Capital requirements generally include land acquisition, construction, equipment procurement, installation, pre-operative expenses, and initial working capital. The total amount varies with capacity, technology, and location.
To start a waste tyre recycling business, one needs to conduct a market feasibility study, secure required licenses, arrange funding, select suitable land, procure equipment, recruit skilled labor, and establish a supply chain and distribution network.
Waste tyre recycling production requires waste tyres as the primary raw material, along with catalysts or additives depending on the recycling method (e.g., pyrolysis).
The waste tyre recycling factory typically requires a tyre shredder, steel wire remover, granulator or crusher, and magnetic separator. For advanced processes like pyrolysis, it also includes a pyrolysis reactor, oil condenser, gas recovery system, and pollution control units.
The main steps generally include:
Collection and sorting
Pre-treatment (cleaning and wire removal)
Shredding
Granulation
Separation (metal and fiber removal)
Processing (e.g., pyrolysis or molding)
Packaging and distribution
Usually, the timeline can range from 12 to 36 months to start a waste tyre recycling plant, depending on factors like planning, securing permits, procuring equipment, and setting up infrastructure. The timeline may vary based on location, plant size, and regulatory approvals.
Challenges may include high capital requirements, securing regulatory approvals, ensuring raw material supply, competition, skilled manpower availability, and managing operational risks.
Typical requirements include business registration, environmental clearances, factory licenses, fire safety certifications, and industry-specific permits. Local/state/national regulations may apply depending on the location.
The top waste tyre recycling manufactures are:
Lehigh Technologies, Inc.
Liberty Tire Recycling
GRP LTD
ResourceCo
Davis Rubber Company Inc.
Tyre Recycling Solution
Genan Holding A/S
Profitability depends on several factors including market demand, production efficiency, pricing strategy, raw material cost management, and operational scale. Profit margins usually improve with capacity expansion and increased capacity utilization rates.
Cost components typically include:
Land and Infrastructure
Machinery and Equipment
Building and Civil Construction
Utilities and Installation
Working Capital
Break even in a waste tyre recycling business typically range from 3 to 5 years, depending on production capacity, market demand, operational efficiency, and initial investment costs. Proper planning and consistent output can shorten the payback period.
Governments may offer incentives such as capital subsidies, tax exemptions, reduced utility tariffs, export benefits, or interest subsidies to promote manufacturing under various national or regional industrial policies.
Financing can be arranged through term loans, government-backed schemes, private equity, venture capital, equipment leasing, or strategic partnerships. Financial viability assessments help identify optimal funding routes.