How To Profit From Tyre Recycling: 4 Proven Strategies

Millions of tyres are thrown away every year. This opens the door to both opportunities and challenges! As they can be disposed of in landfills and cause environmental pollution. Or they can be recycled to get some valuable products. 

Tyres contain valuable materials such as rubber, steel, and carbon black. This means it’s up to us to let them waste in landfills or extract the treasure they contain. 

Yes, we can actually produce amazing products from recycling tyres. Let’s find out how to profit from tyre recycling. 

Ready to learn? Let’s start!

4 Reasons Why to Invest in Tyre Recycling?

1. High Demand for Recycled Products

There’s a growing need for recycled materials like: 

• Crumb rubber
• Pyrolysis oil
• Carbon black

Construction and manufacturing industries constantly seek these products. Recycling tyres lets you meet that demand and profit from a valuable market.

2. Positive Environmental Impact

Tyre recycling helps stop tyre dumping in landfills and, in turn, reduces pollution. So why not invest in it? It’s the best way to grow in the business world and support sustainability.

3. Government Support

To encourage recycling, many governments offer incentives like: 

• Subsidies 
• Tax breaks 

These financial benefits can help reduce your startup costs. It is a great way to make the business more affordable. 

4. Low Raw Material Costs

Tyres are inexpensive to collect, often available for free or at low prices from scrap yards. This keeps your material costs low, making tyre recycling a profitable venture. 

You can easily source tyres, which gives you a steady and affordable raw material supply.

How to Profit from Tyre Recycling

1. Choose the Right Business Model

The type of model you select for your tyre recycling business plays a very important role in the overall success. You must select the appropriate model to obtain maximum profit. 

For example, someone just beginning and without much of an investment should start small.  So, consider going for a smaller-scale tyre recycling setup in that case. 

You can take the example of TreadWright Tires. It is a small tyre recycling business that’s doing really well. They take used tyres and give them new life by retreading them. This keeps costs low and helps the environment. 

On the other hand, if you have good insights into this business, you should consider investing more in advanced machinery. High-demand products require the right equipment to be produced efficiently and in large quantities.

Source

Also Read: Tyre Recycling Business Setup | Easy Guide to Start

2. Set Up an Efficient Process

You have to set up your recycling business very wisely. This means creating an efficient process with low costs and valuable output.

To do this, invest in energy-efficient machinery. It minimizes energy consumption. Some examples of machinery are shredders, granulators, and pyrolysis equipment. These are designed to process tyres efficiently. 

Spending a lot initially may feel overwhelming, but these machines reduce long-term operational costs by consuming less power. This saves money and lowers your environmental footprint as well.

Another way to get the most out of this recycling business is to extract and sell all the components of tyres. For instance:

• Rubber: You can get crumb rubber by shredding tyres. This material is valuable for road construction, playground surfaces, and sports fields.
• Steel: You can separate steel wires from tyres using special machines. This steel can be sold to metal recycling plants or directly to manufacturers.
• Gas: Tyres release synthetic gas during pyrolysis. This gas can generate energy and also be sold as fuel.

3. Expand Your Revenue Sources

Tyre recycling can provide you with multiple revenue streams. So, you don’t have to rely on just one income source. You can explore various ways to maximize profit.

Here are some ways to explore:

1. Sell Recycled Materials

As discussed above, tyres contain valuable components that can be sold to various industries. For example:

• Crumb rubber
• Pyrolysis oil
• Carbon black 

These are widely used in different sectors. Consider the example of Liberty Tire Recycling. It is one of the largest tyre recyclers in the U.S. It sells products like crumb rubber to the construction industry.

2. Create Value-Added Products

In addition to selling raw materials, you can create and sell finished products. This approach can lead to a more steady income. For example, you can sell:

• Rubber mats
• Furniture
• Playground surfaces

3. Provide Collection Services

In the tyre recycling business, you just don’t need to recycle tyres for yourself. You can help other recyclers by offering collection services. Many businesses struggle to dispose of old tyres responsibly. So, they are willing to pay well for this service.

Tyre Collection Australia helps businesses and local councils get rid of old tyres. They offer collection services all over the country. 

4. Use Effective Marketing Tactics 

A strong strategy puts you ahead of any business. Do the same for your tyre recycling business. Market Strategically!

Focus on the benefits your business brings to humanity. Highlight eco-friendly products like crumb rubber and pyrolysis oil. Show how you reduce landfill waste and fight pollution.

Simply present yourself as environmentally responsible. Genan does this well. They focus on sustainability and attract positive attention.

You can also partner with businesses in automotive or manufacturing to expand your reach. Just keep your message clear and impactful. A thoughtful marketing approach will set you apart and draw customers in.

FAQs

1. Is tyre recycling profitable?

Yes, tyre recycling is profitable. Here’s why:

• High demand for recycled rubber in industries.
• Sell products like crumb rubber, mulch, or TDF.
• Support through grants and subsidies.

2. How do you make money from old tyres?

Making money from old tyres is achievable through creativity and effort. Some profitable options include:

• Selling crumb rubber for playgrounds and asphalt.
• Creating rubber mulch for landscaping.
• Making TDF for energy.
• Upcycling tyres into furniture and decor.
• Exporting recycled rubber to other countries.

3. How do I open a tyre recycling company?

Starting a tyre recycling company involves the following steps:

• Research market demand and competitors.
• Secure funding through loans or savings.
• Focus on a niche like crumb rubber or TDF.
• Obtain necessary licenses.
• Invest in equipment like shredders.
• Build partnerships with suppliers and buyers.
• Promote your business to attract customers.

4. Is there a market for recycled rubber?

Absolutely! There is a market for recycled rubbers, and it is growing really fast. Common buyers include:

• Construction companies
• Playground manufacturers
• Automotive Industries
• Export markets

Final Words

Tyre recycling is a solution to growing environmental pollution. It also provides an opportunity to turn waste into vast wealth. From selling crumb rubber and pyrolysis oil to creating innovative products and offering collection services, the revenue streams are diverse and promising.

If you need any help growing your tyre recycling business, contact us today!