedandstampedrubberproducts
Civilengineeringapplications
Landfillconstructionandoperation
Septicsystemdrainfields
Backfillforwaterandbridgeabutments
Subgradeinsulationforroads
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IndustryStructure
Theindustrystructureacrossvariouscountriesisfairlysimilarwithminordifferencesincertainaspects.
Scraptiresaregeneratedwhenconsumersreplacetheirold,wornouttireswithnewonesandtheold
onesaredecidedtobeunfitforreuseandretreading.Scraptiresarealsogeneratedwhenconsumers
disposeoftheirendoflifevehicles.Sometimesscraptiresarealsobroughtintotherecyclingchainfrom
existingstockpiles.Thetrendsinscraptiregenerationlagnewtiretrendsbythreeyears.
Scraptirestypicallygatheratthegenerators(tireretailers,cardealersetc.),fromwheretheyare
transportedbyhaulerstoprocessorswhoconvertthescraptiresintosuitableendproducts.Whilethis
structureissimilaracrossallcountries,thedirectionofmonetaryflowsamongthepartiesinvolvedand
theorganizationthatmanagesthescraptireprogramdiffer.Forinstance,inCanada,haulersgenerally
pickupthetiresfromthegeneratorsforfree,whereasinEurope,haulerschargethegeneratorsfor
pickingupthetires.Alsostewardshipprogramsareanimportantandindispensablecomponentofthe
industryintheUSandCanada.However,theyarenotacommonfeatureelsewhere.
Acrosscountrycomparisonofthescraptirerecyclingindustryacrossvariousparametersingivenin
Table2:
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Table2:Scraptirerecyclingindustrystatusinvariouscountries
UnitedStates Canada Japan France Germany UnitedKingdomItaly Spain
ScrapTire 4,139,100 317,520 1,004,000 372,330 600,000 450,000 388,389 301,000

Generation 1
Existingstockpiles 2 271 34 Minimal NA NA NA NA NA
Recyclingrates 80% 86% 52% 78% 59% 70% 25%
MainendmarketsTirederivedfuel, Varyacrossstates, TirederivedfuelTirederived TirederivedfuelTirederived TirederivedfuelTirederivedfuel

Civilengineering mostlymolded products products
products products
Regulation Atstatelevel Atstatelevel Regulatedaspart Manufacturersand Nospecific Wholeand Regulatory Regulationexistsat

almostallstates almostallstates ofsolidwaste importers regulationfor shreddedtires frameworkstill provinciallevel
havelaws havelawsdealing responsiblefor scraptires bannedfrom evolving
dealingwith withscraptire scraptire landfills,voluntary
scraptire management management approachby
management industrypreferred
Stewardship YesAtstate YesAtstatelevelNone None,butAliapur None None,butTyre None None

programs level coordinatesthe Recovery
scraptire Associationco
management ordinatesthe
program program
Competition Intense High
Othercomments Highlyadvanced Wellestablished

market industry
Source:RMA,ETRA,JATMA,BLICandOthers,IrevnaAnalysis
1. Intonnes
2. Inmillion
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Industrydevelopmentacrossvariouscountries
Asmentionedearlier,theindustryisindifferentstagesofdevelopmentindifferentcountries.Thisis
mainlybecausetheregulationscameintoforceatdifferenttimesindifferentcountries,necessitatingthe
formationoftheindustry.However,acommonfeatureeverywhereisthatindustryprofitabilityremains
low.
TheUSandJapanaretheleadersintermsofrecyclingrates.Whiletirederivedfuelisthemajorend
marketinJapan,theendmarketsintheUSarelargerandmorediversified.However,growthratesare
expectedtocomedowninthecomingyearsasrecyclingratespeakandthestockpilestheUSarereduced.
TheadoptionofscraptiremanagementprograminOntario,thestatethatgeneratesasignificantnumber
ofscraptiresandhassubstantialstockpiles,isexpectedtoaccelerategrowth.Industrygrowthwillalso
dependondemandfromtheendmarkets.Realizingthis,moststatesinboththeUSandCanadahave
grantedincentivestoindustriesusingscraptirederivedproducts.
Europehasbeenalaggardwithrespecttothisindustry.TherecentEUlandfilldirectives,however,have
givenafillipandmanystatesarerushingtocreateprogramstoeliminatescraptires.WhileScandinavian
countriessuchasSwedenandFinlandhaveachievedconsiderablesuccess,othersareyettoreplicateit.
Mostcountrieshaveneitherstewardshipprogramsnorendmarketincentives.Despitethis,themarketis
likelytogrowowingtothefactthattheindustryisstillinearlystagesofdevelopmentrecyclingratesare
stilllowinmostcountries(onlyabout50%ifexportsareexcluded)andthepressuretomeetregulatory
deadlinesisincreasing.
Conclusions
Theindustryispoisedforfurthergrowthasmorecountriesenactlawstodealwithscraptire
management.Growthincountriesthathaveinitiatedscraptiremanagementprogramsrecentlyislikely
tooutpacegrowthincountriesthathaveintroducedsuchprogramslongago.Asaresult,growthis
expectedtoberobustintheEUthanUSandJapan.However,asfarasthecountriesthatareexpectedto
growrapidlyareconcerned,unlessaffirmativeactionsaretakentoensurethattheendmarketsabsorb
enoughofthescraptireindustryoutputtheindustrymightbesaddledwithexcesscapacity.Thismight
leadtoachurnintheindustry.
Whiletirederivedfuelisthemajorendmarketinmostcountriesatthemoment,growthincivil
engineeringapplicationsislikelytobemuchstrongeroverthelongtermasthelatterismoreprofitable.
However,inEurope,tirederivedfuelcouldbenefitintheshortterm.Thisisbecausethedemandfrom
civilengineeringmarkettakesmoretimetogetestablishedthantirederivedfuel.Assupplytakesoffthe
civilengineeringmarketmightnotbeabletoabsorbtheexcesssupply,someofwhichcouldbediverted
foruseasfuel.
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Canada
Introduction
ThescraptirerecyclingindustryinCanadaismanagedthroughstewardshipprogramsattheprovincial
level.Astewardshipprogramisaprograminwhichallpartiesinthetirerecyclingindustry(e.g.haulers,
retailersetc.)takeresponsibilitytorecyclescraptiresandeliminatestockpiles.Theprogramisusually
managedbyaprovinciallevelauthority.Eachprovincehasitsownstewardshipprogramandprograms
arefairlysimilaracrossstates,bothintermsofstructureandoperation.Astewardshipprogramis
necessitatedbecausescraptiresassuchhavenoeconomicvalueandnorecyclingispossibleunlessthe
governmentgrantsincentivesandpromotesit.Asaresult,governmentsupportiscriticaltothesuccess
oftheindustry.
AccordingtothelatestfiguresavailablefromtheCanadianAssociationofTireRecyclingAgencies,about
20millionscraptiresweregeneratedinCanadain2002.Thenumberofscraptiresgeneratedisgrowing
by2%annually.Whiledemandfromendmarketshasbeengrowing,thegrowthhasnotbeenrapid.
Performanceofstateswithrespecttoscraptireeliminationhasbeenmixed.Smallerstatessuchas
ManitobaandNovaScotiahavevirtuallyeliminatedtheirstockpileswhilebiggerstatessuchasQuebec
andOntariostillhavemassivestockpiles.Forexample,Manitobahasrecycledover1millionPTEs
(passengertireequivalents)sincetheTireStewardshipBoardwassetupin1995andclearedtheentire
scraptirestockpilesintheprovincein2004.
IndustryStructure
Scraptiresaregeneratedwhenconsumersbuynewtiresfortheirvehiclesordisposeoftheiroldvehicles.
Thesearenewlygeneratedscraptires.Oldscraptiresalsoentertherecyclingchainwhentheyare
eliminatedfromexistingstockpiles.Scraptiresfromconsumersarecollectedbygeneratorswhoareeither
tireretailersorvehiclerecyclers.Haulerspickupthetiresfromgeneratorsandhandthemoverto
processorswhoconvertthetiresintocrumbrubber,shredrubber,tirederivedfuelandothermaterials
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thataresuitableforendmarkets.Municipalitiescanalsocollectscraptires,andincertaincases,haul
themtoprocessors.Theindustrystructureisfairlysimilaracrossallthestates.
Thefigurebelowillustratestheindustrystructure:
Figure1.ScraptirerecyclingindustrystructureinCanada
Consumers
TireRetailers VehicleRecyclers Municipalities
Haulers
Processors
TireDerivedFuel CivilEnggApplications OtherRubberProducts
Source:IrevnaAnalysis
Thefigurebelowshowsthemonetaryflowsintheindustry:
Figure2:MonetaryflowsintheCanadianscraptirerecyclingindustry
Consumers
(Paytirelevyonpurchaseof
newvehicleortires)
Tire/Carretailers
(Remittirelevyandcollect
handlingfee)
Haulers(Collecthauling
Municipalities(Collect
feeandsurchargeas StewardshipBoard
handlingfee)
applicable)
Processors
EndMarkets
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Generators
Generatorsrepresentthepointwherescraptiresentertherecyclingsystem.Generatorsincludetire
retailers,vehiclerecyclers,municipalities,landfillsandtiremarshallingdepots.Generatorscollectafee
fromcustomersforeverynewtiresoldandremitittotheauthorityconcernedwithinastipulatedtime
frame.Dependingontheprovincialregulation,thegeneratormayormaynotreceiveahandling
allowance.
Haulers
Haulerspickupthescraptiresfromgeneratorsandhandthemovertoprocessors.Haulersarepaida
fixedamountpertirebystewardshipauthoritiesdependinguponthetypeoftireaswellasthe
transportationdistance.
Processors
Processorsturnthescraptireintomaterialsthatcanbeusedbytheendmarkets.Theoutputof
processorsisusuallycrumbrubber,shreddedrubber,scrapsteelandfinegroundrubber.Processorsare
paidbyStewardshipBoardsonproofofsaleofproductsderivedfromscraptires.Thefinancial
performanceofprocessorsdependsontheircoststructures,governmentsupportanddemandfromend
markets.Forexample,processorswhousecryogenicequipmentincurhighercostsbothforthemachinery
aswellliquidnitrogenthatisusedintheprocess.Choiceofequipmentdependsonthedesiredqualityof
crumbrubber,whichinturndependsontheendmarketsthatareservedbytheprocessor.Thefigure
belowgivesabreakupofscraptireusageindifferentformsin2002:
Figure3.ScraptireusageinCanada(2002)
Baled Molded
Diecut
2% Products
11%
33%
TireDerivedFuel
13%
Shredded
17% Crumb
24%
Source:CanadianAssociationofTireRecyclingAgencies
Endmarkets
Theendmarketsforthematerialsderivedfromscraptiresincludefuelapplications,rubberproducts,
andcivilengineeringapplicationssuchasrubberasphaltpavements.Processorsalsoexportcrumb
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rubberandothertirederivedproductstotheUS.Consumptionbyeachendmarketvariesfromprovince
toprovince.Forexample,81%ofthescraptiresrecycledinBritishColumbiain200304wereconvertedto
tirederivedfuelandtherestintotirederivedproducts.However,NewBrunswickscraptireprogram
placesmoreimportanceonvalueaddedproductsandhasnevershippedtirederivedfuel.Albertatoo
hasstoppedfundingTDFin1995andin200304its54%ofitsscraptireswereusedforcivilengineering
applicationswhiletherestwereusedtoproducerubbercrumb(29%)andmanufacturedproducts(17%).
Ontariotoohasnoendusersoftirederivedfuelthoughcertainendusershaveapprovalforitsuse.
ScrapTireGenerationandStockpiles
AccordingtotheCanadianAssociationofTireRecyclingAgencies,Canadageneratedaround20million
scraptiresin2002roughlyequalto28millionPTE.Scraptiregenerationisgrowingatabout2%per
year.About70%ofthegeneratedscraptiresareprocessedinCanadawhiletherestareexportedor
stockpiled.Ontarioisthelargestgeneratorofscraptireswith10.3millionPTEs,followedbyQuebec(8.1
millionPTEs).Whiletheexactnumbersforscraptiregenerationforthepastfewyearsarenotavailable,
replacementdemandfortires(usedtiregeneration),whichservesasareasonablesubstitute,from1999to
2003isgivenbelowinFigure4.
Figure4.Usedtiregeneration(000units)
16,500
16,000
15,500
15,000
14,500
14,000
13,500
1999 2000 2001 2002 2003
Source:CanadianRubberAssociation
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Estimatesofscraptiregenerationandstockpilesbystatearegivenbelow:
Table3:Canadianscraptiregenerationbystate2002
State ScrapTiresGenerated(millionPTEs)
Ontario 10.3
Quebec 8.1
BritishColumbia 2.8
Alberta 2.4
Saskatchewan 1.1
Manitoba 0.9
NewBrunswick 0.8
NovaScotia 0.7
Newfoundland&Labrador 0.4
PrinceEdwardIsland 0.2
Total 27.7
Source:CanadianAssociationofTireRecyclingAgencies
Table4:Canadianscraptirestockpilesbystate
State ScrapTireStockpiles(millionPTEs)
Ontario 6
Quebec 25
BritishColumbia 1.4
Alberta Minimal
Saskatchewan 1.0
Manitoba Minimal
NewBrunswick Minimal
NovaScotia Minimal
Newfoundland&Labrador
PrinceEdwardIsland Minimal
Total 34
Source:AProposalforscraptiremanagementinOntario,OTSPlan
KeySegmentsandPlayers
Scraptireprocessorscanbesegmentedintothreeclassesbasedonthetypeoftheirproducts.Thethree
classesare:shredproducers,groundrubberandcrumbproducersandtirederivedfuelproducers.These
demarcationsarenotrigidasmanyscrapprocessorsdoproducebothshredandcrumbrubberwhile
someproducerubberproductsusingtheirowncrumboutput.Definitionsofthecategoriesaregiven
below:
Tireshreds:Tireshredsarerubberchipsproducedbyshreddingmachines.Shredsareusually1218
incheslongand49incheswide.Certainshreddingmachinescanproducemuchsmallershredsthatare
only46inchesinlength.Usuallytiresareprocessedintwostages(primaryandsecondaryshredding)to
producesmallershreds.Tireshredsusuallycontainthenonrubbercomponentsofatirei.e.,steelwire
andnylon.Someprocessorsusedebeaderstoremovesteelbeadsfromtiresbeforeshredding.
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Applicationsfortireshredsincludeembankments,playgroundsurfacematerial,landfillconstructionand
operationandothercivilengineeringapplications.
Groundrubber:Groundrubberparticlesusuallyvaryinsizefrom19mmto0.15mmdependingonthe
machineryusedandtherequiredapplication.Theparticlesareproducedbygranulators,hammermillsor
grindingmachines.Steelparticlesareseparatedusingmagneticseparatorswhilefibersareseparated
usingairseparators.
Crumbrubber:Crumbrubberpiecesusuallyrangeinsizefrom4.75mmto0.075mm.Processesthat
incorporatecrumbrubberasanasphaltmodifieruseparticlesranginginsizefrom0.6mmto0.15mm.
Fourprocessesareusedtoproducecrumbrubber.Theyarecrackermillprocess,granulatorprocess,
micromillprocessandcryogenicprocess.Applicationsforcrumbrubberincluderubbermodified
asphalt,mouldedproducts,athleticsurfaces,automotivetiresandconstructionapplications.Themargins
oncrumbrubberaremuchhigherthanonshredrubber.
Tirederivedfuel:Tireshredsusedasfuelincement,utilitiesandotherindustries.Thegreatestdemand
isfromthecementindustry.Presenceofsteelintireshredsbenefitsthecementindustryasitreducesthe
amountofironorerequiredforthecementmakingprocess.
MajorIndustryPlayers
WesternRubberProducts
WesternRubberProductsistheonlycrumbprocessorinBritishColumbia,andisalsovertically
integrated,withahaulingbusinessunitandrecycledrubberproductmanufacturing.Itproducesshred
and30meshcrumbusingambientgrindingtechnology.Thechiefendmarketsarerubberasphaltand
animalmatsegments.
Annualcrumbandshredcapacity:3.6millionPTE
RecoveryTechnologies(Canada)Inc.
RecoveryTechnologies(Canada)Inc.,producesgranularcrumbrubberfromscraptires,recycledrubber
products,aswellastirerecyclingequipmentandmachinery.ThecompanyistheleaderintheOntario
marketandalsohasplantsinSaskatchewan,NovaScotiaandPittsburgh,US.
Annualproductioncapacity:2.9millionPTE
AlbertaEnvironmentalRubberProducts
AlbertaEnvironmentalRubberProducts(AERP)isacollector,transporterandscraptireprocessor.It
producesshredandhighgradecrumb,supplyingmanufacturersofmats,rubberizedsurfacingmaterial,
playgroundmaterialandavarietyofotherproductsfromrecycledcrumb.
18
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Crumbproduction:1.4millionPTE
Shredproduction:0.9millionPTE
ChampagneEditionInc.
ChampagneEditionInc.producesitsowncrumbrubberandalsomanufacturesindustrial,dairyand
antifatiguemats,aswellasrubberbricks,tiles,sidewalkblocks.Itcurrentlyproducesabout80%ofits
needsandsourcescrumbfromotherregionalcrumbproducersfortheremainder.
Crumbproduction:1.4millionPTE.
Shredproduction:0.9millionPTE.
NRIIndustriesInc.
NRIIndustriesInc.isbothaprocessorofscraptiresintocrumbrubberandamanufacturerofengineered
rubberbasedproductsusingtirerecyclingandnewmaterialproductiontechnologies.Thecompanyisa
Tier1suppliertoFord,GM,ChryslerandNissan.Itproducesover500differentinjectionand
compressionmolded,flatand3Ddiecutting,assemblyandrubbertometalbondedproducts.Its
industrialproductsinclude:rubberrollsandsheets,truckandautomudflaps,dockandtrailerbumpers,
chocks,roofwalkwaymats,vibrationisolators,antiskidmats,animalmats,flooringandpreforms.
TrenseptAutomationInc.
Thecompanyproducesrubbercrumbfromscraptiresandusesittoproducecompressionmolded
consumerproductsaswellasnonrubberrelatedproducts.Itrecentlycompletedtheinstallationofa
cryogenicrubbercrumbplantcapableofproducingcrumbinthe660meshrangeattherateof100tons
perweek.Targetcustomersarerubbercompressionmoldersseekinganeconomicalsolutiontothehigh
costofvirginrubber.Thecompanyisalsodevelopinganautomatedmoldinglinetobringtomarketan
interlockingbrickproductmadeofcrumbrubber.
Annualproductioncapacity:1.5millionPTE.
ChathamRubberManufacturingCorp.
ChathamRubbermanufacturesallblackcrumbrubberfromradialtrucktiresprimarilyforrubbermat
production10,20,30,and40mesh.IthaslongtermcontractswithWellingtonPolymerTechnology,
whichproducesEnviroshakeroofingshingles.
Annualproductioncapacity:1.2millionPTE.
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EnvirothermManufacturing
EnvirothermsprimarymarketistheUStirederivedfuelmarket.Thiscompanystartedinthehauling
segmentandhassinceintegratedverticallyintothescraptiresshreddingandprocessingsegmentaswell.
Thecompanyiscurrentlyconsideringenteringtherecycledrubbercrumbproductionmarket,andis
contemplatingthenecessary$2.5millionequipmentinvestmenttodoso.Itisparticularlyinterestedin
exploringthemarketsforhighermeshcrumb.
Annualshredproduction:1.0millionPTE.
TireRecyclingAtlanticCanadaCorp.
TRACCisaverticallyintegratedhaulerandprocessor,andenduseproductproducer,andisthemajor
AtlanticCanadiancrumbprocessorandrecycledproductscompanyactiveinthemarket.Itisengagedin
thecollection,transportation,shredding,crumbingandtheremanufacturingofnewproductfromscrap
tires.
Itsendproductsincluderubbercrumb(3/8and20mesh),animalmatsforlivestocktrailersandbarns,
sheetstockusedinthemanufactureoforiginalequipmentmanufacturers,automotiveaftermarketrubber
parts,manholecollarsandrisersformunicipalities,andathletic/sportssurfacing.
Annualshredandcrumbcapacity:0.851.0millionPTE.
TyretekIndustries
TyretekistheleadingrubbercrumbprocessingorproducingcompanyinEasternOntario(italso
producesshred).Itproducescrumbfromscraptiresforvariousvalueaddedenduseapplications,with
5060%ofitsoutputsoldtomicrogrinders,mostlyintheUS,andafurther25%ofitsoutputgoinginto
sportsfieldapplications.
AnimatInc.
AnimatInc.isoneofQuebecslargestprocessorsofrubbershredandcrumb,aswellasarecycledrubber
productmanufacturer.Animatsmainofferingsarehorserelatedproducts(stalls,walkways,riding
areas,trainingareasandwashareas),dairyproducts(interlockingrubberflooringsystemsforlivestock
facilities),andindustrialandcommercialproducts(rubberizedsurfacingmaterial,playgroundmaterial
andavarietyofotherproducts),allmadefromrecycledtrucktirecrumb.
20
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Scopcat
ScopcatisoneofthelargestQuebecrubberprocessors,andisactiveinbothshreddingandgrinding.It
specializesinambientshreddingandgrindingofscraptrucktiresgroundintocrumb(10and20mesh),
andsuppliedtoproductmanufacturers.
AtlanticRecycledRubberInc.
AtlanticRecycledRubberInc.producescrumbthroughapatentedcryogenicgrindingprocesstofreeze
tire,removefibersandmetalwire,andproducecrumb.Crumbrubbergradesincludeblack,blackand
white,gray,buffings,tirerings,andcrumbin4to+30grades.
AcomparisonallmajorcompaniesacrosskeymetricsisgiveninTable5.
Table5:MajorscraptirerecyclingcompaniesinCanada
Company Province Capacity Products TechnologyUsed
WesternRubberProducts BritishColumbia 3.6millionPTE Crumbandrubber Ambient
products
RecoveryTechnologies Ontario 2.9millionPTE Crumbandrubber Ambient

(Canada)Inc products
AlbertaEnvironmental Alberta 2.3millionPTE Shredandcrumb Ambient

RubberProducts
ChampagneEditionInc. Alberta 2.3millionPTE Crumbandrubber Ambient

products
NRIIndustriesInc. Ontario 1.6millionPTE Crumband Ambient

engineeredrubber
products
TrenseptAutomationInc Ontario 1.5millionPTE Crumb,molded Cryogenic
rubberproducts
ChathamRubber Ontario 1.2millionPTE Crumbandshred Ambient

ManufacturingCorp.
Envirotherm Ontario 1.0millionPTE ShredforTDF Ambient

Manufacturing
TireRecyclingAtlantic NewBrunswick 0.851.0millionPTE Crumbandrubber Ambient

CanadaCorp products
AtlanticRecycledRubber NovaScotia 0.9millionPTE Crumb Cryogenic

Inc
TyretekIndustries Ontario 0.5millionPTE Crumb Ambient
AnimatInc Quebec NA Shred,crumband Ambient

rubberproducts
Scopcat Quebec NA Shredandcrumb Ambient
Source:IrevnaResearch
TireDisposalTechnologies
Thethreetechnologiesthatarewidelyusedforprocessingscraptiresaremechanicalgrindingatambient
conditions,cryogenics,andmicrowave/pyrolysis.
21
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Ambientmechanicalgrinding
MechanicalgrindingiswidelyusedinBritishColumbia,Alberta,Manitoba,Ontario,andQuebec.This
methodconsistsofmechanicallybreakingdowntherubbershredintosmallparticlesusingvarious
machinessuchasgranulators.Thesteelinthetiresismagneticallyseparatedfromthecrumbduringthe
variousstagesofgranulationandthefiberinthetireisseparatedbysieveshakers.Theentireoperation
occursatambienttemperature.
Theadvantageofmechanicalgrindingisthatitisinexpensiveandmachineryiseasytoprocure.The
downsideisthatrubberpiecesarerathercoarseandfinerubberparticlesaredifficulttoproduceusing
thisprocess.
Cryogenicgrinding
Inthisprocess,rubberiscrushedatextremelylowtemperatures,attainedbyusingliquidnitrogen.Steel
isremovedmagneticallyfromtherubberpieces.Theparticlesturnedoutbytheprocessarefinerand
smoothintexture.Whiletheprocessisconsiderablyexpensive,theproductionprocessisfasterand
cleaner.
Acomparisonofambientandcryogenictechnologiesisgivenbelow.
Table6:ComparisonofAmbientandCryogenictechnologies
Parameter Ambient Cryogenic
Operatingtemperature Ambient,maximumof120 0C Below80 0C
Sizereductionprinciple Cutting,shearing,tearing Breakingcryogenically
embrittledrubberpieces
Particlemorphology Spongyandrough,highspecific Evenandsmooth,lowspecific
surface surface
Particlesizedistribution Relativelynarrowparticlesize Widerangeparticledistribution
distribution,onlylimitedsize (rangingfrom10mmto0.2mm)
reductionpergrindingstep injustoneprocessingstep
Maintenancecost Higher Lower
Electricityconsumption Higher Lower
Liquidnitrogenconsumption 0.51.0kgliquidnitrogenperkg
oftire
Source:www.entireengineering.de
Microwave/Pyrolysis
Thisisarelativelynewprocessthatgeneratestheoriginalmaterialsusingwhichthetirewasmade.The
materialsgeneratedbytheprocessarecarbonblack,fueloil,sulphurash,steel,andfiber.Theprocess
employswholetires,unliketheabovetwowherethetirehastobebrokendownatleastpartially.The
processconsistsofdecompositionofthetiresbyextremeheatintheabsenceofoxygen.Considerable
22
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researchisunderwaytoimprovetheeconomicsofthisprocess,whichisexpensiveandproduces
materialsofnonmarketablequality.
SYMAR
NRIIndustriesutilizesitsownproprietaryprocess,SYMAR.Theprocessseparatesthetiresintotheir
componentparts,granulatestherubber,andthenthegranulatedrubberisconvertedintoanew,higher
valuematerialSYMARDorSYMARTusingproprietarytechnology.SYMARDandSYMARTare
depolymerizedrubbercompounds,whichcanbeusedinamannersimilartovirginrubber.
MarketDrivers
Themainmarketdriversforthescraptirerecyclingmarketaregovernmentsupportanddemandfrom
endmarkets.
1.Governmentsupport
Scraptirerecyclingbeinganeconomicallyunattractivesector,governmentsupportatbothcentraland
statelevelsisessentialforthegrowthofthesector.Currently,theindustryisdependentonstewardship
programsforsustenance.Ifthegovernmentsucceedsinencouragingendmarketconsumption,itwould
improvetheeconomicviabilityandleadtofurtherdevelopmentofthesector.
2.Demandfromendmarkets
Themainendmarketsandtheirdevelopmentsarediscussedbelow:
MoldedGoods
Afullrangeofconsumerproductsisnowbeingmanufacturedfromrecycledrubberfromtires.Themain
applicationsarewheretherubbercrumbismixedwithabindingagentandmoldedintoproducts.These
includerubbermats,pavingstonesandblocks,curbstops,railroadcrossings,automotiveparts,solid
wheels,fatiguemats,animalmats,gymnasiumflooring,truckboxliners,andupto15%ofthecontentof
newhighwaytires.
Finerubbercrumbisusedasafeedstockinarangeofmanufacturingprocesses,whileultrafinerubber
crumbcannowbemadeintosealant,soakerhoses,carpetunderlay,andpartiallyrevulcanizedrubber
reclaim.Inaddition,looserubbercrumbisnowbeingmadeintoanimalmattressesfordiarycattle.Pour
inplacesurfacesforplaygroundsandrunningtrackshavebeenmadeusingfinerubbercrumbasa
bindingagent.
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CivilEngineering
Civilengineeringusesforscraptiresincludeapplicationssuchasbreakwaters,erosionbarriers,and
engineeredlandfill.Largetireshredshavebeensuccessfullyusedaslightweightfillmaterialinroadbed
andembankmentstabilizationprojects.
Mediumsizedrubbercrumb(510mm)hasbecomepopularasamaterialforplaygroundstoprovide
protectiontochildrenfromfallsandinjuries.Thissamematerialsizerangeisbeingusedinequestrian
trainingareas(usuallymixedwithsand)toprovideasecureandsafefootingforhorses.Itisalsobeing
usedingolfcoursesandsportsfieldstoprotectturfandprovidebetterdrainage.
RubberizedAsphalt
Recycledrubbercrumbhasbeenusedinasphaltintwodifferentways.First,asafilleroraggregate
replacement,andsecondasabindingagent.Rubberizedasphalthasshownenhancedwearandtraction
performance,aswellasminimizingthewearrelatedroadruttingandfrostdeformationofroadsincold
climates.
EnergyRecovery(TireDerivedFuel)
AlthoughnotbeingusedinthisapplicationinOntarioasyet,bothwholeandshreddedtiresareused
extensivelyinotherjurisdictionsinCanada,theUSandotherpartsoftheworldinenergyrecovery.
Controlledcombustionoftirescanbeusedtorecovertheenergyinthehydrocarbons.
Tires
Anemergingapplicationareaforscraptireisinproductionofnewtires.This,however,isstillinthe
earlystagesofprocessandmarketdevelopment.AccordingtotheOntarioTireStewardship,recycled
rubberaccountsforasmuchas15%ofthecontentofsometiresasthereisnocurrentorpending
requirementforaminimumrecycledrubbercontentfornewtires.
Themainproblemfortheindustryhasbeentheslowadoptionofproductsfromscraptirerecycling.
However,initiativesareunderwaytoimprovedemandfromendmarkets.Tirederivedfuelis
increasinglybeingpromotedasanalternativefuelandcrumbrubberisbeingusedextensivelyfor
rubberasphaltpavements.UsageoftirederivedfuelishighinAlbertaandQuebec.Companiessuchas
Fordhavemadeitmandatoryfortiremakerstoincludeacertainpercentageofrecycledrubberintheir
tires.
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Regulation
InCanada,eachprovincehasitsownlawsaswellasscraptiremanagementprogramstoregulatethe
scraptireindustry.Tillrecently,Ontariowastheonlystatewithoutascraptiremanagementprogram.
However,therecentlyproposedOntarioTireStewardshipprogram,whichdrawsuponthebest
practicesaswellasexperiencesofsimilarprogramsinotherCanadianprovinces,isexpectedtofillthat
void.Mostscraptiremanagementprogramsaresimilarinstructureanddifferonlyinminordetails.
Ingeneral,theregulationsaffectingthescraptireindustryareintheformofthefollowing.
1.Scraptiremanagementprograms:Theseprogramsareintendedtoboostrecyclingratesandreduce
stockpileswhileencouragingusageofscraptiresinendmarkets.Theyattempttoachievethisby
involvingcommunitiesaswellasallmajorindustryparticipants.Theindustrystructureinallprovinces
issimilartotheoneshowninFigure1.Acomparisonofimportantregulatoryelementsacrossvarious
provincesinCanadaisshownbelow:
25
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Table7:ComparisonofscraptiremanagementprogramsacrossvariousCanadianprovinces
Prince
British New Nova
Alberta SaskatchewanManitoba Quebec Edward
Columbia Brunswick Scotia
Island
Whopaysfee Consumer Consumer Consumer Consumer Consumer Consumer Consumer Consumer
Feecollection FinanceMin. Retailersremit Retailersremit FinanceMin. FinanceMin. Retailersremit Retailers Retailers

collectsfeethrough directlyto directlytoTire collectsfee collectsfee directlytoTire remit remit
PST,remitsfull TireBoard Board throughPST, throughPST,then Board directlyto directlyto
amounttoEnv. thenremitsfull remitsfullamount TireBoard govt.
Min,whichremits amounttoTire toRecycQuebec
60%toTireBoard Board
Feespaidto Processorson Processorson Processorson Processorson Processorson Processorson Processors Government

proofofsale proofofsale proofofsale proofofsale proofofsale proofofsale onproofof
sale
Transporters Processors Transporter Municipalities Transporters Processors

responsible ($.50eachtire responsiblefor Processors
Transporter
fortire tostockpile) tirecollection responsible
collection fortire
collection
Feepertire $3.00onallnew $4.00onall $3.50sm. $3.00onall $3.00onalltires $3.00small $3.00small $2.00onall

tires newtires $35.00la. newtires under24.5dia. $9.00large $9.00large newtires
Annualtiresales 3.5M 2.75M 0.9M 0.8M 5.7M 1.0M 0.7M 0.1M
TotalCollected $10.5M $11M $3.1M $2.2M $17M $2.6M $2.9M $0.2M
Pgm.Cost
Processing $4.5M $9.5M $1.2M $2.0M $6.5M $2.5M $1.1M $0.11M
Transportation $1.8M $1.5M $6.2M $1.6M $0.09M
Administration $0.3M $0.5M $0.4M $0.3M $0.9M $0.5M $0.2M
Abatement $3.4M
Grants $0.5M $0.1M
Landfill None None None None Bannedfrom None Banned None

Regulations landfill from
landfill
26
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ThesalientfeaturesoftheOntarioTireStewardship(OTS)program,whichwasrecentlyapproved,are
listedbelow:
TheOTSBoardwillmanageandcoordinatetheprogram.
AtirelevyofC$46pertirewillbecollectedbytheretailerwheneveranewcarortireissold.
TheretailershallremitthefeetotheOTSBoardwhileretainingahandlingfeeofC$0.35pertire.
Handlingfeewillalsobepaidtomunicipalities.
Haulersshallpickupthetiresfromretailersatnocost(exceptinspecialcases)andwillbepaid
C$0.90pertirebytheOTSBoard.
ProcessorswillbepaidonproofofsaleofproductsderivedfromscraptiresbytheOTSBoard.
Paymentwilldependonthetypeofproduct.
OTSwillalsosupportR&Dofprocessorsandprovideincentivestoendusersofproductsderived
fromscraptires.
Aspartofscraptiremanagementprograms,processorsarealsopaidfortheproductstheyturnoutupon
proofofsale.Theseprocessingincentivesareprovidedtoincreasethefinancialviabilityofscraptire
processors.ProcessingincentivesgivenbyselectstatesforvariousproductsarelistedinTable8.
Table8:Incentivesforvariousscraptireproductsacrossselectstates(C$/tonne)
Alberta BritishColumbia Ontario
ProductType IncentiveProductType IncentiveProductType Incentive
4minusshred C$100TDP1 C$183TDP1 C$120
2minusshred C$145TDP2 C$122TDP2 C$100
#3meshcrumb C$110TDP3 C$60Fabricated C$60
products
Manufactured C$100ProcessedTDF1 C$110TireShred C$50
products1 (4minus)
Fabricatedproducts C$275WholetireTDF2 C$85TDF C$40
1Incentivepertonneofcrumbintheproduct
Source:OTSPlan,AlbertaandBritishColumbiareports
2.Environmentalregulations:Akeyfactorthatcanhamperscraptirerecyclingindustryisthe
environmentalregulationincertainendmarkets.Themostcontentiousoftheendmarketsistheburning
oftiresasfuel.Eagertoincreasescraptirerecyclingandreducestockpiles,Canadianauthoritiesare
allowingincreasedadoptionoftirederivedfuels.Forexample,theOTSprogramprovidesaprocessing
incentiveofC$40/tonnefortirederivedfuel.However,environmentalgroupsareopposedtoburningof
tireasfuelsclaimingthatitemitsnoxiouschemicals.Industrygroupsclaimthatburningoftiresasfuelis
nomoreharmfulthanburningofcoal,ifnotcleaner.
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MostCanadianprovincesallowuseofscraptiresasfuelandhavenotputanyspecificlimitsonusageor
emissionsresultingfromuseofscraptiresasfuel.Thisisbecauseanappropriatedatacollection
mechanismhasnotyetbeenidentifiedformeasuringemissionsfromthistypeofsource.However,given
thestrongpressurefromenvironmentalgroups,aregulationcouldsoonbeintheoffing.
3.Otherregulations:Theotherregulationsmainlyarerelatedtofinancialincentivesandotherrules
createdspecificallytoencourageconsumptionofscraptireproductsbytheendmarkets.Provincial
Governmentsareencouragingscraptiredisposalandrecyclingthroughincentivesforendusersofscrap
tires.Forexample,theQuebecgovernmentsignedanagreementin2001withtwocementcompanies
LafargeandSt.LawrenceCementtopayC$4050pertonneofscraptiresthecompaniesuseasfuelin
theirkilns.
Assessmentofregulatoryimpact
Currentregulationsareinfavorofscraptireprocessorsasauthoritiescontinuetoplacehighimportance
onreducingscraptirestockpilesandincreasingrecyclingrates.Regulatorsarealsotryingtoboost
consumptionofscraptireproducts.Afactorthatcouldimpactthesectornegativelyisthepressurebeing
exertedbyenvironmentalgroupstobanburningoftiresforfuel.
However,amajorproblemwiththeregulationisthatitistoofragmentedacrossprovinces.Sinceeach
provincehasitsownstewardshipprogramfundedbythecitizens,provincialauthoritiesarereluctantto
payprocessorsfromotherprovinces.Forexample,bothOntarioStewardshipprogramandFIRST
programofBritishColumbiapayprocessingincentivesonlytoprocessorsbasedintheirstates.This
promoteslocalizationofprocessorsonaprovincialbasis.Insuchsituation,regulationactuallyhampers
industrygrowthbypreventingplayersfromachievingeconomiesofscale.
Conclusions
Canadasscraptireregulationprogramsaresomeofthemostindustrysupportiveintheworld.While
theregulationsaregovernedbyprovinces,theyarefairlysimilarandprovidesupportthroughprocessor
incentivesandenduserincentives.
WiththelikelyimplementationofscraptireprograminOntariointhenearfuture,scraptiregenerationis
likelytogoup,asabout6millionscraptires,currentlylyinginstockpiles,willneedtobeeliminated.
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UnitedStates
Introduction
TheUnitedStatesscraptirerecyclingindustryisthelargestintheworld.Endmarketsfortirederived
productsandtirederivedfueltooaremoredevelopedintheUSthananyothercountry.In2003,over290
millionscraptiresweregeneratedintheUSofwhich233millionwererecycled.Therecyclingratehas
goneupoverthelast14yearsandexceeded80%in2003.AsinCanada,theindustryisguidedbystate
stewardshipprograms.Moststateshaveastewardshipprograminplaceaswellashighlydeveloped
endmarketsthatarecapableofabsorbingthescraptiresgenerated.Abouthalfofthestateshavereduced
stockpilestoonemilliontiresorlessandstatessuchasMinnesotaandWestVirginiahavecompletely
eliminatedtheirstockpiles.Profitabilityofprocessorsremainslowandsincemarginsarehigherin
productmanufacturing,manyprocessorsareaddingproductmanufacturingcapabilities.Tirederived
fuelisthemostimportantapplicationofscraptiresfollowedbycivilengineeringapplicationsandboth
continuetoshowimpressivegrowthrates.Scraptiregenerationandrecyclingareexpectedtogrow
furtherasthreestateswithhugestockpilesMichigan,NewYorkandAlabamahavepassedlegislation
thataimsatreducingstockpiles.Responsiveendmarketsandgovernmentsupportarealsoexpectedto
actasgrowthcatalysts.
IndustryStructure
TheindustrystructureintheUSisfairlysimilartotheonethatexistsinCanada.Generators(retailers,
municipalities,consumers,junkyardsetc)collectscraptiresfromconsumersandhanditoverto
collectors.Theprocessorscollectthetiresfromcollectors,shreditandpasstheproducttomanufacturers
orendmarketsforfinalconsumption.TheindustrystructureisshowninFigure5.
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Figure5.ScraptirerecyclingindustrystructureintheUS
Consumers
Generators
Collectors
Processors
Playgroundsurfacing Tirederivedfuel Civilengineering
ScraptirerecyclinghascomealongwayintheUSsince1990.Whilethenumberofscraptiresgenerated
increasedfrom223millionin1990to290millionin2003(aCAGRof2%),thenumberofscraptires
recycledincreasedfrom24.5millionin1990to233.3millionin2003(aCAGRof19%).Duringthesame
period,recyclingrateincreasedfrom11%to80%.Thegrowthinscraptiregeneration,recyclingandthe
recyclingrateisshowninFigure6.
Figure6.Scraptireindustrygrowth(19902003)
300 100%
250
80%
200
60%
n
150
illio
m 40%
100
20%
50
0 0%
1990 1992 1994 1996 1998 2001 2003
ScrapTiresRecycled ScrapTiresGenerated RecyclingRate
Source:RubberManufacturersAssociation
30
Page31
Californiageneratesthemaximumnumberofscraptires(33millionin2003)followedbyTexas(24
million)andNewYork(20million).Interestingly,despitebeingthelargestgenerator,Californias
stockpilesareonly2millioncomparedwithTexas49millionandNewYorks40million.Thescraptire
generationandstockpilesofeachstatearegiveninTable9.
Table9:Scraptiresgenerationandstockpilesbystate(2003)
Annual Stockpilesin Annual Stockpilesin

State Generation millionsState Generation millions
California 33 2Colorado 4 35
Texas 24 49Arizona 4 NA
NewYork 20 40Oklahoma 3.4 0.66
Florida 19 0.1Connecticut 3.4 20
Illinois 12 0.04Mississippi 3 0.03
Pennsylvania 12 12Iowa 3 1
Ohio 10 20Nebraska 3 2
Michigan 10 25Kansas 2.6 0.16
NorthCarolina 9.6 0.1Arkansas 2.6 0.3
NewJersey 8.4 8WestVirginia 2 0
Georgia 8 0.28Utah 2 0.06
Virginia 7.33 3.2NewMexico 1.8 0.7

SouthCarolina 6.5 0Maine 1.27 1
Massachusetts 6.35 10NewHampshire 1.24 NA
Louisiana 6 0.05Idaho 1.2 NA
Maryland 6 1.7Hawaii 1 1.33
Indiana 6 5.5Nevada 1 NA
Oregon 5.6 0.03RhodeIsland 1 NA
Washington 5.5 6.29Montana 0.8 1
Wisconsin 5.2 NASouthDakota 0.75 0
Tennessee 5 0.3Delaware 0.7 NA
Kentucky 5 0.5Wyoming 0.7 NA
Missouri 5 4NorthDakota 0.65 NA
Alabama 4.4 20Alaska 0.6 NA
Minnesota 4 0Vermont 0.6 NA
TotalUSscraptiregeneration:290million.Totalscraptirestockpiled:271.3million
Scraptiregenerationisexpectedtogrowfurther.Threestateswithalargenumberofstockpiledtires
NewYork,AlabamaandMichiganenactedlegislationin2003toreducetheirstockpiles.These
programscommencein2004andarelikelytoaddsignificantlytothenumberofscraptiresgenerated.
KeySegmentsandPlayers
ThescraptirerecyclingindustryintheUSishighlyfragmented.Theindustrycanbeclassifiedonthe
basisofproductsgeneratedbytheprocessors.Viewedthus,themainsegmentsoftheindustryare:1.
Groundandcrumbrubbermanufacturers2.TDFproducersand3.Manufacturersforcivilengineering
applications.Manylargeplayersmanufacturealltheabove.
31
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MostplayersintheindustrycatertotheTDFmarket,asTDFisthelargestapplicationforscraptires.
However,mostbigplayershavewelldiversifiedrevenuestreamsandavoidrelianceonasinglemarket.
MajorIndustryPlayers
RecoveryTechnologiesGroupisthelargestscraptirerecyclingcompanyintheUSfollowedbyLakin
GeneralCorp.andGreenManTechnologies.Thereishugegapbetweenthetopthreeandtherestin
termsofPTEsprocessed.Thetop20companiesinthemarketonbasisofPTEsprocessedin2003are
listedinthetablebelow:
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Table10:Top20scraptirerecyclingcompaniesinUS(2003)
CompanyCEOor PTEsProcessedIn No.of
Company Address KeyProducts&EndMarkets
President 2003*(million) Facilities
RecoveryTechnologiesGroup(RTG)Inc.7000BoulevardEast,Guttenberg,NJ07093MartinJ.Sergi 37.3 14 Ambientandcryogeniccrumb

rubberTDFcivilengineering
LakinGeneralCorp. 2044N.DominickSt.,Chicago,IL60614 RichardGust 1 30 4 Reusabletiresdiecutproducts
TDFcrumb
GreenManTechnologiesInc. 7KimballLane,Lynnfield,MA01940 BobDavis 28.6 6 TDFcrumbrubber
EmanuelTireCo. 1300MorelandAve.,Baltimore,MD21216 NormanJ. 12.5 5 TDFhorsearenaandplayground
Emanuel covermaterial
TireDisposal&RecyclingInc. P.O.Box83478,Portland,OR97203 MarkW.Hope 6.4 3 TDFcivilengineeringcrumb
rubber
FloridaTireRecyclingInc. 9675RangeLine,PortSt.Lucie,FL34987 JackWilson 6.1 1 TDFdrainfieldaggregate
playgroundsurfacecrumb
TIRESInc. 617Washington,WinstonSalem,NC27107DavidForrester 6.0 3 Crumbrubberforasphalt
pavementandforsportssurfaces
IntegratedTire 333GansonSt.,Buffalo,NY14203 CharlesPiggot 4.5 3 TDFresalabletiresengineering
applications
MeridianInc. 1414NorwichRd.,Plainfield,CT06374 GuyMozzicato 4.5 1 TDFusedtirescasings
MidwayTireDisposal/Recycling 8925E.CentroBlvd.,Fountain,CO80817 VernieHoutchens 4.5 1 Baledforcivilengineering

applications
MacsTireRecyclers Hwy.145North,Saltillo,MS38866 HalMcPherson 4.2 1 ChipsforTDF
ChamplinTireRecycling P.O.Box445,Concordia,KS66901 GaryChamplin 4.0 1 Manufacturedproducts,including
outdoorfurniture
WasteRecoveryWestInc. 372FlorinRd.,Sacramento,CA95831 MarkHope 3.9 4 TDFcrumbrubberreusable

casings
GoldenByProductsInc. 13000NewportRd.,Ballico,CA95303 JimBarstow 3.8 1 2inchTDF3/4inchground
covercivilengineering
EntechInc. 69676M103,WhitePigeon,MI49099 NeilFrey 3.6 1 TDFsepticandlandfilldrainage

materialcrumbrubber
UtahTireRecyclers 1398N.BeckSt.,SaltLakeCity,UT84116 JoeViland 3.5 1 TDFcrumbrubberalternative
dailylandfillcover
FirstStateTireRecycling 22900Hwy.65,E.Bethel,MN55005 MonteNiemi 3.1 1 Civilengineeringapplications
BASRecyclingInc. 1400N.HSt.,SanBernardino,CA92405 MurrayQuance 3.1 1 Crumbrubberbuffingscustom
grinding
EnvironmentalRubberRecycling 6515N.DortHwy.,Flint,MI48505 RogerW. 3.0 2 TDF
Silverthorn
ColtInc. P.O.Box1408,Scott,LA70583 BillVincent 2.5 2 TDFcivilengineering
applications
Source:RecyclingToday
33
Page34
TireDisposalTechnologyTrends
Ambientprocessingisthemostwidelyusedtechnologyforscraptirerecycling.Someofthebigger
playershavecryogenicprocessingfacilitiesaswell.Ingeneral,therecenttrendhasbeeninfavorof
technologythatenablestirestobeshreddedintosmaller,uniformpiecesfreeofsteelandfiber
components.Thissuitsmanycustomerswhodonotwantsteelinrubberanditallowstheprocessorto
sellthesteeltoanotherconsumer.
Inlinewiththistrend,scraptirerecyclingequipmentmanufacturershavebeenintroducingmachinery
thatmeetstheseneeds.Forexample,theEldanHeavyRaspermachinemadebyEldanRecyclingof
Denmarkiscapableofproducing0.75inchtirepiecesorsmalleraswellasa99.9%wirefreeproduct.
ColumbusMcKinnonalsohasintroducedCMLiberator,amachinethatisdesignedtoproducerubber
andsteelmaterialsandcanproduce99%steelfreerubber.
IndustryDrivers
Themainfactorsthatdrivetheindustryaregrowthofendmarketsandgovernmentsupport.
1.Governmentsupport
Thescraptirerecyclingindustryreliesongovernmentsupportforgrowth.Whilegovernmentsupport
hasbeeninstrumentalinthegrowthoftheindustry,itisnotconsistentacrossstates.Further,while35
statescollecttirefees,only19haveincentivesforendmarketsandmanystatesdiverttirerecyclingfunds
forotherpurposes.Withtirederivedfuelcomingunderincreasedscrutinyfromenvironmentalistand
conservationistgroups,regulatorysupportfordevelopmentofotherendmarketsisvitalforthefurther
developmentofthesector.
2.Endmarkets:TheendmarketsforscraptireproductsintheUSarethemostdevelopedintheworld.
Themainendmarketsforscraptireproductsaretirederivedfuel,civilengineeringapplications,ground
rubber,andpunchedandstampedproducts.Thebreakupofscraptireuseamongtheseapplicationsin
2003aswellasthehistoricaldevelopmentoftheendmarketsareshownbelow:
34
Page35
Figure7.Scraptiresendmarkets(2003) Figure8:Endmarketsdevelopment(millionunits)
Punched& 250
Rubber Exports Stamped
Modified
4% Products 200
Asphalt 3% Others
4% 2%
Ground 150
Rubber
100
(without
asphalt)
50
8%
0
TDF
Civil 55% 1994 1996 1998 2001 2003
Engineering
24% TDF CivilEngineering
GroundRubber(withoutasphalt) RubberModifiedAsphalt
Exports Punched&StampedProducts
Others
Source:RubberManufacturersAssociation Source:RubberManufacturersAssociation
TirederivedFuel
TirederivedfuelisthemostimportantenduseforscraptiresintheUSandaccountedfor56%oftotal
recycledtiresin2003.Themostimportantconsumersoftirederivedfuelarecementandutilities
industries.In2005,theTDFmarketisexpectedtoconsume151millionscraptires.Thebreakupofthe
TDFmarketintheUSin2003isshownbelowalongwiththemarketdevelopmentovertheyears.
Figure9.BreakupofTDFusers(2003) Figure10:TDFgrowthbyindustry(millionunits)
Tireto 150
Electricity Energy
125
&Utility 8%
100
31%
75
50
Cement 25
Kilns
0
41%
Pulp/ 1996 1998 2001 2003 2005*
Paper
CementKilns Pulp/Paper
20%
Electricity&Utility TiretoEnergy
Source:RubberManufacturersAssociation Source:RubberManufacturersAssociation,*Extimates
TheTDFmarketisexpectedtoincreasefurtherwiththedevelopmentofASTMspecifications,which
havefacilitatedstandardizationofproduct,loweremissionscomparedwithtraditionalfuelssuchascoal,
risingenergycostsoftraditionalfuelsaswellasincreasedacceptanceofTDF.However,environmental
groupshaveadoptedahostileattitudetowardsTDFandnaturalgasisbecomingamajorcompetitor.
Thesetwofactorscouldhampergrowthprospectsslightly.
35
Page36
CivilEngineeringApplications
Civilengineeringapplicationsforscraptirescontinuetogrow,withtheindustryusing56.4millionscrap
tiresin2003comparedwith40millionin2002.Mainapplicationsinthismarketincludelightweightfill,
drainagelayersforlandfillsandaggregateforseptictankleachfields.Anewapplicationofscraptiresin
thisareaistheirusageasvibrationdampinglayersunderrailwaylines.
Civilengineeringapplicationshavegrownfasterthananyotherapplicationoverthelastfiveyearsand
areexpectedtogrowfurther.Amajorproblemforthismarketisthescraptireprocessorsinabilityto
producetirederivedproductsthatmatchthespecificationsandrequirementsofthecivilengineering
industryinatimelymanner.
GroundRubber
AccordingtotheRMA,about586millionpoundsofgroundrubber(equalto28.2millionscraptires)
weresoldintheUSin2003.Themajorapplicationsforgroundrubberincludeasphalts/sealants,molded
andextrudedproducts,sportssurfacing,newtiremanufacturing,surfacemodification,animalbedding
andhorticulturalapplications.Bulkofthegroundrubberin2003wasusedbymoldedproducts(35%),
sportssurfacing(26%)andasphalt/sealants(20%).Usageofrubberasphalthasdecreasedduetoa
declineindemandfromCalifornia.
Marketsformoldedproducts,sportssurfacingandanimalbeddingareexpectedtoincrease.Theground
rubberprocessormarketwitnessedashakeuprecentlywithsmallerplayersgoingoutofbusinessasthe
marketwassaddledwithovercapacityleadingtopricingpressures.Theindustryhasadoptednew
technologiestolowercosts.
Punched&StampedRubberProducts
Thissegmentconsumed6.5milliontiresin2003.Thesegmentconsistsofvariousproductsthataremade
fromrubberpiecesthatarestampedandcutfromthetires.Demandfromthismarkethasbeenfairly
stableforthepastseveralyears.Thissegmentmainlyusesbiasplytiresorfabricbodiedradialsand
almostalltiresofthesetypesaredivertedbyprocessorstothissegment.However,sincethereis
insufficientsupplyofbiasplytires,thismarketisexpectedtocontractslightlyinthenexttwoyears.
CompetitivePractices&Pressures
Astheindustryishighlyfragmented,competitionisintense.Duetopricingpressuresresultingfrom
overcapacityofcrumbrubber,manyplayershavebeenforcedoutofthemarketorwereacquired.
36
Page37
M&AandJointVentures:Manycompanieshaveusedtheshakeupintheindustrytostrengthentheir
competitivepositionthroughacquisitions.NotableamongtheseisGreenManTechnologies,thethird
largestscraptirerecyclerintheUS.GreenManTechnologiesacquiredUnlimitedTireTechnologies,R&J
RecyclingCompanystirecollectionoperationsandUtahTireRecyclerInc.sIowaoperationsin2002.
StrategicSupplyTieups:Companiestieupwithtiremanufacturersanddealerstotapnewlygenerated
scraptires.Theyalsotieupwithcleanupprogramssoastomakeupfortheslackduringseasonal
slowdownsintheretailmarket.
Regulation
MoststatesintheUShaveenactedregulationthatdealswithscraptirerecycling.Whilesomestateshave
programsthatdirectlyaddressscraptirerecycling,someincorporatethemaspartoftheirsolidwaste
managementprograms.Nineteenstatesofferincentivesforendmarketstoboostdemandfortirederived
fuelandtirederivedproductsand32statesprovidegrantsorloanstoscraptireprocessorsandrecyclers.
Completedetailsofthescraptirerecyclingprogramsandendmarketincentivesofeachstatearegivenin
Table11.
37
Page38
Table11:Scraptireregulationbystate r
e n
r
d ?
?
th tio d nne ndle
.O ram
fO rta ire g from ha
o o u e
d sBa ?
n sp q lR
?
e
ire Prog n?
: n n Up
y d n T wed p tio
b ctio ra n
ire d U blishto
ra
t e llo
lle /T rmitRe isposa sBa d lea xist? n
a ne
ted ted n o qu
u n e D e ire
d E le
o T re ndfill? C
llec sis llec itC rP e/ h ileCm lge
tsEsta
o o cc g itR fill? S fillsA p ra e a
ib o
te Ba A h s? .O ole d n ck rke
eC e eC e llectio
g rm n t/ mLa tiv
e e ro e o tora e
h a u o
to nnuSubsidies/Grants/Loans MarketIncentives Comments:
Sta F Fe F Fe P Fe C Re S P W L C fro M S Prog Ac Ma A
Alabama $1.00 Pertire TireDealerWasteTireFundcreated Yes Yes No No Yes Yes No No Scraptirebillpassed
6/1/2003
Alaska $2.50 Pertire TireDealerAllfundsdivertedto No No No No No No No No Recyclingbillgivespreference

generalfund giventorecycledproducts.
Arizona None na na WasteTireFundcreated Yes Yes Yes Yes Yes Yes Yes No Yes Providesfundstocountiestocontract None
withprivatewastetirecollectors/
processors.
Arkansas $2.00/pass. Pertire TireDealerWasteTireManagement Yes Yes Yes Yes No Yes Yes No No A30%incometaxcreditavailableto 10%pricepreferencegivenfor
$4.00/truck Fundcreated wastemanagementcompanies retreadpurchasesforstate
investinginsolidwaste,including vehicles.Ifretreadedin
tires,reduction,reuse,recycling Arkansas,additional1%
equipment. preferenceadded.
California $1.75 PerTire TireDealerCalif.TireRecycling Yes Yes Yes No Yes Yes Yes Yes Grantsandloansavailableforscrap 5%purchasepricepreferencefor Grantsavailablefrom
ManagementFund tireoperations. Statepurchasedproductsmade CIWMBtopublicand
created.CIWMB withtirederivedmaterials. privateventures.
administersthefund. Requirestheuseofretreadson
$0.75offundgoesto statevehicles.
pollutionprograms.
Colorado $1.00 PerTire TireDealerWasteTirerecycling No No No No Yes Yes No Yes 20%taxcreditforrecycling Statefundingsomeprojectsatthe

DevelopmentCash equipmentpurchases.15%ofFund processorandenduserlevel
Fundcreated availableforrecyclersinruralareas.
30%ofFundavailablefornewscrap
tirerecyclingbusinessstartupcosts.
Connecticut None na na na No Yes No No Yes No No Yes None 10%pricepreferenceforproducts

madewithrecycledmaterials.
Delaware None na na na No Yes No No Yes No No Yes Taxincentives,lowinterestloansto None

businessandindustryusingrecycled
materialsinmanufacturingorto
processrecyclables
Florida $1.00 PerTire TireDealerFundsredirectedto Yes Yes Yes No Yes Yes Yes Yes None Grantstocountiestobuy
otherrecyclingefforts. productsmadefromwastetires.
Scraptiresgetapprox DOTspecifiesrubbermodified
20%offeescollected asphaltforallsurfacingcontracts
Georgia $1.00 PerTire TireDealerAllmoniesinfund Yes Yes Yes No Yes Yes Yes Yes Grantstouniversitiesorgov.agencies None
divertedtogeneralfund forinnovativetechnology
in2004 development,scraptirepilecleanup
Hawaii $1.00 PerTire Importer No No Yes No Yes Yes No No None 10%pricepreferenceforproducts Tiredealersrequired
madewithrecycledmaterials toacceptusedtiresin
exchangefornewones
purchased.
38
Page39
r n d m
e ?
th tio ? m
ne
n
ra
g m ndle
.Or ra
fO rta ired ro g ha
o o sBa ? P
qu dfro ro ?
n sp e lReg d P
: n ? Up
y nne we tion
b ra itR dTire
T Up blishto
ra
t llectio sBa lean n
n o / rm isposa
quired fill? a ne
cted cted u n e D e dde d C
n le
lle lle co itC rP / Tire a ile C lge
sis c e fillsAllo tsEsta
a
o o ib g itR le fill? ShreL p
C Ba C A .O d o
te h s? llectio
g n t/ m n ck ist? rke
e e e e e o e rm u o nnu
e e ro tora e a to Subsidies/Grants/Loans MarketIncentives Comments:
Sta F Fe F Fe P Fe C R S P WhoL C fro M S Ex Active Ma A
Idaho None na na Yes Yes Yes Yes Yes No No Yes Programnolongerinexistence. None
Illinois $2.50 PerTire TireDealer$.50offeecollectedgoes Yes Yes Yes No Yes Yes Yes Yes Grants&lowinterestloansforscrap None $.50fromfeegoesto
towardWestNilevirus tireprocessingfacilitiesandto stateagenciesforWest
eradication,restgoesto promotebeneficialenduses. NileVirusprograms
scraptirefund.
Indiana $0.25 PerTire TireDealerWasteTireManagement Yes Yes Yes Yes No Yes Yes Yes No GrantsforTDFstacktesting(50%of Grantsawardedtogov.agencies
Fund thecost,upto$30,000) topurchaseproductsmadefrom
recycledIndianascraptires
Iowa None Vehicle State WasteTireManagement Yes Yes Yes No Yes Yes Yes Yes LandfillAlternativesFinancial None
Title Fundcreated Assistanceprogramprovidedfunding
forsourcereduction&recycling
programs.Grantssubsidize
processorstoallowsaleratesofwaste
tirematerials.
Kansas $0.25 PerTire TireDealerWasteTireManagement Yes Yes Yes Yes Yes Yes No Yes None None $0.50/tirefeepriorto
Fundcreated 7/1/01.Shredsmay
belandfilledin
monofillsonlyafter
7/1/99.
Kentucky $1.00 PerTire TireDealerWasteTireFundcreated Yes Yes Yes No No Yes No No Salestaxexemption&taxcrediton None
recyclingequipment
Louisiana $2.00 PerTire TireDealerWasteTireManagement Yes Yes Yes Yes No Yes Yes Yes Taxcreditsequalto20%ofrecycling 5%pricepreferenceforState Processorspaidonce
Fundcreated equipmentcosts. purchasesofsupplieswith processedtiresare
specificrecycledcontent. senttoenduse.
Maine $1.00 PerTire TireDealer Yes Yes Yes No Yes Yes Yes None Staterequirespurchaseof Activecivil
recycledmaterialsiffeasibleand engineeringand
environmentallysound. stockpileabatement
programs.
Maryland $0.40 PerTire TireDealerScrapUsedTire Yes Yes Yes No Yes Yes Yes TireDealerkeeps1.2%ofgrosstire 5%pricepreferenceforState Statecurrently
CleanupandRecycling feecollected.Promotesuseoftire purchasesofproductscontaining processesrubberat
Fundcreated.Statehas chipsincementkilns. recycledmaterials. stateownedfacility.
raidedscraptirefunds
Massachusetts None na na RecyclingLoanFund No Yes Yes No No No Yes Recyclingtire 10%pricepreferenceforState

created. purchasesofproductscontaining
recycledmaterials.
Michigan $1.50 Assessedon State ScrapTireRegulatory Yes Yes No No Yes No Yes Grantstocleanupscraptirepiles. 10%pricepreferenceforState
vehicletitle Fundcreated. purchasesofproductscontaining
transfer recycledmaterials
Minnesota None na na Yes Yes Yes Yes No Yes No Yes None None
Mississippi $1.00 PerTire TireDealerEnvironmental Yes Yes Yes Yes No Yes No Yes EnvironmentalProtectionTrustFund None Landfillingrestricted
ProtectionTrustFund allocates25%ofthefundtorecycling in2002.
created anddemonstrationgrants
Missouri None PerTire TireDealerWastetirefeefunds Yes Yes Yes No Yes Yes Yes Grantsfordemonstrationprojectsand None Stateexpectstorenew
created capitalexpendituresforTDFor feeearlyin2004
recyclingintoaproduct.
39
Page40
r n d m
e ?
? ra m
th tio m nne ndle
.Or ra
fO rta ired g g ha
o o u sBa ?
dfro ro ?
n sp lRe P n
: n ? UpProg
y nne wed n tio
b ra itReq osa dTire
T ired a Up blishto
ra
t llectio sBa le
o / isp qu fill? ne
un n dde d C
D e ire n lean
llected llected co / T a ile lge
itC e fillsAllo tsEsta
o o ib ctio g itR le fill? ShreL p e a
.OrPerm d o k
te h lle g o t/ m n rk
o rm h n o ist? a nnu
eeC eeBasis eeC eeAc ro ees? tora e a toc Subsidies/Grants/Loans MarketIncentives Comments:
Sta F F F F P F C Re S P W L Cu fro M S Ex ActiveC M A
Montana None na na na Yes No No No No Yes 25%taxcreditavailableforpurchase Stateinstructedtopurchase Balesnotpermitted.
ofrecyclingandprocessing recycledproductswhenever
equipment. possible,butnotmandated.
Nebraska $1.00 PerTire TireDealerWasteReduction& Yes Yes Yes Yes No Yes No No Grantsavailableforcostsharingfor None $1.25/tondisposalfee
RecyclingIncentive processors,capitalandstartupcosts
Fundcreated forprocessors,manufacturers,
transporters&collectorsofscraptires.
Nevada $1.00 PerTire TireDealerSolidWaste Yes Yes Yes No Yes Yes No No None 10%pricepreferenceforState Mostscraptiresgoing
ManagementAccount purchasesofNevada tolandfills.
manufacturedproducts
containingrecycledmaterials.5%
pricepreferencegiventoallother
recycledproducts.
New None na na na No No Yes No No No Yes None None Townscollectfeesto

Hampshire handleautomotive
wastecollection&
disposal.
NewJersey $1.50 PerTire TireDealerAccountcreated.80%of No Yes Yes No Yes No Yes Lowinterestloansforrecyclingfor LegislationandExecutiveOrder Statepassedprogram
feecollectedgoestothe purchasingrecyclingequipment. requiretheprocurementof in2004.Fundsgoing
generalfund recycledproducts topileabatement/
gen.fund.
NewMexico $1.50 Vehicle State TireRecyclingFund Yes Yes Yes Yes Yes 5%pricepreferenceforState $.50ofthe$1.50now
Registration created. purchasesofproductscontaining collectedgoestothe
recycledmaterials state'sgeneralfund.
NewYork $2.50 PerTire TireDealerDedicatedScrapTire Yes Yes Yes Yes No Yes No No Recycledmaterial,demonstration Scraptirebillpassed
Account.Accountis projectsandrubberasphalt June2003givesNY
subjecttogeneral administeredbyDED,DEC,DOT. firstever
revenuefundsubjectto comprehensivescrap
approvalbylegislature tireprogram
North 2%ofcostof PerTire TireDealer Yes Yes Yes No Yes Yes No Fundsforreimbursementtoimprove None
Carolina tire theuseofrecycledmaterials
NorthDakota $2 New State Yes Yes No No No No Yes None None

Vehicles
SalesFee
Ohio $0.50 PerTire Tire Yes Yes Yes Yes Yes Yes Yes No Loansandgrantsavailabletoscrap None
Wholesaler tirebusinesses.
Oklahoma $1.00/pass. PerTire TireDealerWasteTireIndemnity No Yes Yes No Yes Yes Yes $0.50/tirereimbursementfeeto None Riverbank
$3.50/truck fundcreated. processorsdemonstrating10%oftires stabilizationprojects
comingfromdesignatedillegaltire areeligiblefor
dumps.Additional$0.35/tire $1.50/trucktirewhen
availableiftirecollectionprovidedin sourcesfrompriority
everycounty. dumpsites.
40
Page41
r n d m
e ?
? ra m
th tio m nne ndle
.Or ra
fO rta ired g g ha
o o u e
dfro sBa ? ro ?
n sp lR P n
: n ? UpProg
y nne wed n tio
b ra itReq dTire
T ired a Up blishto
ra
d d t llectio / isposa sBa fill? le ne
o qu dde d C
un n D e ire lean
/ n
llecte sis llecte co itC e T a ile lge
tsEsta
o a o g itR fill? ShreL fillsAllo p e a
ib le o k
te h .OrPerm o d n rk
llectio
g rm h n t/ m o ist? a nnu
eeC eeB eeC eeAc ro ees? o tora e a toc Subsidies/Grants/Loans MarketIncentives Comments:
Sta F F F F P F C Re S P W L Cu fro M S Ex ActiveC M A
Pennsylvania $1.00 PerTire TireDealerAllfundsdivertedfor No Yes Yes No Yes Yes Yes $1millionEnv.TechnologyFund 5%pricepreferenceforState
masstransitsystems offerslowinterestloansforrecycling purchasesofproductscontaining
research&developmentprojectsand recycledmaterials.
recyclingequipmentfunding.
RhodeIsland $1.25 PerTire TireDealerHardtoDispose No Yes No No Yes None None

materialAccount
created
South $2.00 PerTire TireDealerWasteTirefundcreated No Yes Yes No Yes Yes Yes Tiredealersmaykeep3%of$2/tire None
Carolina collectedforadministrationcostsand
$1/tiresenttoapermittedwastetire
recycling/facility
SouthDakota $1.00 Registration State No Yes Yes No Yes No Yes None

Fee
Tennessee $1.00 PerTire TireDealer No Yes Yes No Yes No Yes Grantreimbursementforbeneficial None Eachcountyhaswaste
endusesofwastetires. tirecollectionsite.
DEChascontracted
withprivate
shreddingserviceto
processtiresatcounty
collectionsites.All
tiresbannedfrom
landfillin2002
Texas None na na Yes Yes Yes No Yes None None Staterecently

depletedfundof
almost$5mto
cleanuptwolargest
piles
Utah $0.50 PerTire TireDealerRecyclingFundcreated. Yes Yes Yes No Yes Yes Yes LocalHealthDepartmentsprovide None
recyclersupto$70/tonforTDFor
recyclingintomanufacturedproducts.
Vermont None na na na Yes Yes Yes Yes No No No Yes Marketdevelopmentgrantsprovided 5%pricepreferenceforState

tostimulateinStatedemandfor purchasesofproductscontaining
recycledmaterials recycledmaterials.
Virginia $1.00 PerTire TireDealerWasteTireTrustFund Yes Yes Yes No Yes Yes Yes Enduserreimbursementprogram. None $.50increasein2003
created goestotirefund
Washington None na na na Yes Yes No No No None None

WestVirginia $5.00 Vehicle State Yes Yes Yes Yes Yes Yes No None None Activestockpile
cleanupprogram.
Wisconsin None na na na Yes Yes Yes No No No

Wyoming None na na na Yes Yes No No No No No None None
41
Page42
AssessmentofRegulation
Therehasbeensomeproblemwithregulationwheresunsetprogramsareinvolved.Inasunsetprogram,
thefundingforscraptirerecyclingprogramexpiresafteraspecificdateunlessthestatedecides
otherwise.Whenthefundingstops,recyclingtakesahitandasaresult,theindustrysuffers.
Asplayersintheindustryexpandtootherstates,theygrapplewithregulationsthatareinconsistent
acrossstates.Manyplayersintheindustryprefermorestableregulationanduniformityacrossallthe
statesandregions.
Anotherproblemhasbeenthediversionoffundscollectedforscraptirerecyclingprogramsforother
purposes.Forexample,whileNewYorkcollects$2.50oftirelevy,itonlyallots$1fortherecycling
programandtherestgoestoageneralfund.Fewerfundsmeanlesserrecyclingandlesserindustry
development.
Whilethereispressurefromenvironmentalgroupstobanburningoftiresasfuel,thereisnolegislation
thatactuallydoesso.Suchlegislation,ifenacted,wouldadverselyaffectthescraptirerecyclingindustry,
whichdependsheavilyontheTDFmarket.
Conclusions
Scraptiregenerationshouldincreaseinthenext23yearsasrecentlegislationinthestatesofNewYork,
AlabamaandMichiganmandatestheeliminationofhugestockpilesineachofthosestates.Recycling
ratesarealsoexpectedtomoveup,albeitataslowerpacethanearlier.
Tirederivedfuelisexpectedtoremainthemajorendmarketforthenextfewyears.Thedevelopmentof
ASTMstandardsfortirederivedfuelisexpectedtoboostdemandbyenablingsupplierstounderstand
customerspecificationsbetter.However,civilengineeringapplicationssegmentisexpectedtogrowthe
fastestasASTMspecificationsandstandardshavebeenestablishedforproductsusedinthese
applications.Asaresult,theseproductsarelikelytowinmoreacceptancefromengineerswhohavebeen
reluctanttousetheminthepastforlackofstandards.
Considerablechurnintheindustryhasoccurredintherecentyearsfollowinganexcesscapacityin
crumb.However,therearestillmanyplayerswithlimitedcapacitiesandasthegapbetweenthetop
threeplayersandotherwidensmoreconsolidationisexpectedintheindustrythroughM&Aactivity.
42
Page43
EuropeanUnion
Introduction
TheEUisthesecondlargestscraptiregeneratoraftertheUnitesStates.In2003,EUgenerated2.6million
tonnesofusedtires.TheEUlandfillandELVdirectiveshaveforcedtherespectivenationalgovernments
addressscraptirerecycling.However,theEUhasleftthemethodofimplementingthedirectivesatthe
discretionofthemembercountries.WhileScandinaviancountriessuchasSwedenandFinlandhave
maderemarkableprogressinrecycling,theratesincountriessuchasSpainarestilllow.However,with
thedeadlinesforimplementingthedirectivesfastapproaching,recyclingratesareexpectedtopickup
resultingintheestablishmentofaviableindustry.
Scraptiregeneration
AccordingtoBLIC,2.04milliontonnesofscraptiresin2003.Germanygeneratedthemostnumberof
scraptiresfollowedbytheUK,France,ItalyandSpain.Thesecountriesconstitute80%ofthescraptire
generation.ThescraptiregenerationoverthelastfewyearsandabreakupoftheEUscraptire
generationbycountryareshownbelow.
Figure11:Scraptiregeneration(000tonnes) Figure12:EUscraptiregenerationbycountry(2003)
2,320 Others Germany

2,300 20% 24%
2,280
2,260
2,240 Spain
2,220 11%
UK
2,200
Italy 17%
2,180 France
14%
1996 1998 2000 2002 2003 14%
Source:ETRA Source:ETRA
43
Page44
IndustryStructure
InEurope,thescraptireindustryfunctionsthroughtwoschemes.Theyareindustryresponsibility
schemeandproducerresponsibilityscheme.Intheindustryresponsibilityscheme,producersalongwith
otherindustryplayersassumeresponsibilityforscraptirerecyclingandmanagement.Intheproducer
responsibilityscheme,producersassumeresponsibilityforscraptirerecycling.Inboththecases,
consumerspayfortherecyclingandtirecollectionexpenses.
TheindustrystructureisprettysimilartothatofCanadaandUS.Theindustrystructureisshownin
Figure13.
Figure13.ScraptirerecyclingindustrystructureintheEU
Consumers
Generators
Collectors
Processors
Playgroundsurfacing Tirederivedfuel Civilengineering
44
Page45
Themainproducts,consumersandapplicationsinEuropearelistedinTable12.
Table12:MarketcomparisonofvarioustirederivedproductsintheEU
Product Capitalinvestment Consumers Applications
Wholecut <100,000 100%publicsector Artificialreefs,erosioncontrol,
noisebarriers,stabilization
Shredandchips <1,000,000 80%public,20%privateLightweightfillforconstruction,

roads,insulation,landfill
construction
Granulateandpowders >1,000,000 80%private,20%publicConsumer/industrialapplications,

products,sportssurfaces,some
publiccivilengineeringapplications
Multitreatmentmaterials<10,000,000 95%private,5%public Consumer/industrialproducts,

coatings,someroadconstruction
Upgradedmaterials >10,000,000 95%private,5%public Consumer/industrialproducts,e.g.,

coatings,TPE,pigments
Source:ETRA
Regulation
TheEUhastougheneditsstancetowardsenvironmentalhazardsposedbyscraptires.Aspartofthis,the
EUhasenactedlegislationsthatbanwholescraptiresfrombeinglandfilledfrom2003onwardsand
shreddedtiresfrombeinglandfilledfrom2006onwards.Anotherdirectiveconcerningendoflife
vehiclesstipulatesthatautomotivemanufacturersmustensurethat80%ofthevehicle(byweight)must
berecoverableandrecyclableby2006and95%by2015.Thismeansthatautomotiveandtire
manufacturersmustensurethattirescanberecycledeasily.Further,cementkilnsthatemploywaste
incinerationprocessesandareunabletoengineertheirprocessestomeetrevisedemissionstandardswill
bedecommissionedandtheyarealsobarredfromusingtiresassecondaryfuelfrom2008onwards.
Endmarkets
WhiletheEuropeanmarketissplitalmostequallybetweentirederivedfuelandtirederivedproducts,
tirederivedfuelremainsthemajorendmarketincountrieslikeGermany.Thebreakupoftheend
marketsin2003isshownbelow.
45
Page46
Figure14.Scraptireendmarkets(2003)
Exports
9%
Tirederived
fuel
47%
Tirederived
products
44%
Source:BLIC
Conclusions
ThescraptirerecyclingindustryinEUislikelytogrowfasterthanUSandJapan.WithintheEU,
countrieswithlowrecyclingrateslikeFranceandSpainarelikelytowitnessfasterindustrygrowthrates.
Further,theEuropeanscraptirestatisticsarebelievedtobewidelyunderreported.Sothestockpilesand
scraptiregenerationstatisticsarelikelytobemuchhigher.AsperEUdirectives,allthesehavetobe
recycled.Asaresult,recyclingislikelytowitnessaboom.
While,demandfromthetirederivedfuelandtirederivedproductsismoreorlesseven,demandfortire
derivedproductsmarketisexpectedtoincreasefasteroverthelongtermastighteremissionnormsare
imposedbytheEUonindustriesusingtirederivedfuel.Intheshortterm,tirederivedfuelcouldbenefit,
asthecivilengineeringmarketmightnotbeabletoabsorbtheexcesssupply.Thereasonforthisisthat
demandfromthecivilengineeringindustrytakesmoretimetogetestablished.Asaresult,someofthe
supplycouldendupbeingdivertedtotirederivedfuelmarket.
EndmarketsareexpectedtobenefitfromtheexpansionofEU.Theexpansionwillusherinalarger
marketfortheindustrysproducts,fastergrowingmarketsandmoresourcesofscraptires.
46
Page47
UnitedKingdom
Introduction
TheUKisthesecondlargestgeneratorofscraptiresintheEUafterGermany.AccordingtotheEuropean
TyreRecyclingAssociation,UKgenerated450,000tonnesofscraptiresin2003.Approximately59%of
thesewererecycled.TirefuelandtirederivedproductsarethemostpopularendmarketsintheUK.
MuchliketherestoftheEU,UKtooisintheprocessofestablishingaviablescraptirerecyclingindustry.
ThishasbeennecessitatedbytheEUdirectivesforlandfillsscraptiremanagement.UKhasentrustedtire
manufacturersandimporterswiththeresponsibilityofmanagementandproperdisposalofscraptires.A
separateorganizationTyreRecoveryAssociationhasbeenformedtoestablishindustrystandardsand
overseethedevelopmentoftheindustry.
IndustryStructure
ThescraptirerecyclingindustrystructureinUKisprettysimilartothatfoundelsewhereinthe
developedcountries.Scraptiresaredisposedofbyconsumersneartireretailersandgarages,whichare
collectedbyauthorizedcollectors.Collectorsshipthetirestoprocessorswhoprocessthemasperthe
requirementsoftheendmarkets.Collectorsandprocessorsneedapermittooperateandmostofthem
haveregisteredwiththeTireRecoveryAssociation.TheschematicindustrystructureisshowninFigure
X.
ScrapTireGeneration
About30millionusedtires(equivalentto450,000tonnes)weregeneratedintheUKin2003.Usedtire
generationin2003was3.4%higherthanin2002.Thenumberofusedtiresgeneratedforselectperiodsis
giveninFigure15.
47
Page48
Figure15.Usedtiregeneration(000tonnes)
500
450
400
350
300
250
200
150
100
1996 1998 2000 2002 2003
Source:ETRA
KeyPlayers
ThemainplayersintheUKscraptirerecyclingindustryincludeCharlesLawrenceInternationalLtd,
CredentialEnvironmentalLimitedandSapphireEnergyRecoveryLimited.Importantdetailsofthemain
playersaregivenbelow:
Table13:MajorplayersinUKscraptireindustry
Capacity
Companies (tonnes/year)Products
CharlesLawrenceRecycling 17,5000 Finechips,granulateandpowder
CredentialTyreRecyclingLtd. NA Chipsandgranulate
SapphireEnergyRecoveryLtd. 100,000 Tirederivedfuel
UKTyreProcessors NA Chipsandgranulates
DuralayLtd. 13,000 Finegranulates
WorldRubber NA Granulatesandcrumbforsportssurfacesetc.
SapphireEnergyRecoveryisthelargestcompanyintermsofprocessingcapacity.Thecompanyisajoint
venturebetweenLafargeCementUKandMichelinTyrePLC.Itprocessesscraptiresforuseasfuelin
cementkilns.
IndustryDrivers
Thechiefdrivers,asinothermarkets,aredemandfromendmarketsandregulation.
Endmarkets
Thechiefendmarketsforthescraptirerecyclingindustryaretirederivedproductssuchasshredded
andgranulatedrubberandmoldedproducts,andtirederivedfuel.Somescraptiresareexported,about
48
Page49
70%ofwhichgotootherEUcountries.Exportsaredependentoncurrencyfluctuations.Thebreakupof
thescraptiredestinationsaswellasendmarketsfortheyear2003isshownbelow.
Figure16:Usedtiredestinations(2003) Figure17:Endmarketbreakup(2003)
Landfill Exports
Tire
18% 5%
Reuse& Exports derived
Retreading 3% fuel
23% 29%
Tire Tire Tire
derived derived derived
fuel products products
17% 39% 66%
Source:BLIC Source:BLIC
Themarketfortirederivedproductsismuchlargerthanthemarketfortirederivedfuel.Whiletire
derivedfuelwasthelargestendmarketin1998,itsshareoftotalmarkethasgonedownsincethen.This
ismainlybecausethetirederivedproductsmarkethasexpandedfasterthanthetirederivedfuelmarket.
Asinmostcountries,thechiefconsumeroftirederivedfuelisthecementindustry.Shreddedand
granulatedrubberderivedfromscraptiresisincreasinglybeingusedforsportssurfaces,carpetunderlay
etc.ThegrowthofvariousendmarketsoverthelastfewyearsisshowninFigureX.
Figure18.Scraptireendmarketdevelopment(tonnes)
300,000
250,000
200,000
150,000
100,000
50,000
1998 2000 2003
Tirederivedproducts Tirederivedfuel Exports
Source:UTWG,BLIC
49
Page50
Withimprovementsinrecyclingrates,establishmentofaformalindustrystructureandindustryand
governmentinitiatives,demandfromendmarketslookssettogrowfurther.Strongdemandisexpected
particularlyfromsportssurfacingandcivilengineeringapplicationssuchasleachatedrainageblankets.
Regulation
TheUKhasinitiatedstepstowardsformalestablishmentofregulationsthatwillgoverntheindustry.
However,thegovernmentprefersavoluntaryapproachforscraptirerecyclingfromallparticipantstoa
statutoryapproach,asitbelievesthattheformerwillbemoreeffective.Asperthelatestproposalsissued
bytheDepartmentofTradeandIndustry(DTI),tiremanufacturersandimportersaretoberesponsible
forthemanagementofscraptires.Accordingly,membersoftheTyreIndustryCouncil(TIC),hasformed
theTyreRecoveryAssociationwiththesupportoftiremanufacturers.Manycollectorsandtirerecyclers
havejoinedtheorganization.Theorganizationisintheprocessofintroducingthenecessarystandardsto
meettheregulationsconcerningscraptirerecyclingaswellasincreasingtheeconomicviabilityofthe
industry.
TheEnvironmentAgencyhaslaunchedtheTyreWatchprogramtoreduceillegaldisposalandincrease
tirerecyclingrates.TheBritishParliamentalsopassedlawsbanningtiresfrombeingacceptedinlandfills.
Accordingly,wholescraptiresarebannedfromlandfillsfromJuly2003.Shreddedtiresarebannedfrom
hazardouslandfillsfromJuly2004andnonhazardousandinertsitesfromJuly2006.TheUK
governmenthasprescribedseverefinesandpunishmentforviolationofanyoftheserules.Noparticular
legislationexistsintheUKtoboostdemandfromendmarketsofscraptires.
RecyclingratesareexpectedtoreceiveaboostfollowingthenecessitytocomplywiththeEUdirectives
andtheestablishmentofaformalindustrystructure.
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Germany
Introduction
Germany,theEUsmostindustrializednation,probablyhasthebestscraptirerecyclingrecordamongst
itspeers.Whileitgeneratesmorescraptiresthananyothernation,itrecyclesmostofthem(78%in2003).
TirederivedfuelisthemostimportantendmarketinGermany.Thereisnospecificregulationthat
appliestoscraptires.Therearealsonospecificorganizationsthatcoordinateormanagescraptire
programs.WhileincreasedrecyclingratesareexpectedfollowingEUregulations,highgrowthratesare
unlikelyastheindustryisalreadywelldeveloped.
IndustryStructure
TheindustrystructureisfairlysimilartowhatexistsacrossEurope.Tireretailersandotherscollectscrap
tiresfromconsumers.Collectorstransportthetirestoprocessorswhoprocessthemforendmarkets.
UsedtiregenerationinGermanyhadbeenflatoverthelastfewyearsbeforedecliningin2003.In2003,
Germanygenerated600,000tonnesofusedtires6%lowerthan2002levels.Usedtiregenerationover
thelastfewyearsisshowninFigure19.
700
600
500
400
300
200
100
1996 1998 2000 2002 2003
Source:ETRA
51
Page52
Scraptiregenerationislikelytogrowfurtherasrecyclingratesimprovebutatalesserpacethanother
Europeanpeers.AutomotivedemandinGermanyhasbeenstagnantforthepastfewyears,whichmeans
thatreplacementdemandislikelytobeflatforthenextfewyears.
IndustryDrivers
ThemainindustrydriverisGermanyisthedemandfromtheendmarketssincethereisnoregulation
thatspecificallydealswithscraptires.
Endmarkets
TirederivedfuelisthemainendmarketforscraptiresinGermany.Whiletirederivedfuelaccountedfor
68%oftherecyclingmarketin2003,tirederivedproductsaccountedfor24%.Thebreakupof
destinationsandendmarketsforscraptiresin2003areshownbelow.
Tire Tire
derived Exports derived

Exports
Landfill
products 8% products
6%
7%
19% 24%
Reuse&
Retreading
15%
Tire
Tire
derived
derived
fuel
fuel
68%
53%
Bothtirederivedfuelandtirederivedproductdemandhasrisensteadilyoverthelastfewyears,while
exportshavedeclined.ThegrowthoftheendmarketsovertheyearsisshowninFigure22.
500,000
400,000
300,000
200,000
100,000
1998 2000 2003
Source:UTWG,BLIC
52
Page53
Demandfortirederivedproductsisexpectedtooutpacedemandfortirederivedfuel,sincethetire
derivedproductsmarketisstillinanascentstage.Whiledemandfortirederivedfuelshouldbenefit
fromhigherenergyprices,astillsluggishGermaneconomyandindustrialproductionshouldpartially
offsetit.
Regulation
ThereisnospecificlegislationinGermanyforscraptirerecycling.ThegenerallyapplicablelawistheAct
forpromotingclosedsubstancecyclewastemanagement.Afewwastecategoriesaregovernedby
ordinanceswhileothersaregovernedthroughvoluntaryorganizations.Germanyprefersavoluntary
industryapproachtoscraptirerecyclingtoaregulatoryapproach.
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France
Introduction
ThescraptirerecyclingindustryinFranceisstillinanascentstage.France,beingahighlyindustrialized
countrywithalargeautomotivemarket,generatesalargenumberofscraptires.However,incomparison
withthenumberofscraptiresgenerated,thenumberofscraptiresrecycledislow.Francegenerated
about390,000tonnesofscraptiresin2003ofwhich52%wererecycled.In2004,Francecollectedand
upgraded265,530tonnesofscraptiresorabout30.4milliontires.Themajorityofscraptiresgeneratedin
Franceareusedinlandfills,whiletherestarerecycled.However,therecyclingrateispoisedtogrowas
FrancetightensitslawstocomplywithEUregulationsonlandfillsandrecycling.InlinewiththeEU
directives,FrancehasrecentlyenactedlawstoincreasescraptirerecyclingandachievetheEUgoals
withinthestipulatedtimeframe.
IndustryStructure
TheindustrystructureforscraptirerecyclinginFranceisstillinaformativestageandundergoinga
change.Previously,alargenumberofcollectorscollectedthescraptiresfromgeneratorssuchas
consumersandtireretailersandtransferredthemtotheprocessorswhoeithersentthemtolandfillsor
recycledthem.TheresponsibilityofscraptirerecyclinginFrancenowlieswithAliapur,acompany
representingthesevenmajortiremanufacturersaswellasimporters.CollectorsapprovedbyAliapur
collectscraptiresfromconsumersandarepaidbyAliapur.Thetiresarethensortedon22different
platformsandrecycledaccordinglyforappropriateendmarkets.
ScrapTireGeneration
FranceisthethirdlargestgeneratorofscraptiresintheEU(afterGermanyandtheUK).In2004,France
generated372,330tonnesofusedtires.Thenumberofusedtiresgeneratedhasbeenmoreorlessflatover
thepastfewyears.TheusedtiregenerationdataforselectperiodsisshowninFigure23.
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Figure23:Scraptiregeneration(000tonnes)
600
500
400
300
200
100
1996 1998 2000 2002 2003 2004
Source:ETRA,Aliapur
IledeFranceandRhoneAlpesaretheprovincesthatgeneratethehighestnumberofscraptires.The
numberofscraptiresgeneratedbyeachprovinceinFranceisgivenbelow:
Table14:Scraptiregenerationin2004byprovince
Province ScrapTireGeneration
IledeFrance 66,124
RhoneAlpes 37,122
ProvenceAlpesCoteD'Azur 29,023
NordPasdeCalais 22,878
PaysdeLoire 20,603
Aquitaine 19,343
Bretagne 18,936
MidiPyrenees 17,000
Centre 16,033
LanguedocRousillon 14,745
Lorraine 14,227
Picardie 11,367
HauteNormandie 11,054
PoitouCharente 11,026
Alsace 10,886
Bourgogne 10,721
ChampagneArdennes 9,531
BasseNormandie 9,145
Auvergne 8,720
FrancheComte 7,190
Limousin 4,786
Corse 1,870
Total 372,330
Source:Aliapur
SinceFrancehastraditionallyusedmostofitsscraptiresforlandfills,therearealotoftiresthatneedto
berecycled.Itisestimatedthatthereareabout3milliontonnesofscraptiresthatarerequiredtobe
recycledby2008.
55
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KeyPlayers
MostoftheplayersintheFrenchscraptirerecyclingmarketareverysmall.Itisestimatedthatthereare
about100recyclingcompaniesinFrancethatmaketirewasteforvariousconsumers.Theindustryis
expectedtoundergoconsolidationinthecomingyears.TwowastemanagementmajorsSitaand
Onyxhaveenteredthemarketduetoitsattractivegrowthpotential.Sitaisthewastemanagement
subsidiaryofSuezEnvironmentandOnyxisthewastemanagementsubsidiaryofVeoliaEnvironment.
IndustryDrivers
ThechiefindustrydriversinFrance,asinothercountries,areregulationandendmarkets.However,
regulationistheprimarydriverinFranceatthemoment,astheendmarketsarenotaswelldevelopedas
incountriessuchastheUS.
EndMarkets
TheendmarketsinFrancearestilldeveloping.Mosttiresarenotrecycledandaresenttolandfills
instead.In2003,onlyabout52%ofthescraptiresgeneratedwererecycled,26%werereusedand22%
werelandfilled.Thebreakupofthescraptirerecyclingmarketin2003isshownbelow.
Tire Tire Tire

derivedfuel derived derivedfuel
19% products 37%
33%
Tire
Reuse&
derived
Retreading Landfill
products
26% 22%
63%
56
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Figure26:Scraptireendmarketdevelopment(tonnes)
250,000
200,000
150,000
100,000
50,000
0
1998 2000 2003
Source:UTWG,BLIC
EndmarketsforscraptirederivedproductsinFranceareexpectedtogrowduetotougherregulationon
landfills,strongergovernmentsupportandindustryinitiatives.However,sincethetirederivedfuel
industryisfacingoppositionfromenvironmentalgroups,othersegmentssuchascivilengineering
applications,moldedproductsandotherapplicationsareexpectedtogrowfasterthanthetirefuel
segment.
Regulation
ScraptirerecyclingregulationinFranceisgovernedbyEUregulations.Francehasmadethetireindustry
responsibleforcollectionanddisposalofscraptires.Inresponse,thesevenmajortiremanufacturersin
FrancehaveformedacompanyAliapurtomanagetheprogram.Aliapuriscurrentlyintheprocessof
settingupaviablevaluechainandindustrystructure.Tofinancethescraptireprogram,Aliapurhas
imposedalevyrangingfrom2.6to179.7ontiredistributorsdependingonthetypeandsizeofthetire.
Theindustryhaspassedonthesecostincreasestotheconsumer.Aliapurisalsolookingatwaysto
developendmarketsandisdevotingconsiderableresearchtowardsthis.
Francehasnospecificregulationthatgrantsincentivestoendmarketsforscraptires.Therearealsono
specificcapsonemissionsresultingfromburningofscraptires.Theemissionsareexpectedtobeinline
withthebroaderemissionregulationsinplace.
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Italy
Introduction
ItalyissecondonlytoGermanyintheEUintermsofscraptirerecyclingrates.However,whenexports
areexcluded,ItalysrecyclingratesarelessimpressiveandonparwiththeUKandothercountries.Most
scraptiresinItalywereusuallysenttolandfills.However,withthedeadlinesforachievingEUlandfill
directivesapproaching,therecyclingrateshavegoneupinrecentyears.TherecyclingrateinItalywas
70%in2003,accordingtoBLIC.ThereisnocentralbodyinItalythatoverseesormanagesscraptire
recycling.GuidanceandassistanceforscraptirerecyclingisprovidedbyEco.Pne.Us.avoluntarynon
profitconsortiumformedbytiremanufacturersinItaly.However,Eco.Pne.Us.doesnotparticipatein
anycollectionortreatmentoperations.Theregulatoryframeworkisstillevolving,withalegislationthat
mandatestheformationofanorganizationbymanufacturersandimportersthatwouldberesponsiblefor
scraptirerecycling.
IndustryStructure
UsedtiregenerationinItalyhasbeenflatoverthepastfewyears.However,thestatisticsarenotperfect
andthereisahighdegreeofunderreporting.ThiscanbeseenfromthefactthatwhileItalyhasmore
vehiclesthantheUK,thereportednumberofusedtiresgeneratedismuchlessthanUKs.Accordingto
theETRA,Italygenerated388,389tonnesofusedtiresin2003.Thenumberofusedtiresgeneratedin
selectyearsisshowninFigure27.
58
Page59
450
400
350
300
250
200
150
100
1996 1998 2000 2002 2003
Source:ETRA
KeyPlayers
SomeofthemainplayersintheindustryincludeTritogom,NuovaMeridianaS.p.A.,GranecoAD.RI.A
S.r.l.andCi.Gi.Pi.S.n.c.
Endmarkets
Tillrecently,mostscraptiresinItalyweresenttolandfills.Asaresult,endmarketsarenotwell
developed.Tirederivedfuelisthemajorendmarketforscraptires.Othermarketsincludecivil
engineeringapplicationsandrubbergoods.Asubstantialnumberoftiresareexported.Thedestinations
ofscraptiresandthebreakupofmainendmarketsin2003areshownbelow.
Tire Tire
Exports derived derived
Exports
13% products products
Landfill 19%
20% 29%
8%
Tire
Tire
Reuse&
derived
Retreading derived
fuel
22% fuel
37%
52%
Themarketfortirederivedproductsisexpandingfasterthanthemarketfortirederivedfuel.The
growthisexpectedtocontinueasdemandincreasesfollowingtheimprovementintheindustrysability
toturnoutreliableproductsandensureastablesupply.However,thedemandfortirederivedfuelis
59
Page60
likelytobestrongasitservesasanalternativefuelwithoilandcoalpricesremaininghigh.Thegrowth
ofthevariousendmarketsoverthelastfewyearsisshowninFigure30.
300,000
250,000
200,000
150,000
100,000
50,000
1998 2000 2003
Source:UTWG,BLIC
Whileexportsaresubstantial,itisdoubtfulwhethertheycanbesustained.Countriesaregetting
increasinglyreluctanttoprocessscraptiresofothercountriesastheyfeelitwastesthefundsraisedfrom
theirowncitizens.
Regulation
InItaly,noformalregulationshavebeenmadeaddressingthescraptirerecyclingindustry.TheEU
directives,whileissuingtargetsandguidelines,leavethemethodofimplementationtothemember
states.However,BillC.7594providesfortheformationofabodyrunbymanufacturersandimporters.
Industrieshavetakentheirowninitiativestoimprovetheirprospects.Forexample,severalgranulate
companiesformedConsorzioGranuliGommaCoG.GinSeptember2002,whichisresponsibleforthe
marketingofallrubbergranulateproduction.Therearealsonospecificemissionnormsaimedat
furnacesusingtirederivedfuel.
60
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Spain
Introduction
SpainisthecountrywiththelowestscraptirerecyclingrateamongstallitspeersintheEU.Mostscrap
tiresinSpainaresenttolandfills.In2003,asmanyas60%ofthegeneratedscraptiresweresentto
landfills.Ofthe301,000tonnesofscraptiresgeneratedin2003,only25%wererecycledorexported.The
endmarketstooarenotwellestablished.Therearenoregulationsatthenationallevelthatdealwith
scraptirerecycling.Theregulationsareusuallymadeattheprovinciallevel.Asaresult,whilegrowth
avenuesarepromising,thereisalotofuncertaintyduetothelackofproperpoliciesandregulatory
framework.
IndustryStructure
ScrapTireGenerationAndStockpiles
UsedtiregenerationinSpainhasbeengrowingsteadilyoverthelastfewyears.In2003,Spaingenerated
301,000tonnesofscraptires.Thenumberofscraptiresgeneratedisexpectedtoshowarapidgrowthin
thecomingyearsasSpainhasalargenumberofstockpiledtiresthatneedtobeeliminated.Thenumber
ofscraptiresgeneratedinSpaininselectyearsisshowninFigure31.
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350
300
250
200
150
100
50
1996 1998 2000 2002 2003
Source:ETRA
EndMarkets
Thescraptirerecyclingindustryisverysmallandtirederivedfuelisthemaindriver.Themainusersof
tirederivedfuel,asinothercountries,arecementkilns.Evenequipmentandsupportformanycement
plantsthathaveadoptedtirederivedfuelissuppliedbyUSfirms.Forexample,TMISystemsinstalled
thetirefuelfeedsystemforHornosIbericosAlba,S.A.,acompanybasedinJerez,Spain.In2003,12%of
thescraptiresgeneratedwereusedtomaketirederivedfuelwhile9%wereusedfortirederived
products.Thedestinationofthegeneratedscraptiresandthebreakupoftheendmarketsin2003are
shownbelow:
Tire
derived Tire Tire
Exports products derived Exports derived
4% 9% fuel 16% products
12% 36%
Tire
Reuse&
Landfill derived
Retreading
60% fuel
15%
48%
Thedemandfromendmarketshasrisenrapidlyoverthelastfouryears.Boththetirederivedproducts
andtirederivedfuelmarketshavegrownconsiderably.Thegrowthofendmarketsoverthelastfew
yearsisshowninFigure34.
62
Page63
Figure34.Scraptireendmarketdevelopment(000tonnes)
80
70
60
50
40
30
20
10
1998 2000 2003

Source:UTWG,BLIC
ThegrowthisexpectedtocontinueasSpaintriestoeliminateitsstockpilesandcomplywiththeEU
directives.
Regulation
SpainhasadoptedtheEUdirectivesthroughtheNationalPlanforUsedTyres.Thereisnonationallevel
legislationgoverningscraptirerecycling.Butprovinceshavepassedlegislationthatpromotesintegrated
managementsystemsforscraptirerecycling.TheWasteManagementActof1998providesbroad
guidelinesforscraptiremanagement.WhiletheActstipulatesthatproducersandmarketersofproducts
areresponsibleforwastemanagement,itleavesthemethodadoptedforwastemanagementtothe
producersthemselves.Producerscandeveloptheirowndisposalschemes,formagrouptoimplement
suchschemesorfinancethepublicwastemanagementservice.
TiremanufacturersandimportershaveformedNEDES,anassociationthatprovidesexpertiseandhelps
indevelopingprogramsforimprovingscraptiredisposal.
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Japan
Introduction
Japanisoneoftheforemostrecyclersintheworld.RecyclingisgivenutmostimportanceinJapansince
landisatapremiumandassuchthereisnospaceavailableforlandfills.Asaresult,scraptirerecycling
ratesinJapanarehigherthananyotherdevelopedcountry,andusuallyaveragebetween8590%.About
855,000tonnesofscraptireswererecycledin2003andamajorchunkofthemwereexported.Duetoa
highrecyclingrateandminimalstockpiles,thenumberofscraptiresrecycledisunlikelytogrowata
rapidpace.However,Japanisexpectedtoimproveitsrecyclingrateandreacha100%rateinthefuture.
TirederivedfuelcontinuestobethemostimportantapplicationofscraptiresinJapan,notwithstanding
theplungeinitsdemandinthelasttwoyears.Incontrast,exportofscraptiresisrisingrapidly.
IndustryStructure
ThestructureofthescraptirerecyclingindustryinJapanisnotmuchdifferentfromthestructureofthe
industryinotherdevelopedcountries.TheschematicindustrystructureisshowninFigureX.Scraptires
arisefromtwosources1.Tirereplacementdemand,whereinconsumersreplacetheiragingtireswith
newonesanddiscardtheoldonesand2.Endoflifevehicles,whereintiresarealsodisposedofaspartof
thetotalvehicle.
Individualconsumerstypicallydisposeofoldtiresneardealerswhoincludetireretailers,cardealers,
servicestationsandcarrepairshops.Thedealerssupplythescraptirestothedistributorswhointurn
handitovertotheprocessors.Consumerssuchascar,truckandbuscompaniesusuallydisposeoftheir
scraptiresdirectlytothedistributorsbypassingthedealerssincehighervolumesareinvolved.
Tiresfromendoflifevehiclesaredisposedofbyscrapmetalcompaniesdirectlytocollectionand
processingcompanies.
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TheindustrystructureinJapanisgiveninthefollowingfigure:
Figure35.ScraptirerecyclingindustryvaluechaininJapan
Users
Replacement EndofLifeVehicles
Dealers ScrapMetalCos.
Taxi&TruckCos.
TireFuel
Distributors Collection,Transport&ProcessingCos. Exports
Others
Source:JATMA
ScrapTireGeneration
ScraptiregenerationinJapanwas100million(1.00milliontonnes)in2003.Ofthese,tirereplacement
demandaccountedfor75milliontires(0.77milliontonnes)whileendoflifevehicles(ELV)accountedfor
therest.ScraptiregenerationinJapanfrom1999to2003isshowninTable15.
Table15:Scraptiregeneration(19992003)
1999 2000 2001 2002 2003
Tires(million)73 75 79 78 75
Scraptiresduetoreplacement
000Tonnes 731 792 817 894 780
Tires(million)22 23 24 24 25
ScraptiresfromELVvehicles
000Tonnes 181 187 199 205 224
Tires(million)95 99 103 102 100
Total
000Tonnes 912 979 1016 999 1004
Source:JapanAutomobileTireManufacturersAssociation(JATMA),Irevnaestimates
Whilescraptiregenerationfromendoflifevehicleshavebeenmoreorlessflatforthelast10years,scrap
tiregenerationduetoreplacementdemandhasshownacyclicalpatternwithanupwardtrend(Figure
36).
65
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Figure36:Scraptiregenerationbysource,19942003(millions)
120
100
80
60
40
20
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
TiresScrappedforReplacement TiresfromELVVehicles
TotalScrappedTires
Source:JapanAutomobileTireManufacturersAssociation(JATMA)
ScraptirerecyclinginJapanfrom19942003isshowninthefigurebelow.Similartoscraptiregeneration,
recyclinghasshownacyclicalpatternwithanupwardtrend.
Figure37:ScraptiresrecycledinJapan19942003(000tonnes)
1,000
900
800
700
600
500
400
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Source:JapanAutomobileTireManufacturersAssociation(JATMA)
66
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EndMarkets
InJapan,thebulkofthescrappedtiresareusedforfuelpurposesandamajorchunkoftherestare
exported.Tightsupplyofrawmaterialsandhighenergycostsarethemainreasonsforhighusageoftires
asrawmaterialforfuel.Thebreakupofthescraptiremarketonthebasisofendmarketsaswellasend
marketdevelopmentfrom19992003areshownbelow:
Figure38:Scraptiresendmarkets(2003) Figure39:Endmarketdevelopment(000tonnes)
1,000
Heat 800
Exports
Utilization
31% 600
53%
400
200
Recycled 0
16% 1999 2000 2001 2002 2003
TireDerivedFuel Recycled Exports
Source:JATMA Source:JATMA
TireDerivedFuel
In2003,about45%ofthegeneratedscraptires(byweight)wereusedforheatutilizationpurposes.The
bulkofitwasaccountedbythecementindustry.However,usageofscraptiresforheatutilizationhas
comedownfrom63%in2001to44%in2003.Thisismainlyduetothedeclineinusageofscraptiresas
fuelincementindustry.Usageofscraptiresasfuelincementkilnsdeclinedfrom37%oftotalscraptire
generation(byweight)in2000to24%in2003.Thefallismainlyduetothedeclineinthenumberof
publicworksbeingexecutedandusageofotherwasteasfuel.Useofscraptiresasfuelinboilersdeclined
duetoregulatorypressures.TheusageofscraptiresasfuelislikelytofallfurtherasJapancomesunder
pressuretoreduceitsgreenhousegasemissionsaspartoftheKyotoProtocolandnewermarket
applicationsofscraptiresareintroduced.However,asenergypricesrulehigher,scraptiresmightattract
interestasanalternativefuel.However,thisisunlikelytooffsetthefallindemandfromcementkilns.
Thebreakupofscraptirefuelmarketin2003isshowninFigure40.
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Figure40:Segmentalbreakupofscraptirefuelmarket(2003)
MetalRefining ElectricPower
5% Generation
Boilers
2%
5%
TireMfg.
9%
CementKilns
SteelMfg.
52%
11%
PaperMfg.
16%
Source:JATMA
ReclaimedandPowderedRubber
Reclaimedandpowderedrubberusagewas97,000tonnesin2003,upfrom93,000tonnesin2002.The
mainmarketsforthissegmentaremoldedproducts,newtiresandotherrubberapplications.Thisis
expectedtogrowfurtherinthefutureasthetirederivedfuelmarketcontinuestodeclineandthe
industrytriestopromotescraptirerecyclingandalternativeendmarkets.Forexample,Bridgestonehas
developedarubberadditivefromcrushedscraptiresthatcanbeusedinpavements.Thecompanyhas
alsorecycled70%ofthetiresithasrecalledduetotheFordSUVaccidents,whichwereblamedon
Firestonetires.
Exports
Exportscompensatedforthefallindomesticusebyincreasingfrom95,000tonnes(9%oftotal)in2000to
268,000tonnes(26%oftotal)in2003.ExportsaremuchhigherinJapansincethereisnotmuchspacefor
landfills.
Regulation
Japanhasnospecificlawsregardingscraptirerecycling.Theissuehasalwaysbeendealtaspartofsolid
wasterecycling.Furthermore,Japanhasalongrunningcooperativeprogramthatcooptstire
manufacturers,governmentagenciesandotherindustryplayersforscraptirerecycling.Inaddition,there
arenospecificregulationsgoverningemissionsfromburningscraptires.Theemissionsareexpectedto
meetthebroaderemissionregulationsissuedfromtimetotime.
TheJapaneseEndofLifeVehicleRecyclingLawtargetsa90%recyclingrateoftiresonendoflife
vehiclesby2005.Thiswouldgiveafurtherimpetustotirerecycling.Therecyclingratesareexpectedto
improvefurtherasJapantightensitsregulationandtriestoimproveconsumptionfromendmarkets.
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Conclusions
Scraptiregenerationislikelytobeflatinthewakeofstagnantautomotivedemand.Industrygrowth
ratesinJapanarelikelytotaperoffduetopeakingofrecyclingratesandthelackofanysignificant
stockpiles.
Theindustryistoodependentontirederivedfuelandthereisaneedtodevelopotherendmarkets.The
tirederivedfuelmarkethasbeendecliningforthepastfewyearsbuthasbeenoffsetbyariseinexports.
Anysubstantialfallinexportscouldleadtoasupplyglutinthedomesticmarketresultinginafallin
prices.
69
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GLOSSARY
Additive
Aminorconstituentoftiresaddedtoconfersomerequiredcharacteristic(s).
Aromaticpolyamide
Typeofsyntheticpolymerusedintireconstructionagroupofchemicalcompoundscontainingaromatic
ringsforexampleKevlar.
Bead
Portionofmountedtirethatisshapedtofitthewheelrimcomposedprimarilyofacircularcord
(assembly)ofstrandsofhightensilesteelwire.
Beadsteel(orwire)
Steelwirecontainedwithinthetirebead.
Belt
Anassemblyoffabric,wire,orbothusedtoreinforcethetiretread.
Beltsteel(orwire)
Steelwirelocatedwiththefabriclayerimmediatelybelowthetread.
Biastire
Tireassemblycomposedoftwoormorepliesthatarepositionedat30to45degreestothecenterlineof
thetread.
Body
Tireassemblyexceptfortreadandsidewallrubber.
Bodysteel(orwire)
Steelwirecontainedwithintheplies.
Component
Partofawholeormixtureforexample,atypeofmaterial,suchasnaturalrubber,isacomponentof
wastetires.
Composition
Themakeuporconstitutionofawholeormixturecollectively,theindividualcomponentsofawholeor
mixturecommonlyexpressedasapercentageofthewhole.
Constituent
Samemeaningascomponent.
70
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Cord
Anassemblyoftwistedstrandsoffiberscomposedofplasticresin(s),suchaspolyesterorrayon,orsteel,
thatprovidestiresandbeltswithstrength.
Crumbrubber
Finelysizedrubberproductrecoveredfromwastetires.
Fiber
Naturalorsyntheticfiberusedintireconstruction.
Nylon
Typeofsyntheticpolymerusedintireconstruction.
Plies
Thefabriclayersthatcomposethecordbodyofthetire.
Polyester
Polymer
Alongchainchemicalcompoundcomposedofmanysmaller,identicalmolecules.
Radialtire
Tireconstructedsuchthatthepliesunderliethetreadat90degrees.
Rayon
Rubber
Naturalorsyntheticrubber.
Sidewall
Portionoftireassemblybetweentheedgeofthetreadandthebead.
Tirederivedfiber
Fiberseparatedfromwastetiresasaconsequenceofprocessing.
Tirederivedfuel(TDF)
Materialshavingfuelvaluerecoveredfromwastetires(mostcommonlytherubbermaterials,butalso
canincludefiber).
Tirederivedsteel
Steelseparatedfromtheothercomponentsofwastetiresasaconsequenceofprocessing.
71
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Tread
Portionoftirethatcontactstheroadsurface.
Vulcanization
Thethermalprocess(underpressure)thatchemicallylinksrubbercompoundsandpolymerstogether,
forminganelasticmixture.
Wastetire
Atirethatisnolongermountedonavehicleandisnolongersuitableforuseasavehicletiredueto
wear,damage,ordeviationfromthemanufacturer'soriginalspecifications.Awastetireincludesa
repairabletire,scraptire,andalteredwastetire,butdoesnotincludeatirederivedproduct,crumb
rubber,orausedtirethatisorganizedforinspectionandresalebysizeinarackorastack.
72

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Tire Recycling Industry

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12/23/2016 TIRERECYCLINGINDUSTRY

ScrapTire 4,139,100 317,520 1,004,000 372,330 600,000 450,000 388,389 301,000

Existingstockpiles 2 271 34 Minimal NA NA NA NA NA

Recyclingrates 80% 86% 52% 78% 59% 70% 25%

MainendmarketsTirederivedfuel, Varyacrossstates, TirederivedfuelTirederived TirederivedfuelTirederived TirederivedfuelTirederivedfuel

Regulation Atstatelevel Atstatelevel Regulatedaspart Manufacturersand Nospecific Wholeand Regulatory Regulationexistsat

Stewardship YesAtstate YesAtstatelevelNone None,butAliapur None None,butTyre None None

Competition Intense High

Othercomments Highlyadvanced Wellestablished

TireRetailers VehicleRecyclers Municipalities

TireDerivedFuel CivilEnggApplications OtherRubberProducts

1999 2000 2001 2002 2003

RecoveryTechnologies Ontario 2.9millionPTE Crumbandrubber Ambient

AlbertaEnvironmental Alberta 2.3millionPTE Shredandcrumb Ambient

ChampagneEditionInc. Alberta 2.3millionPTE Crumbandrubber Ambient

NRIIndustriesInc. Ontario 1.6millionPTE Crumband Ambient

ChathamRubber Ontario 1.2millionPTE Crumbandshred Ambient

Envirotherm Ontario 1.0millionPTE ShredforTDF Ambient

TireRecyclingAtlantic NewBrunswick 0.851.0millionPTE Crumbandrubber Ambient

AtlanticRecycledRubber NovaScotia 0.9millionPTE Crumb Cryogenic

TyretekIndustries Ontario 0.5millionPTE Crumb Ambient

AnimatInc Quebec NA Shred,crumband Ambient

Scopcat Quebec NA Shredandcrumb Ambient

Feecollection FinanceMin. Retailersremit Retailersremit FinanceMin. FinanceMin. Retailersremit Retailers Retailers

Feespaidto Processorson Processorson Processorson Processorson Processorson Processorson Processors Government

Transporters Processors Transporter Municipalities Transporters Processors

Feepertire $3.00onallnew $4.00onall $3.50sm. $3.00onall $3.00onalltires $3.00small $3.00small $2.00onall

Annualtiresales 3.5M 2.75M 0.9M 0.8M 5.7M 1.0M 0.7M 0.1M

TotalCollected $10.5M $11M $3.1M $2.2M $17M $2.6M $2.9M $0.2M

Landfill None None None None Bannedfrom None Banned None

Playgroundsurfacing Tirederivedfuel Civilengineering

1990 1992 1994 1996 1998 2001 2003

ScrapTiresRecycled ScrapTiresGenerated RecyclingRate

Annual Stockpilesin Annual Stockpilesin

Virginia 7.33 3.2NewMexico 1.8 0.7

RecoveryTechnologiesGroup(RTG)Inc.7000BoulevardEast,Guttenberg,NJ07093MartinJ.Sergi 37.3 14 Ambientandcryogeniccrumb

MidwayTireDisposal/Recycling 8925E.CentroBlvd.,Fountain,CO80817 VernieHoutchens 4.5 1 Baledforcivilengineering

WasteRecoveryWestInc. 372FlorinRd.,Sacramento,CA95831 MarkHope 3.9 4 TDFcrumbrubberreusable

EntechInc. 69676M103,WhitePigeon,MI49099 NeilFrey 3.6 1 TDFsepticandlandfilldrainage

Alaska $2.50 Pertire TireDealerAllfundsdivertedto No No No No No No No No Recyclingbillgivespreference

Colorado $1.00 PerTire TireDealerWasteTirerecycling No No No No Yes Yes No Yes 20%taxcreditforrecycling Statefundingsomeprojectsatthe

Connecticut None na na na No Yes No No Yes No No Yes None 10%pricepreferenceforproducts

Delaware None na na na No Yes No No Yes No No Yes Taxincentives,lowinterestloansto None

Massachusetts None na na RecyclingLoanFund No Yes Yes No No No Yes Recyclingtire 10%pricepreferenceforState

New None na na na No No Yes No No No Yes None None Townscollectfeesto

NorthDakota $2 New State Yes Yes No No No No Yes None None

RhodeIsland $1.25 PerTire TireDealerHardtoDispose No Yes No No Yes None None

SouthDakota $1.00 Registration State No Yes Yes No Yes No Yes None

Texas None na na Yes Yes Yes No Yes None None Staterecently

Vermont None na na na Yes Yes Yes Yes No No No Yes Marketdevelopmentgrantsprovided 5%pricepreferenceforState

Washington None na na na Yes Yes No No No None None

Wisconsin None na na na Yes Yes Yes No No No

2,320 Others Germany

Playgroundsurfacing Tirederivedfuel Civilengineering

Shredandchips <1,000,000 80%public,20%privateLightweightfillforconstruction,

Granulateandpowders >1,000,000 80%private,20%publicConsumer/industrialapplications,

Multitreatmentmaterials<10,000,000 95%private,5%public Consumer/industrialproducts,

Upgradedmaterials >10,000,000 95%private,5%public Consumer/industrialproducts,e.g.,

1996 1998 2000 2002 2003

Tire Tire Tire

derived derived derived

fuel products products

17% 39% 66%

1998 2000 2003