Starting a tyre recycling business in Australia offers a promising opportunity to contribute to environmental sustainability while tapping into a lucrative market. With over 563,000 tonnes of new tyres purchased annually and around 459,000 tonnes of waste tyres generated each year, there’s a significant need for effective recycling solutions.
How to Start a Tyre Recycling Business in Australia
Step 1: Conduct Thorough Research
Before launching your tyre recycling business, comprehensive research is essential. Understanding the local market, regulatory environment, and logistics of tyre collection and processing will help you make informed decisions.
Market Demand
Identify the demand for recycled tire products in your region. In Australia, recycled tires are used in industries such as construction, civil engineering, manufacturing, and energy plants, or they are exported.
Location:
Choose a strategic location with access to tyre suppliers and customers. Consider proximity to transport hubs to reduce logistics costs.
Regulatory Compliance:
Familiarise yourself with local, state, and federal regulations governing tyre recycling. The National Tyre Product Stewardship Scheme supports Australia’s tyre recovery industry. The scheme’s objective is to increase the recovery and recycling of waste tyres and develop Australia’s tyre recycling industry while minimising environmental, health, and safety impacts.
Step 2: Choose Your Niche
Focusing on a specific niche can help you establish a strong market presence. The three main types of tyre recycling are:
Tyre-Derived Fuel (TDF):
Used as an alternative fuel in industries such as cement manufacturing.
Civil Engineering Applications:
Recycled tyres are commonly used in road construction, drainage systems, and erosion control.
Crumb Rubber:
Processed into fine rubber particles for use in athletic surfaces, playground mats, and asphalt.
Select a niche based on local demand and your business goals.
Step 3: Secure Funding
Starting a tyre recycling business requires significant investment. Here are some options for securing funding:
Small Business Loans:
Approach banks or financial institutions for loans tailored to your business needs.
Venture Capital:
Green and eco-friendly businesses often attract venture capital funding.
Government Grants:
Explore state and federal grants designed to support waste management and recycling projects.
Step 4: Understand Tyre Consumption, Waste, and Recovery in Australia
Australia generates approximately 459,000 tonnes of waste tyres each year, with a recovery rate of around 70%, equating to about 330,000 tonnes.
The majority of recovered tyres come from passenger and truck tyres, with a recovery rate of 89%. However, off-the-road (OTR) tyres have a much lower recovery rate of only 12%. Despite these efforts, around 142,600 tonnes of tyres are not recovered and end up in landfills or illegally dumped.
Consumption of new tyres*
Australians purchase on average around 563,000 tonnes of new tyres annually.
Generation of waste tyres*
Australia generates on average around 459,000 tonnes of waste tyres annually to be recovered for beneficial use or disposal.
Recovery of waste tyres*
Australia recovers on average around 330,000 tonnes of waste tyres annually. This is approximately 70% of the waste tyres generated.
The market for tyre-derived products is heavily reliant on international exports, which currently represent about 80% of the market. However, a recent ban on the export of whole and baled tyres, implemented in December 2021, may impact future export volumes.
Step 5: Invest in the Right Equipment
The success of your tyre recycling business will depend on the quality and efficiency of your equipment. Waste Initiatives offers a range of machinery tailored to different recycling processes:
Shredders:
Machines such as the entry-level two-shaft GL2180 and the mid-sized GL32120 shred tyres into smaller, manageable pieces, ready for TDF. They are often referred to as pre-shredders.
Tyre De-Beaders:
Essential for removing the steel beads from tyres before shredding, ensuring more efficient processing.
Granulators and Rubber Mills:
These machines further process shredded tyres into crumb rubber or rubber powder, ready for use in various applications.
Tyre Balers:
For businesses focusing on compacting tyres, heavy-duty balers like the WP 550 HD and HX800 can produce dense, mill-sized bales suitable for transport or further processing.
Conveyors and Sorting Lines:
Streamline the recycling process, from shredding to sorting.
Conclusion
Starting a tyre recycling business in Australia is a promising venture that aligns with the growing focus on sustainability. By conducting thorough research, choosing the right niche, securing adequate funding, and investing in quality equipment, you can establish a successful business that contributes to environmental preservation. Waste Initiatives is here to support your journey, offering the expertise and equipment needed to make your tyre recycling business a success.
Read more about our TYRE RECYCLING SYSTEMS