TIRE RECYCLING INDUSTRY - Global Research & Analytics

TIRE RECYCLING INDUSTRY 

A Global View

Tire Recycling Industry: A Global View 

Table of Contents 

Executive Summary....................................................................................................................................................6 

Industry Overview .....................................................................................................................................................7 

Country Profiles........................................................................................................................................................13 

Canada....................................................................................................................................................................13 

USA.........................................................................................................................................................................29 

European Union ...................................................................................................................................................43 

United Kingdom................................................................................................................................................47 

Germany .............................................................................................................................................................51 

France ..................................................................................................................................................................54 

Italy......................................................................................................................................................................58 

Spain....................................................................................................................................................................61 

Japan .......................................................................................................................................................................64 

Glossary .....................................................................................................................................................................70 

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List of Figures 

Canada 

1. Scrap tire recycling industry structure in Canada………………………………………………14 

2. Monetary flows in the Canadian scrap tire recycling industry………………………………..14 

3. Scrap tire usage in Canada (2002) ………………………………………………………………..15 

4. Used tire generation (‘000 units) …………………………………………………………………16 

United States 

5. Scrap tire recycling industry structure in the US………………………………………………..30 

6. Scrap tire industry growth (1990-2003) ………………………………………………………….30 

7. Scrap tires end-markets (2003) ……………………………………………………………………35 

8. End markets development (million units) ………………………………………………………35 

9. Break-up of TDF users (2003) ………………………………………………………………….….35 

10. TDF growth by industry (million units) …………………………………………………………35 

European Union 

11. Scrap tire generation (‘000 tonnes) ……………………………………………………………….43 

12. EU scrap tire generation by country (2003) ……………………………………………………..43 

13. Scrap tire recycling industry structure in the EU……………………………………………….44 

14. Scrap tire end markets (2003) …………………………………………………………………….46 

United Kingdom 

15. Used tire generation (‘000 tonnes) ……………………………………………………………….48 

16. Used tire destinations (2003) ……………………………………………………………………..49 

17. End-market break-up (2003) ……………………………………………………………………..49 

18. Scrap tire end-market development (tonnes) …………………………………………………..49 

Germany 

France 

Italy 

19. Used tire generation (‘000 tonnes) ………………………………………………………………51 

20. Used tire destinations (2003) …………………………………………………………………….52 

21. End-market break-up (2003) …………………………………………………………………….52 

22. Scrap tire end-market development (tonnes) …………………………………………………52 

23. Scrap tire generation (‘000 tonnes) ……………………………………………………………..55 

24. Used tire destinations (2003) ……………………………………………………………………56 

25. End-market break-up (2003) …………………………………………………………………….56 

26. Scrap tire end-market development (tonnes) …………………………………………………57 

27. Used tire generation (‘000 tonnes) ……………………………………………………………..59 

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28. Used tire destinations (2003) ………………………………………………………………….59 

29. End-market break-up (2003) ………………………………………………………………….59 

30. Scrap tire end-market development (tonnes) ……………………………………………….60 

Spain 

31. Used tire generation (‘000 tonnes) …………………………………………………………...62 

32. Used tire destinations (2003) …………………………………………………………………62 

33. End-market break-up (2003) …………………………………………………………………62 

34. Scrap tire end-market development (‘000 tonnes) …………………………………………63 

Japan 

35. Scrap tire recycling industry value chain in Japan…………………………………………65 

36. Scrap tire generation by source, 1994-2003 (millions) ……………………………………..66 

37. Scrap tires recycled in Japan 1994-2003 (‘000 tonnes) ……………………………………..66 

38. Scrap tires end markets’ (2003) ……………………………………………………………...67 

39. End-market development (‘000 tonnes) ……………………………………………………67 

40. Segmental break-up of scrap tire fuel market (2003) ……………………………………..68 

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List of Tables 

Industry Overview 

1. Calorific values of TDF and other fuels……………………………………………………………. 8 

2. Scrap tire recycling industry status in various countries…………………………………………11 

Canada 

3. Canadian scrap tire generation by state 2002………………………………………………………17 

4. Canadian scrap tire stockpiles by state……………………………………………………………..17 

5. Major scrap tire recycling companies in Canada…………………………………………………..21 

6. Comparison of Ambient and Cryogenic technologies…………………………………………….22 

7. Comparison of scrap tire management programs across various Canadian provinces………. 26 

8. Incentives for various scrap tire products across select states (C$/tonne) ……………………..27 

United States 

9. Scrap tires generation and stockpiles by state (2003) ……………………………………………..31 

10. Top 20 scrap tire recycling companies in US (2003) ………………………………………………33 

11. Scrap tire regulation by state………………………………………………………………………...38 


12. Market comparison of various tire-derived products in the EU…………………………………45 


13. Major players in UK scrap tire industry……………………………………………………………48 

France 

14. Scrap tire generation in 2004 by province………………………………………………………….55 

Japan 

15. Scrap tire generation (1999-2003) …………………………………………………………………...65 

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EXECUTIVE SUMMARY 

The scrap tire industry is driven by regulation. The industry has been created virtually due to 

government regulations enacted to address the environmental concerns about illegally dumped or 

stockpiled tires. Governments are also trying to improve the viability of the industry by providing 

incentives to end-markets that use scrap tire derived products. The United States and Japan were the first 

two countries to address the environmental hazards of scrap tires and put the laws in place. As a result, 

they are currently the leaders in recycling rates and market size. Europe has been a laggard in this aspect, 

but with the deadline for implementing EU directives fast approaching, the European industry is 

expected to register strong growth. 

Timing of regulatory introduction dictates the current state of development. The scrap tire recycling 

industry is at different stages of development in different countries. The development of the market is 

directly linked to the timing and pace of regulation and the size of the domestic automotive market. 

End-markets in the US are more diversified. The US was the biggest recycler in 2003, followed by Japan. 

The US recycled about 3.3 million tonnes of tires in 2003 while Japan recycled 855,000 tonnes. Germany is 

the largest recycler in Europe. While, tire-derived fuel is the major end-market in most countries, civil 

engineering applications are growing faster. The markets for scrap tires are more diversified in the US 

than in other countries. In countries such as Japan and Germany, tire-derived fuel is the predominant 

application. 

Europe is likely to grow faster in the next few years. Industry growth in Europe is expected to outpace 

that of both the US and Japan over the next few years. EU countries, especially the ones with low 

recycling rates, are expected to contribute to the bulk of the growth. Recycling rates in the EU have taken 

off following the issuance of EU landfill and recycling directives. The growth in recycling rate is expected 

to taper off in both the US and Japan as rates approach 100% and automotive demand continues to stay 

flat. Countries such as India and China, whose automotive demand is currently booming, are expected to 

pay attention to this issue soon. 

Profitability of the industry remains the most immediate concern. This is likely to continue until the 

tire-derived products can compete with other materials on purely technical terms and price rather than 

relying on incentives. However, lack of technical standards and specifications for crumb till recently has 

hampered penetration into engineering markets. Future profitability hinges both on the industry’s ability 

to turn out innovative products and continued government support. 

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INDUSTRY OVERVIEW 

Introduction 

The scrap tire recycling industry is distinctive in many aspects. First, the industry owes its existence more 

to environmental and regulatory reasons than economic ones. Second, the time at which regulations were 

introduced and the nature of regulations in a country influence the stage of development and the 

economic model of the industry in different countries. Finally, the growth of the industry is tied to 

government regulation and support more than any other reason. 

The Environmental Impact 

Tires are designed and built to last and as such are not naturally degradable and difficult to treat. This 

poses a huge problem in recycling them. Traditionally, tires have been stockpiled or illegally dumped or 

landfilled. However, none of them is a long-term solution. Illegally dumped or stockpiled tires provide 

convenient breeding grounds for mosquitoes, vermin and snakes. Accidental fires caused in stockpiled 

sites can rage for months releasing toxic fumes. The oily residue left after tire fires is difficult to eliminate 

from the environment. Scrap tires present problems even when they are landfilled. Whole scrap tires 

eventually come up to the top of a landfill and can damage caps and liners of a landfill. As a result of all 

these reasons, many states in the US and many countries that are part of the EU have banned whole tires 

from being accepted at landfills and made recycling compulsory. 

Regulatory Developments 

The adverse environmental impact of scrap tires was first felt in North America, the world’s largest 

automobile market. The seriousness of the issue was felt more acutely after a fire broke out in a tire dump 

in Hagersville, Ontario. The fire lasted 17 days and the residual chemicals seeped into the ground 

contaminating the water table. It is an irony that despite the occurrence of this fire in Ontario, the state 

was the last to put a stewardship program in place for scrap tire recycling. 

The first initiatives were taken in the US. In 1985, Minnesota became the first state to enact laws that 

mandate scrap tire recycling. Other states followed suit and recycling activities picked up steam in the 

1990s. Many Canadian programs got underway in the 1990s while Japan led all the countries in terms of 

recycling rate. In contrast, Europe has been a laggard. Interest in scrap tire recycling increased primarily 

after the European Union issued regulations banning landfilling of whole scrap tires after 2003 and 

shredded tires after 2006. Many countries in the EU do not yet have a program for scrap tire management 

and end-market incentives to boost consumption of tire-derived products or tire-derived fuel. 

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Scrap Tire Recycling 

What is a scrap tire? 

Definitions of scrap tire vary across the world. In this report, the Rubber Manufacturers Association 

(RMA) definition has been used consistently and adjustments to individual country statistics have been 

made wherever necessary to bring them in line with this definition. The RMA defines a scrap tire as a tire 

that can no longer serve its original intended purpose. As a result, tires that can be retreaded or used 

again are excluded from the scrap tire count. However, it is a common practice in Europe and Japan to 

include retreaded and reused tires under scrap tires. Throughout this report a ‘used tire’ shall mean a tire 

that has come out of its normal lifecycle but with modifications can be used for its original intended 

purpose. A ‘scrap tire’ shall mean a tire that can be no longer used for its original intended purpose. 

Scrap tires are either measured in units (millions) or weight (tonnes) or PTEs (passenger tire equivalents). 

A passenger tire typically consists of rubber compound (47%), carbon black (21.5%), steel (16.5%), and 

nylon/fiber (5.5%). Additives and other elements such as sulphur constitute the rest. The energy content 

of a tire is also very high. The net calorific value of a tire is about 32-34 million joules per kg. A 

comparison of calorific values of scrap tires with other fuels is given in Table 1. 

Table 1: Calorific values of TDF and other fuels 

Fuel 

Calorific Value 

Coke (Petroleum) 

13,700 BTU/lb 

Bituminous coal 

12,750 BTU/lb 

Oil (No. 6 fuel oil - 'Bunker C') 151,000 BTU/gallon 

Natural gas 

1,000 BTU/cu. ft. 

Tire-derived fuel 

15,500 BTU/lb 

Source: Scrap Tire Management Council 

Recycling Technologies 

The three recycling technologies in use for recycling scrap tires are ambient mechanical grinding, 

cryogenic grinding and pyrolysis. 

1. Ambient mechanical grinding 

In ambient mechanical grinding process, the breaking up of a scrap tire happens at ambient temperature. 

Tires are passed through a shredder, which breaks the tires into chips. The chips are fed into a granulator 

that breaks them into small pieces while removing steel and fiber in the process. Any remaining steel is 

removed magnetically and fiber through a combination of shaking screens and wind sifters. 

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Finer rubber particles can be obtained through further grinding in secondary granulators and high-speed 

rotary mills. 

2. Cryogenic grinding 

Cryogenic grinding refers to the grinding of scrap tires at temperatures near –80 0 C. Liquid nitrogen is 

used to produce the low temperatures. When the tires are exposed to such low temperatures, they 

become brittle and can be easily crushed and broken. As a result, this process requires less energy than 

others and produces rubber crumb of much finer quality. 

3. Pyrolysis 

Pyrolysis refers to the thermal decomposition of scrap tires either in the absence or lack of oxygen. The 

process aims to recover the original raw materials using which the tire was made. These include carbon 

black, scrap steel, oil and hydrocarbon gases. While the technical viability of the process has been proved, 

very few companies are using it. 

Applications 

The most common applications for scrap tires use either whole or shredded tires or granulated rubber 

derived from tires. This is because the recovery of original raw materials from tires is expensive and 

involves an elaborate chemical process. The main end-markets for scrap tires are tire-derived fuel, civil 

engineering applications, ground rubber applications and cut, punched and stamped rubber products. 

The main areas of application within each category are listed below: 

• Tire-derived fuel 

− Cement industry 

− Paper/pulp industry 

− Utility boilers 

− Industrial boilers 

• Ground rubber applications 

− Rubber modified asphalt 

− Molded and extruded products 

− New tire manufacturing 

− Athletic and recreational applications 

− Horticultural applications 

− Animal bedding 

− Surface modification 

• Cut, punched and stamped rubber products 

• Civil engineering applications 

− Landfill construction and operation 

− Septic system drain fields 

− Backfill for water and bridge abutments 

− Sub-grade insulation for roads 

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Industry Structure 

The industry structure across various countries is fairly similar with minor differences in certain aspects. 

Scrap tires are generated when consumers replace their old, worn out tires with new ones and the old 

ones are decided to be unfit for reuse and retreading. Scrap tires are also generated when consumers 

dispose of their end-of-life vehicles. Sometimes scrap tires are also brought into the recycling chain from 

existing stockpiles. The trends in scrap tire generation lag new tire trends by three years. 

Scrap tires typically gather at the generators (tire retailers, car dealers etc.), from where they are 

transported by haulers to processors who convert the scrap tires into suitable end products. While this 

structure is similar across all countries, the direction of monetary flows among the parties involved and 

the organization that manages the scrap tire program differ. For instance, in Canada, haulers generally 

pick up the tires from the generators for free, whereas in Europe, haulers charge the generators for 

picking up the tires. Also stewardship programs are an important and indispensable component of the 

industry in the US and Canada. However, they are not a common feature elsewhere. 

A cross country comparison of the scrap tire recycling industry across various parameters in given in 

Table 2: 

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Table 2: Scrap tire recycling industry status in various countries 

United States Canada Japan France Germany United Kingdom Italy Spain 

Scrap Tire 

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

Generation 1 

Existing stockpiles 2 271 34 Minimal NA NA NA NA NA 

Recycling rates 80% 86% 52% 78% 59% 70% 25% 

Main end-markets 

Tire-derived fuel, Vary across states, 

Civil engineering mostly molded 

products products 


Tire-derived 

products 


Tire-derived 

products 



Regulation 

At state level; 

almost all states 

have laws 

dealing with 

scrap tire 

management 

At state level; 

almost all states 

have laws dealing 

with scrap tire 

management 

Regulated as part 

of solid waste 

Manufacturers and 

importers 

responsible for 

scrap tire 

management 

No specific 

regulation for 

scrap tires 

Whole and 

shredded tires 

banned from 

landfills, voluntary 

approach by 

industry preferred 

Regulatory 

framework still 

evolving 

Regulation exists at 

provincial level 

Stewardship 

programs 

Yes; At state 

level 

Yes; At state level None None, but Aliapur 

co-ordinates the 

scrap tire 

management 

program 

None 

None, but Tyre 

Recovery 

Association coordinates 

the 

program 

None 

None 

Competition Intense High - - - - - - 

Other comments 

Highly advanced 

market 

- Well established 

industry 

- - - - - 

Source: RMA, ETRA, JATMA, BLIC and Others, Irevna Analysis 

1. In tonnes 

2. In million 

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Industry development across various countries 

As mentioned earlier, the industry is in different stages of development in different countries. This is 

mainly because the regulations came into force at different times in different countries, necessitating the 

formation of the industry. However, a common feature everywhere is that industry profitability remains 

low. 

The US and Japan are the leaders in terms of recycling rates. While tire-derived fuel is the major endmarket 

in Japan, the end-markets in the US are larger and more diversified. However, growth rates are 

expected to come down in the coming years as recycling rates peak and the stockpiles the US are reduced. 

The adoption of scrap tire management program in Ontario, the state that generates a significant number 

of scrap tires and has substantial stockpiles, is expected to accelerate growth. Industry growth will also 

depend on demand from the end-markets. Realizing this, most states in both the US and Canada have 

granted incentives to industries using scrap tire-derived products. 

Europe has been a laggard with respect to this industry. The recent EU landfill directives, however, have 

given a fillip and many states are rushing to create programs to eliminate scrap tires. While Scandinavian 

countries such as Sweden and Finland have achieved considerable success, others are yet to replicate it. 

Most countries have neither stewardship programs nor end-market incentives. Despite this, the market is 

likely to grow owing to the fact that the industry is still in early stages of development; recycling rates are 

still low in most countries (only about 50% if exports are excluded); and the pressure to meet regulatory 

deadlines is increasing. 

Conclusions 

The industry is poised for further growth as more countries enact laws to deal with scrap tire 

management. Growth in countries that have initiated scrap tire management programs recently is likely 

to outpace growth in countries that have introduced such programs long ago. As a result, growth is 

expected to be robust in the EU than US and Japan. However, as far as the countries that are expected to 

grow rapidly are concerned, unless affirmative actions are taken to ensure that the end-markets absorb 

enough of the scrap tire industry output the industry might be saddled with excess capacity. This might 

lead to a churn in the industry. 

While tire-derived fuel is the major end-market in most countries at the moment, growth in civil 

engineering applications is likely to be much stronger over the long term as the latter is more profitable. 

However, in Europe, tire-derived fuel could benefit in the short term. This is because the demand from 

civil engineering market takes more time to get established than tire-derived fuel. As supply takes off the 

civil engineering market might not be able to absorb the excess supply, some of which could be diverted 

for use as fuel. 

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Canada 

Introduction 

The scrap tire recycling industry in Canada is managed through stewardship programs at the provincial 

level. A stewardship program is a program in which all parties in the tire recycling industry (e.g. haulers, 

retailers etc.) take responsibility to recycle scrap tires and eliminate stockpiles. The program is usually 

managed by a provincial level authority. Each province has its own stewardship program and programs 

are fairly similar across states, both in terms of structure and operation. A stewardship program is 

necessitated because scrap tires as such have no economic value and no recycling is possible unless the 

government grants incentives and promotes it. As a result, government support is critical to the success 

of the industry. 

According to the latest figures available from the Canadian Association of Tire Recycling Agencies, about 

20 million scrap tires were generated in Canada in 2002. The number of scrap tires generated is growing 

by 2% annually. While demand from end-markets has been growing, the growth has not been rapid. 

Performance of states with respect to scrap tire elimination has been mixed. Smaller states such as 

Manitoba and Nova Scotia have virtually eliminated their stockpiles while bigger states such as Quebec 

and Ontario still have massive stockpiles. For example, Manitoba has recycled over 1 million PTEs 

(passenger tire equivalents) since the Tire Stewardship Board was set up in 1995 and cleared the entire 

scrap tire stockpiles in the province in 2004. 


Scrap tires are generated when consumers buy new tires for their vehicles or dispose of their old vehicles. 

These are newly generated scrap tires. Old scrap tires also enter the recycling chain when they are 

eliminated from existing stockpiles. Scrap tires from consumers are collected by generators who are either 

tire retailers or vehicle recyclers. Haulers pick up the tires from generators and hand them over to 

processors who convert the tires into crumb rubber, shred rubber, tire-derived fuel and other materials 

13


that are suitable for end-markets. Municipalities can also collect scrap tires, and in certain cases, haul 

them to processors. The industry structure is fairly similar across all the states. 

The figure below illustrates the industry structure: 

Figure 1. Scrap tire recycling industry structure in Canada 

Consumers 

Tire Retailers 

Vehicle Recyclers 

Municipalities 

Haulers 

Processors 

Tire Derived Fuel 

Civil Engg Applications 

Other Rubber Products 

Source: Irevna Analysis 

The figure below shows the monetary flows in the industry: 

Figure 2: Monetary flows in the Canadian scrap tire recycling industry 

Consumers 

(Pay tire levy on purchase of 

new vehicle or tires) 

Tire/Car retailers 

(Remit tire levy and collect 

handling fee) 

Haulers (Collect hauling 

fee and surcharge as 

applicable) 

Stewardship Board 

Municipalities (Collect 

handling fee) 

Processors 


End Markets 

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Generators 

Generators represent the point where scrap tires enter the recycling system. Generators include tire 

retailers, vehicle recyclers, municipalities, landfills and tire marshalling depots. Generators collect a fee 

from customers for every new tire sold and remit it to the authority concerned within a stipulated time 

frame. Depending on the provincial regulation, the generator may or may not receive a handling 

allowance. 

Haulers 

Haulers pick up the scrap tires from generators and hand them over to processors. Haulers are paid a 

fixed amount per tire by stewardship authorities depending upon the type of tire as well as the 

transportation distance. 

Processors 

Processors turn the scrap tire into materials that can be used by the end-markets. The output of 

processors is usually crumb rubber, shredded rubber, scrap steel and fine ground rubber. Processors are 

paid by Stewardship Boards on proof-of-sale of products derived from scrap tires. The financial 

performance of processors depends on their cost structures, government support and demand from endmarkets. 

For example, processors who use cryogenic equipment incur higher costs both for the machinery 

as well liquid nitrogen that is used in the process. Choice of equipment depends on the desired quality of 

crumb rubber, which in turn depends on the end-markets that are served by the processor. The figure 

below gives a break-up of scrap tire usage in different forms in 2002: 

Figure 3. Scrap tire usage in Canada (2002) 

Tire Derived Fuel 

13% 

Die-cut 

11% 

Baled 

2% 

Molded 

Products 

33% 

Shredded 

17% Crumb 

24% 

Source: Canadian Association of Tire Recycling Agencies 

End-markets 

The end-markets for the materials derived from scrap tires include fuel applications, rubber products, 

and civil engineering applications such as rubber-asphalt pavements. Processors also export crumb 

15


rubber and other tire-derived products to the US. Consumption by each end-market varies from province 

to province. For example, 81% of the scrap tires recycled in British Columbia in 2003-04 were converted to 

tire-derived fuel and the rest into tire-derived products. However, New Brunswick scrap tire program 

places more importance on value added products and has never shipped tire-derived fuel. Alberta too 

has stopped funding TDF in 1995 and in 2003-04 its 54% of its scrap tires were used for civil engineering 

applications while the rest were used to produce rubber crumb (29%) and manufactured products (17%). 

Ontario too has no end users of tire-derived fuel though certain end users have approval for its use. 

Scrap Tire Generation and Stockpiles 

According to the Canadian Association of Tire Recycling Agencies, Canada generated around 20 million 

scrap tires in 2002—roughly equal to 28 million PTE. Scrap tire generation is growing at about 2% per 

year. About 70% of the generated scrap tires are processed in Canada while the rest are exported or 

stockpiled. Ontario is the largest generator of scrap tires with 10.3 million PTEs, followed by Quebec (8.1 

million PTEs). While the exact numbers for scrap tire generation for the past few years are not available, 

replacement demand for tires (used tire generation), which serves as a reasonable substitute, from 1999 to 

2003 is given below in Figure 4. 

Figure 4. Used tire generation (‘000 units) 

16,500 

16,000 

15,500 

15,000 

14,500 

14,000 

13,500 

1999 2000 2001 2002 2003 

Source: Canadian Rubber Association 

16


Estimates of scrap tire generation and stockpiles by state are given below: 

Table 3: Canadian scrap tire generation by state 2002 

State 

Scrap Tires Generated (million PTEs) 

Ontario 10.3 

Quebec 8.1 

British Columbia 2.8 

Alberta 2.4 

Saskatchewan 1.1 

Manitoba 0.9 

New Brunswick 0.8 

Nova Scotia 0.7 

Newfoundland & Labrador 0.4 

Prince Edward Island 0.2 

Total 27.7 

Source: Canadian Association of Tire Recycling Agencies 

Table 4: Canadian scrap tire stockpiles by state 

State 

Scrap Tire Stockpiles (million PTEs) 

Ontario 6 

Quebec 25 

British Columbia 1.4 

Alberta 

Minimal 

Saskatchewan 1.0 

Manitoba 

Minimal 

New Brunswick 

Minimal 

Nova Scotia 

Minimal 

Newfoundland & Labrador 

Prince Edward Island 

Minimal 

Total 34 

Source: A Proposal for scrap tire management in Ontario, OTS Plan 

Key Segments and Players 

Scrap tire processors can be segmented into three classes based on the type of their products. The three 

classes are: shred producers, ground rubber and crumb producers and tire-derived-fuel producers. These 

demarcations are not rigid as many scrap processors do produce both shred and crumb rubber while 

some produce rubber products using their own crumb output. Definitions of the categories are given 

below: 

Tire shreds: Tire shreds are rubber chips produced by shredding machines. Shreds are usually 12-18 

inches long and 4-9 inches wide. Certain shredding machines can produce much smaller shreds that are 

only 4-6 inches in length. Usually tires are processed in two stages (primary and secondary shredding) to 

produce smaller shreds. Tire shreds usually contain the non-rubber components of a tire i.e., steel wire 

and nylon. Some processors use debeaders to remove steel beads from tires before shredding. 

17


Applications for tire shreds include embankments, playground surface material, landfill construction and 

operation and other civil engineering applications. 

Ground rubber: Ground rubber particles usually vary in size from 19 mm to 0.15 mm depending on the 

machinery used and the required application. The particles are produced by granulators, hammermills or 

grinding machines. Steel particles are separated using magnetic separators while fibers are separated 

using air separators. 

Crumb rubber: Crumb rubber pieces usually range in size from 4.75 mm to 0.075 mm. Processes that 

incorporate crumb rubber as an asphalt modifier use particles ranging in size from 0.6 mm to 0.15 mm. 

Four processes are used to produce crumb rubber. They are crackermill process, granulator process, 

micro-mill process and cryogenic process. Applications for crumb rubber include rubber-modified 

asphalt, moulded products, athletic surfaces, automotive tires and construction applications. The margins 

on crumb rubber are much higher than on shred rubber. 

Tire-derived fuel: Tire shreds used as fuel in cement, utilities and other industries. The greatest demand 

is from the cement industry. Presence of steel in tire shreds benefits the cement industry as it reduces the 

amount of iron ore required for the cement making process. 

Major Industry Players 

Western Rubber Products 

Western Rubber Products is the only crumb processor in British Columbia, and is also vertically 

integrated, with a hauling business unit and recycled rubber product manufacturing. It produces shred 

and 30-mesh crumb using ambient grinding technology. The chief end-markets are rubber-asphalt and 

animal mat segments. 

Annual crumb and shred capacity: 3.6 million PTE 

Recovery Technologies (Canada) Inc. 

Recovery Technologies (Canada) Inc., produces granular crumb rubber from scrap tires, recycled rubber 

products, as well as tire recycling equipment and machinery. The company is the leader in the Ontario 

market and also has plants in Saskatchewan, Nova Scotia and Pittsburgh, US. 

Annual production capacity: 2.9 million PTE 

Alberta Environmental Rubber Products 

Alberta Environmental Rubber Products (AERP) is a collector, transporter and scrap tire processor. It 

produces shred and high-grade crumb, supplying manufacturers of mats, rubberized surfacing material, 

playground material and a variety of other products from recycled crumb. 

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Crumb production: 1.4 million PTE 

Shred production: 0.9 million PTE 

Champagne Edition Inc. 

Champagne Edition Inc. produces its own crumb rubber and also manufactures industrial, dairy and 

anti-fatigue mats, as well as rubber bricks, tiles, sidewalk blocks. It currently produces about 80% of its 

needs and sources crumb from other regional crumb producers for the remainder. 

Crumb production: 1.4 million PTE. 

Shred production: 0.9 million PTE. 

NRI Industries Inc. 

NRI Industries Inc. is both a processor of scrap tires into crumb rubber and a manufacturer of engineered 

rubber-based products using tire recycling and new material production technologies. The company is a 

Tier 1 supplier to Ford, GM, Chrysler and Nissan. It produces over 500 different injection and 

compression-molded, flat and 3-D die cutting, assembly and rubber-to-metal bonded products. Its 

industrial products include: rubber rolls and sheets, truck and auto mud-flaps, dock and trailer bumpers, 

chocks, roof walkway mats, vibration isolators, anti-skid mats, animal mats, flooring and preforms. 


Trensept Automation Inc. 

The company produces rubber crumb from scrap tires and uses it to produce compression-molded 

consumer products as well as non-rubber-related products. It recently completed the installation of a 

cryogenic rubber crumb plant capable of producing crumb in the 6-60 mesh range at the rate of 100 tons 

per week. Target customers are rubber compression molders seeking an economical solution to the high 

cost of virgin rubber. The company is also developing an automated molding line to bring to market an 

interlocking brick product made of crumb rubber. 

Annual production capacity: 1.5 million PTE. 

Chatham Rubber Manufacturing Corp. 

Chatham Rubber manufactures all-black crumb rubber from radial truck tires primarily for rubber mat 

production—10, 20, 30, and 40 mesh. It has long-term contracts with Wellington Polymer Technology, 

which produces Enviroshake roofing shingles. 

Annual production capacity: 1.2 million PTE. 

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Envirotherm Manufacturing 

Envirotherm’s primary market is the US tire-derived fuel market. This company started in the hauling 

segment and has since integrated vertically into the scrap tires shredding and processing segment as well. 

The company is currently considering entering the recycled rubber crumb production market, and is 

contemplating the necessary $2.5 million equipment investment to do so. It is particularly interested in 

exploring the markets for higher mesh crumb. 

Annual shred production: 1.0 million PTE. 

Tire Recycling Atlantic Canada Corp. 

TRACC is a vertically integrated hauler and processor, and end-use product producer, and is the major 

Atlantic Canadian crumb processor and recycled products company active in the market. It is engaged in 

the collection, transportation, shredding, crumbing and the re-manufacturing of new product from scrap 

tires. 

Its end-products include rubber crumb (3/8” and 20 mesh), animal mats for livestock trailers and barns, 

sheet stock used in the manufacture of original equipment manufacturers, automotive aftermarket rubber 

parts, manhole collars and risers for municipalities, and athletic/sports surfacing. 

Annual shred and crumb capacity: 0.85-1.0 million PTE. 

Tyretek Industries 

Tyretek is the leading rubber crumb processing or producing company in Eastern Ontario (it also 

produces shred). It produces crumb from scrap tires for various value-added end-use applications, with 

50-60% of its output sold to micro-grinders, mostly in the US, and a further 25% of its output going into 

sports field applications. 


Animat Inc. 

Animat Inc. is one of Quebec’s largest processors of rubber shred and crumb, as well as a recycled rubber 

product manufacturer. Animat’s main offerings are horse-related products (stalls, walkways, riding 

areas, training areas and wash areas), dairy products (interlocking rubber flooring systems for livestock 

facilities), and industrial and commercial products (rubberized surfacing material, playground material 

and a variety of other products), all made from recycled truck tire crumb. 

20


Scopcat 

Scopcat is one of the largest Quebec rubber processors, and is active in both shredding and grinding. It 

specializes in ambient shredding and grinding of scrap truck tires ground into crumb (10 and 20 mesh), 

and supplied to product manufacturers. 

Atlantic Recycled Rubber Inc. 

Atlantic Recycled Rubber Inc. produces crumb through a patented cryogenic grinding process to freeze 

tire, remove fibers and metal wire, and produce crumb. Crumb rubber grades include black, black and 

white, gray, buffings, tire rings, and crumb in –4 to +30 grades. 

A comparison all major companies across key metrics is given in Table 5. 

Table 5: Major scrap tire recycling companies in Canada 

Company Province Capacity Products Technology Used 

Western Rubber Products British Columbia 3.6 million PTE Crumb and rubber 

products 

Recovery Technologies 

(Canada) Inc 

Alberta Environmental 

Rubber Products 

Ambient 

Ontario 2.9 million PTE Crumb and rubber Ambient 

products 

Alberta 2.3 million PTE Shred and crumb Ambient 

Champagne Edition Inc. Alberta 2.3 million PTE Crumb and rubber Ambient 

products 

NRI Industries Inc. Ontario 1.6 million PTE Crumb and 

Ambient 

engineered rubber 

products 

Trensept Automation Inc Ontario 1.5 million PTE Crumb, molded Cryogenic 

rubber products 

Chatham Rubber 

Ontario 1.2 million PTE Crumb and shred Ambient 

Manufacturing Corp. 

Envirotherm 

Manufacturing 

Ontario 1.0 million PTE Shred for TDF Ambient 

Tire Recycling Atlantic 

Canada Corp 

Atlantic Recycled Rubber 

Inc 

New Brunswick 0.85-1.0 million PTE Crumb and rubber Ambient 

products 

Nova Scotia 0.9 million PTE Crumb Cryogenic 

Tyretek Industries Ontario 0.5 million PTE Crumb Ambient 

Animat Inc Quebec NA Shred, crumb and Ambient 

rubber products 

Scopcat Quebec NA Shred and crumb Ambient 

Source: Irevna Research 

Tire Disposal Technologies 

The three technologies that are widely used for processing scrap tires are mechanical grinding at ambient 

conditions, cryogenics, and microwave/pyrolysis. 

21


Ambient mechanical grinding 

Mechanical grinding is widely used in British Columbia, Alberta, Manitoba, Ontario, and Quebec. This 

method consists of mechanically breaking down the rubber shred into small particles using various 

machines such as granulators. The steel in the tires is magnetically separated from the crumb during the 

various stages of granulation and the fiber in the tire is separated by sieve shakers. The entire operation 

occurs at ambient temperature. 

The advantage of mechanical grinding is that it is inexpensive and machinery is easy to procure. The 

downside is that rubber pieces are rather coarse and fine rubber particles are difficult to produce using 

this process. 

Cryogenic grinding 

In this process, rubber is crushed at extremely low temperatures, attained by using liquid nitrogen. Steel 

is removed magnetically from the rubber pieces. The particles turned out by the process are finer and 

smooth in texture. While the process is considerably expensive, the production process is faster and 

cleaner. 

A comparison of ambient and cryogenic technologies is given below. 

Table 6: Comparison of Ambient and Cryogenic technologies 

Parameter Ambient Cryogenic 

Operating temperature Ambient, maximum of 120 0 C Below –80 0 C 

Size reduction principle Cutting, shearing, tearing Breaking cryogenically 

embrittled rubber pieces 

Particle morphology 

Particle size distribution 

Spongy and rough, high specific 

surface 

Relatively narrow particle size 

distribution, only limited size 

reduction per grinding step 

Even and smooth, low specific 

surface 

Wide range particle distribution 

(ranging from 10 mm to 0.2 mm) 

in just one processing step 

Maintenance cost Higher Lower 

Electricity consumption Higher Lower 

Liquid nitrogen consumption - 0.5-1.0 kg liquid nitrogen per kg 

of tire 

Source: www.entire-engineering.de 

Microwave/Pyrolysis 

This is a relatively new process that generates the original materials using which the tire was made. The 

materials generated by the process are carbon black, fuel oil, sulphur ash, steel, and fiber. The process 

employs whole tires, unlike the above two where the tire has to be broken down at least partially. The 

process consists of decomposition of the tires by extreme heat in the absence of oxygen. Considerable 

22


research is underway to improve the economics of this process, which is expensive and produces 

materials of non-marketable quality. 

SYMAR 

NRI Industries utilizes its own proprietary process, SYMAR. The process separates the tires into their 

component parts, granulates the rubber, and then the granulated rubber is converted into a new, highervalue 

material—SYMAR-D or SYMAR-T using proprietary technology. SYMAR-D and SYMAR-T are 

depolymerized rubber compounds, which can be used in a manner similar to virgin rubber. 

Market Drivers 

The main market drivers for the scrap tire recycling market are government support and demand from 

end-markets. 

1. Government support 

Scrap tire recycling being an economically unattractive sector, government support at both central and 

state levels is essential for the growth of the sector. Currently, the industry is dependent on stewardship 

programs for sustenance. If the government succeeds in encouraging end-market consumption, it would 

improve the economic viability and lead to further development of the sector. 

2. Demand from end-markets 

The main end-markets and their developments are discussed below: 

Molded Goods 

A full range of consumer products is now being manufactured from recycled rubber from tires. The main 

applications are where the rubber crumb is mixed with a binding agent and molded into products. These 

include rubber mats, paving stones and blocks, curb stops, railroad crossings, automotive parts, solid 

wheels, fatigue mats, animal mats, gymnasium flooring, truck box liners, and up to 15% of the content of 

new highway tires. 

Fine rubber crumb is used as a feedstock in a range of manufacturing processes, while ultra-fine rubber 

crumb can now be made into sealant, soaker hoses, carpet underlay, and partially re-vulcanized rubber 

reclaim. In addition, loose rubber crumb is now being made into animal mattresses for diary cattle. Pourin-place 

surfaces for playgrounds and running tracks have been made using fine rubber crumb as a 

binding agent. 

23


Civil Engineering 

Civil engineering uses for scrap tires include applications such as breakwaters, erosion barriers, and 

engineered landfill. Large tire shreds have been successfully used as lightweight fill material in roadbed 

and embankment stabilization projects. 

Medium-sized rubber crumb (5-10 mm) has become popular as a material for playgrounds to provide 

protection to children from falls and injuries. This same material size range is being used in equestrian 

training areas (usually mixed with sand) to provide a secure and safe footing for horses. It is also being 

used in golf courses and sports fields to protect turf and provide better drainage. 

Rubberized Asphalt 

Recycled rubber crumb has been used in asphalt in two different ways. First, as a filler or aggregate 

replacement, and second as a binding agent. Rubberized asphalt has shown enhanced wear and traction 

performance, as well as minimizing the wear-related road-rutting and frost deformation of roads in cold 

climates. 

Energy Recovery (Tire-Derived Fuel) 

Although not being used in this application in Ontario as yet, both whole and shredded tires are used 

extensively in other jurisdictions in Canada, the US and other parts of the world in energy recovery. 

Controlled combustion of tires can be used to recover the energy in the hydrocarbons. 

Tires 

An emerging application area for scrap tire is in production of new tires. This, however, is still in the 

early stages of process and market development. According to the Ontario Tire Stewardship, recycled 

rubber accounts for as much as 15% of the content of some tires as there is no current or pending 

requirement for a minimum recycled rubber content for new tires. 

The main problem for the industry has been the slow adoption of products from scrap tire recycling. 

However, initiatives are underway to improve demand from end-markets. Tire-derived fuel is 

increasingly being promoted as an alternative fuel and crumb rubber is being used extensively for 

rubber-asphalt pavements. Usage of tire-derived fuel is high in Alberta and Quebec. Companies such as 

Ford have made it mandatory for tire makers to include a certain percentage of recycled rubber in their 

tires. 

24


Regulation 

In Canada, each province has its own laws as well as scrap tire management programs to regulate the 

scrap tire industry. Till recently, Ontario was the only state without a scrap tire management program. 

However, the recently proposed ‘Ontario Tire Stewardship’ program, which draws upon the best 

practices as well as experiences of similar programs in other Canadian provinces, is expected to fill that 

void. Most scrap tire management programs are similar in structure and differ only in minor details. 

In general, the regulations affecting the scrap tire industry are in the form of the following. 

1. Scrap tire management programs: These programs are intended to boost recycling rates and reduce 

stockpiles while encouraging usage of scrap tires in end-markets. They attempt to achieve this by 

involving communities as well as all major industry participants. The industry structure in all provinces 

is similar to the one shown in Figure 1. A comparison of important regulatory elements across various 

provinces in Canada is shown below: 

25


Table 7: Comparison of scrap tire management programs across various Canadian provinces 

British 

Columbia 

Alberta Saskatchewan Manitoba Quebec 

New 

Brunswick 

Nova 

Scotia 

Prince 

Edward 

Island 

Who pays fee Consumer Consumer Consumer Consumer Consumer Consumer Consumer Consumer 

Fee collection 

Finance Min. 

collects fee through 

PST, remits full 

amount to Env. 

Min, which remits 

60% to Tire Board 

Retailers remit 

directly to 

Tire Board 


directly to Tire 

Board 

Finance Min. 

collects fee 

through PST, 

then remits full 

amount to Tire 

Board 

Finance Min. 

collects fee 

through PST, then 

remits full amount 

to Recyc Quebec 


directly to Tire 

Board 

Retailers 

remit 

directly to 

Tire Board 

Retailers 

remit 

directly to 

govt. 

Fees paid to 

Processors on 

proof of sale 

Processors on 

proof of sale 

Processors on 

proof of sale 

Processors on 

proof of sale 

Processors on 

proof of sale 

Processors on 

proof of sale 

Processors 

on proof of 

sale 

Government 

Transporters 

Processors 

responsible 

for tire 

collection 

Transporter 

Municipalities 

($ .50 each tire 

to stockpile) 

Transporters 

Processors 

responsible for 

tire collection 

Processors 

responsible 

for tire 

collection 

Transporter 

Fee per tire 

$ 3.00 on all new 

tires 

$ 4.00 on all 

new tires 

$ 3.50 sm. 

$ 35.00 la. 

$ 3.00 on all 

new tires 

$ 3.00 on all tires 

under 24.5” dia. 

$ 3.00 small 

$ 9.00 large 

$3.00 small 

$ 9.00 large 

$ 2.00 on all 

new tires 

Annual tire sales 3.5 M 2.75 M 0.9 M 0.8 M 5.7 M 1.0 M 0.7 M 0.1 M 

Total Collected $ 10.5 M $ 11 M $ 3.1 M $ 2.2 M $ 17 M $ 2.6 M $ 2.9 M $ 0.2 M 

Pgm. Cost 

Processing 

$ 4.5 M 

$ 9.5 M 

$ 1.2 M 

$ 2 .0 M 

$ 6.5 M 

$ 2.5 M 

$ 1.1 M 

$ 0.11 M 

Transportation 

$ 1.8 M 

$ 1.5 M 

$ 6.2 M 

$ 1.6 M 

$ 0.09 M 

Administration 

$ 0.3 M 

$ 0.5 M 

$ 0.4 M 

$ 0.3 M 

$ 0.9 M 

$ 0.5M 

$ 0.2 M 

Abatement 

$ 3.4 M 

Grants 

$ 0.5 M 

$ 0.1 M 

Landfill 

Regulations 

None None None None Banned from 

landfill 

None 

Banned 

from 

landfill 

None 


26


The salient features of the Ontario Tire Stewardship (OTS) program, which was recently approved, are 

listed below: 

• The OTS Board will manage and co-ordinate the program. 

• A tire levy of C$4-6 per tire will be collected by the retailer whenever a new car or tire is sold. 

• The retailer shall remit the fee to the OTS Board while retaining a handling fee of C$0.35 per tire. 

Handling fee will also be paid to municipalities. 

• Haulers shall pick up the tires from retailers at no cost (except in special cases) and will be paid 

C$0.90 per tire by the OTS Board. 

• Processors will be paid on proof of sale of products derived from scrap tires by the OTS Board. 

Payment will depend on the type of product. 

• OTS will also support R&D of processors and provide incentives to end-users of products derived 

from scrap tires. 

As part of scrap tire management programs, processors are also paid for the products they turn out upon 

proof-of-sale. These processing incentives are provided to increase the financial viability of scrap tire 

processors. Processing incentives given by select states for various products are listed in Table 8. 

Table 8: Incentives for various scrap tire products across select states (C$/tonne) 

Alberta British Columbia Ontario 

Product Type Incentive Product Type Incentive Product Type Incentive 

4” minus shred C$100 TDP1 C$183 TDP1 C$120 

2” minus shred C$145 TDP2 C$122 TDP2 C$100 

#3 mesh crumb C$110 TDP3 C$60 Fabricated 

C$60 

products 

Manufactured C$100 Processed TDF1 C$110 Tire Shred 

C$50 

products 1 (4” minus) 

Fabricated products C$275 Whole tire TDF2 C$85 TDF C$40 

1 Incentive per tonne of crumb in the product 

Source: OTS Plan, Alberta and British Columbia reports 

2. Environmental regulations: A key factor that can hamper scrap tire recycling industry is the 

environmental regulation in certain end-markets. The most contentious of the end-markets is the burning 

of tires as fuel. Eager to increase scrap tire recycling and reduce stockpiles, Canadian authorities are 

allowing increased adoption of tire-derived fuels. For example, the OTS program provides a processing 

incentive of C$40/tonne for tire-derived fuel. However, environmental groups are opposed to burning of 

tire as fuels claiming that it emits noxious chemicals. Industry groups claim that burning of tires as fuel is 

no more harmful than burning of coal, if not cleaner. 

27


Most Canadian provinces allow use of scrap tires as fuel and have not put any specific limits on usage or 

emissions resulting from use of scrap tires as fuel. This is because an appropriate data collection 

mechanism has not yet been identified for measuring emissions from this type of source. However, given 

the strong pressure from environmental groups, a regulation could soon be in the offing. 

3. Other regulations: The other regulations mainly are related to financial incentives and other rules 

created specifically to encourage consumption of scrap tire products by the end-markets. Provincial 

Governments are encouraging scrap tire disposal and recycling through incentives for end-users of scrap 

tires. For example, the Quebec government signed an agreement in 2001 with two cement companies— 

Lafarge and St. Lawrence Cement—to pay C$40-50 per tonne of scrap tires the companies use as fuel in 

their kilns. 

Assessment of regulatory impact 

Current regulations are in favor of scrap tire processors as authorities continue to place high importance 

on reducing scrap tire stockpiles and increasing recycling rates. Regulators are also trying to boost 

consumption of scrap tire products. A factor that could impact the sector negatively is the pressure being 

exerted by environmental groups to ban burning of tires for fuel. 

However, a major problem with the regulation is that it is too fragmented across provinces. Since each 

province has its own stewardship program funded by the citizens, provincial authorities are reluctant to 

pay processors from other provinces. For example, both Ontario Stewardship program and FIRST 

program of British Columbia pay processing incentives only to processors based in their states. This 

promotes localization of processors on a provincial basis. In such situation, regulation actually hampers 

industry growth by preventing players from achieving economies of scale. 

Conclusions 

Canada’s scrap tire regulation programs are some of the most industry supportive in the world. While 

the regulations are governed by provinces, they are fairly similar and provide support through processor 

incentives and end-user incentives. 

With the likely implementation of scrap tire program in Ontario in the near future, scrap tire generation is 

likely to go up, as about 6 million scrap tires, currently lying in stockpiles, will need to be eliminated. 

28


United States 

Introduction 

The United States’ scrap tire recycling industry is the largest in the world. End-markets for tire-derived 

products and tire-derived fuel too are more developed in the US than any other country. In 2003, over 290 

million scrap tires were generated in the US of which 233 million were recycled. The recycling rate has 

gone up over the last 14 years and exceeded 80% in 2003. As in Canada, the industry is guided by state 

stewardship programs. Most states have a stewardship program in place as well as highly developed 

end-markets that are capable of absorbing the scrap tires generated. About half of the states have reduced 

stockpiles to one million tires or less and states such as Minnesota and West Virginia have completely 

eliminated their stockpiles. Profitability of processors remains low and since margins are higher in 

product manufacturing, many processors are adding product manufacturing capabilities. Tire-derived 

fuel is the most important application of scrap tires followed by civil engineering applications and both 

continue to show impressive growth rates. Scrap tire generation and recycling are expected to grow 

further as three states with huge stockpiles—Michigan, New York and Alabama—have passed legislation 

that aims at reducing stockpiles. Responsive end-markets and government support are also expected to 

act as growth catalysts. 


The industry structure in the US is fairly similar to the one that exists in Canada. Generators (retailers, 

municipalities, consumers, junkyards etc) collect scrap tires from consumers and hand it over to 

collectors. The processors collect the tires from collectors, shred it and pass the product to manufacturers 

or end-markets for final consumption. The industry structure is shown in Figure 5. 

29


Figure 5. Scrap tire recycling industry structure in the US 

Consumers 

Generators 

Collectors 

Processors 

Playground surfacing 


Tire derived fuel 

Civil engineering 


Scrap tire recycling has come a long way in the US since 1990. While the number of scrap tires generated 

increased from 223 million in 1990 to 290 million in 2003 (a CAGR of 2%), the number of scrap tires 

recycled increased from 24.5 million in 1990 to 233.3 million in 2003 (a CAGR of 19%). During the same 

period, recycling rate increased from 11% to 80%. The growth in scrap tire generation, recycling and the 

recycling rate is shown in Figure 6. 

Figure 6. Scrap tire industry growth (1990-2003) 

million 

300 

250 

200 

150 

100 

50 

100% 

80% 

60% 

40% 

20% 

0 

0% 

1990 1992 1994 1996 1998 2001 2003 

Scrap Tires Recycled Scrap Tires Generated Recycling Rate 

Source: Rubber Manufacturers Association 

30


California generates the maximum number of scrap tires (33 million in 2003) followed by Texas (24 

million) and New York (20 million). Interestingly, despite being the largest generator, California‘s 

stockpiles are only 2 million compared with Texas’ 49 million and New York’s 40 million. The scrap tire 

generation and stockpiles of each state are given in Table 9. 

Table 9: Scrap tires generation and stockpiles by state (2003) 

State 

Annual 

Generation 

Stockpiles in 

millions State 

Annual 

Generation 

Stockpiles in 

millions 

California 33 2 Colorado 4 35 

Texas 24 49 Arizona 4 NA 

New York 20 40 Oklahoma 3.4 0.66 

Florida 19 0.1 Connecticut 3.4 20 

Illinois 12 0.04 Mississippi 3 0.03 

Pennsylvania 12 12 Iowa 3 1 

Ohio 10 20 Nebraska 3 2 

Michigan 10 25 Kansas 2.6 0.16 

North Carolina 9.6 0.1 Arkansas 2.6 0.3 

New Jersey 8.4 8 West Virginia 2 0 

Georgia 8 0.28 Utah 2 0.06 

Virginia 7.33 3.2 New Mexico 1.8 0.7 

South Carolina 6.5 0 Maine 1.27 1 

Massachusetts 6.35 10 New Hampshire 1.24 NA 

Louisiana 6 0.05 Idaho 1.2 NA 

Maryland 6 1.7 Hawaii 1 1.33 

Indiana 6 5.5 Nevada 1 NA 

Oregon 5.6 0.03 Rhode Island 1 NA 

Washington 5.5 6.29 Montana 0.8 1 

Wisconsin 5.2 NA South Dakota 0.75 0 

Tennessee 5 0.3 Delaware 0.7 NA 

Kentucky 5 0.5 Wyoming 0.7 NA 

Missouri 5 4 North Dakota 0.65 NA 

Alabama 4.4 20 Alaska 0.6 NA 

Minnesota 4 0 Vermont 0.6 NA 

Total US scrap tire generation: 290 million. Total scrap tire stockpiled: 271.3 million 


Scrap tire generation is expected to grow further. Three states with a large number of stockpiled tires— 

New York, Alabama and Michigan—enacted legislation in 2003 to reduce their stockpiles. These 

programs commence in 2004 and are likely to add significantly to the number of scrap tires generated. 

Key Segments and Players 

The scrap tire recycling industry in the US is highly fragmented. The industry can be classified on the 

basis of products generated by the processors. Viewed thus, the main segments of the industry are: 1. 

Ground and crumb rubber manufacturers 2. TDF producers and 3. Manufacturers for civil engineering 

applications. Many large players manufacture all the above. 

31


Most players in the industry cater to the TDF market, as TDF is the largest application for scrap tires. 

However, most big players have well diversified revenue streams and avoid reliance on a single market. 

Major Industry Players 

Recovery Technologies Group is the largest scrap tire recycling company in the US followed by Lakin 

General Corp. and GreenMan Technologies. There is huge gap between the top three and the rest in 

terms of PTEs processed. The top 20 companies in the market on basis of PTEs processed in 2003 are 

listed in the table below: 

32


Table 10: Top 20 scrap tire recycling companies in US (2003) 

Company 

Address 

Company CEO or 

President 

PTEs Processed In 

2003* (million) 

No. of 

Facilities 

Key Products & End Markets 

Recovery Technologies Group(RTG) Inc. 7000 Boulevard East, Guttenberg, NJ 07093 Martin J. Sergi 37.3 14 Ambient and cryogenic crumb 

rubber; TDF; civil engineering 

Lakin General Corp. 2044 N. Dominick St., Chicago, IL 60614 Richard Gust 1 30 4 Reusable tires; die-cut products; 

TDF; crumb 

GreenMan Technologies Inc. 7 Kimball Lane, Lynnfield, MA 01940 Bob Davis 28.6 6 TDF; crumb rubber 

Emanuel Tire Co. 1300 Moreland Ave., Baltimore, MD 21216 Norman J. 

Emanuel 

12.5 5 TDF; horse arena and playground 

cover material 

Tire Disposal & Recycling Inc. P.O. Box 83478, Portland, OR 97203 Mark W. Hope 6.4 3 TDF; civil engineering; crumb 

rubber 

Florida Tire Recycling Inc. 9675 Range Line, Port St. Lucie, FL 34987 Jack Wilson 6.1 1 TDF; drainfield aggregate; 

playground surface; crumb 

TIRES Inc. 617 Washington, Winston-Salem, NC 27107 David Forrester 6.0 3 Crumb rubber for asphalt 

pavement and for sports surfaces 

Integrated Tire 333 Ganson St., Buffalo, NY 14203 Charles Piggot 4.5 3 TDF; resalable tires; engineering 

applications 

Meridian Inc. 1414 Norwich Rd., Plainfield, CT 06374 Guy Mozzicato 4.5 1 TDF; used tires; casings 

Midway Tire Disposal/Recycling 8925 E. Centro Blvd., Fountain, CO 80817 Vernie Houtchens 4.5 1 Baled for civil engineering 

applications 

Mac’s Tire Recyclers Hwy. 145 North, Saltillo, MS 38866 Hal McPherson 4.2 1 Chips for TDF 

Champlin Tire Recycling P.O. Box 445, Concordia, KS 66901 Gary Champlin 4.0 1 Manufactured products, including 

outdoor furniture 

Waste Recovery West Inc. 372 Florin Rd., Sacramento, CA 95831 Mark Hope 3.9 4 TDF; crumb rubber; reusable 

casings 

Golden By-Products Inc. 13000 Newport Rd., Ballico, CA 95303 Jim Barstow 3.8 1 2-inch TDF; 3/4-inch ground 

cover; civil engineering 

Entech Inc. 69676 M-103, White Pigeon, MI 49099 Neil Frey 3.6 1 TDF; septic and landfill drainage 

material; crumb rubber 

Utah Tire Recyclers 1398 N. Beck St., Salt Lake City, UT 84116 Joe Viland 3.5 1 TDF; crumb rubber; alternative 

daily landfill cover 

First State Tire Recycling 22900 Hwy. 65, E. Bethel, MN 55005 Monte Niemi 3.1 1 Civil engineering applications 

BAS Recycling Inc. 1400 N. H St., San Bernardino, CA 92405 Murray Quance 3.1 1 Crumb rubber; buffings; custom 

grinding 

Environmental Rubber Recycling 6515 N. Dort Hwy., Flint, MI 48505 Roger W. 

3.0 2 TDF 

Silverthorn 

Colt Inc. P.O. Box 1408, Scott, LA 70583 Bill Vincent 2.5 2 TDF; civil engineering 

applications 

Source: Recycling Today 

33


Tire Disposal Technology Trends 

Ambient processing is the most widely used technology for scrap tire recycling. Some of the bigger 

players have cryogenic processing facilities as well. In general, the recent trend has been in favor of 

technology that enables tires to be shredded into smaller, uniform pieces free of steel and fiber 

components. This suits many customers who do not want steel in rubber and it allows the processor to 

sell the steel to another consumer. 

In line with this trend, scrap tire recycling equipment manufacturers have been introducing machinery 

that meets these needs. For example, the Eldan Heavy Rasper machine made by Eldan Recycling of 

Denmark is capable of producing 0.75 inch tire pieces or smaller as well as a 99.9% wire-free product. 

Columbus McKinnon also has introduced CM Liberator, a machine that is designed to produce rubber 

and steel materials and can produce 99% steel-free rubber. 

Industry Drivers 

The main factors that drive the industry are growth of end-markets and government support. 

1. Government support 

The scrap tire recycling industry relies on government support for growth. While government support 

has been instrumental in the growth of the industry, it is not consistent across states. Further, while 35 

states collect tire fees, only 19 have incentives for end-markets and many states divert tire recycling funds 

for other purposes. With tire-derived fuel coming under increased scrutiny from environmentalist and 

conservationist groups, regulatory support for development of other end-markets is vital for the further 

development of the sector. 

2. End-markets: The end-markets for scrap tire products in the US are the most developed in the world. 

The main end-markets for scrap tire products are tire-derived fuel, civil engineering applications, ground 

rubber, and punched and stamped products. The break-up of scrap tire use among these applications in 

2003 as well as the historical development of the end-markets are shown below: 

34


Figure 7. Scrap tires end-markets (2003) 

Figure 8: End markets development (million units) 

Rubber 

Modified 

Asphalt 

4% 

Ground 

Rubber 

(witho ut 

asphalt) 

8% 

Exports 

4% 

P unched & 

Stamped 

P roducts 

3% Others 

2% 

250 

200 

150 

100 

50 

C ivil 

Engineering 

24% 


TDF 

55% 

0 

1994 1996 1998 2001 2003 

TDF 

C ivil Enginee ring 

Ground Rubber (without asphalt) Rubber Modified Asphalt 

Exports 

P unched & Stamped P roducts 

Others 


Tire-derived Fuel 

Tire-derived fuel is the most important end-use for scrap tires in the US and accounted for 56% of total 

recycled tires in 2003. The most important consumers of tire-derived fuel are cement and utilities 

industries. In 2005, the TDF market is expected to consume 151 million scrap tires. The break-up of the 

TDF market in the US in 2003 is shown below along with the market development over the years. 

Figure 9. Break-up of TDF users (2003) 

Figure 10: TDF growth by industry (million units) 

Electricity 

& Utility 

31% 

Tire to 

Energy 

8% 

150 

125 

100 

75 

50 

Pulp/ 

Paper 

20% 

Cement 

Kilns 

41% 

25 

0 

1996 1998 2001 2003 2005* 

Cement Kilns 

Pulp/Paper 

Electricity & Utility Tire to Energy 


Source: Rubber Manufacturers Association, * Extimates 

The TDF market is expected to increase further with the development of ASTM specifications, which 

have facilitated standardization of product, lower emissions compared with traditional fuels such as coal, 

rising energy costs of traditional fuels as well as increased acceptance of TDF. However, environmental 

groups have adopted a hostile attitude towards TDF and natural gas is becoming a major competitor. 

These two factors could hamper growth prospects slightly. 

35


Civil Engineering Applications 

Civil engineering applications for scrap tires continue to grow, with the industry using 56.4 million scrap 

tires in 2003 compared with 40 million in 2002. Main applications in this market include lightweight fill, 

drainage layers for landfills and aggregate for septic tank leach fields. A new application of scrap tires in 

this area is their usage as vibration damping layers under railway lines. 

Civil engineering applications have grown faster than any other application over the last five years and 

are expected to grow further. A major problem for this market is the scrap tire processors’ inability to 

produce tire-derived products that match the specifications and requirements of the civil engineering 

industry in a timely manner. 

Ground Rubber 

According to the RMA, about 586 million pounds of ground rubber (equal to 28.2 million scrap tires) 

were sold in the US in 2003. The major applications for ground rubber include asphalts/sealants, molded 

and extruded products, sports surfacing, new tire manufacturing, surface modification, animal bedding 

and horticultural applications. Bulk of the ground rubber in 2003 was used by molded products (35%), 

sports surfacing (26%) and asphalt/sealants (20%). Usage of rubber asphalt has decreased due to a 

decline in demand from California. 

Markets for molded products, sports surfacing and animal bedding are expected to increase. The ground 

rubber processor market witnessed a shake-up recently with smaller players going out of business as the 

market was saddled with overcapacity leading to pricing pressures. The industry has adopted new 

technologies to lower costs. 

Punched & Stamped Rubber Products 

This segment consumed 6.5 million tires in 2003. The segment consists of various products that are made 

from rubber pieces that are stamped and cut from the tires. Demand from this market has been fairly 

stable for the past several years. This segment mainly uses bias-ply tires or fabric bodied radials and 

almost all tires of these types are diverted by processors to this segment. However, since there is 

insufficient supply of bias-ply tires, this market is expected to contract slightly in the next two years. 

Competitive Practices & Pressures 

As the industry is highly fragmented, competition is intense. Due to pricing pressures resulting from 

overcapacity of crumb rubber, many players have been forced out of the market or were acquired. 

36


M&A and Joint Ventures: Many companies have used the shake-up in the industry to strengthen their 

competitive position through acquisitions. Notable among these is GreenMan Technologies, the third 

largest scrap tire recycler in the US. GreenMan Technologies acquired Unlimited Tire Technologies, R&J 

Recycling Company’s tire collection operations and Utah Tire Recycler Inc.’s Iowa operations in 2002. 

Strategic Supply Tie-ups: Companies tie up with tire manufacturers and dealers to tap newly generated 

scrap tires. They also tie up with cleanup programs so as to make up for the slack during seasonal 

slowdowns in the retail market. 

Regulation 

Most states in the US have enacted regulation that deals with scrap tire recycling. While some states have 

programs that directly address scrap tire recycling, some incorporate them as part of their solid waste 

management programs. Nineteen states offer incentives for end-markets to boost demand for tire-derived 

fuel and tire-derived products and 32 states provide grants or loans to scrap tire processors and recyclers. 

Complete details of the scrap tire recycling programs and end-market incentives of each state are given in 

Table 11. 

37

Table 11: Scrap tire regulation by state 


State 

Fee Collected 

Fee Basis 

Fee Collected by: 

Fee Account 

Prohibit Collection of Other 

Fees? 

Collection / Transportation 

Reg. Or Permit Required? 

Storage/Dispos al Reg. Or 

Permit Required? 

Whole Tires Banned from 

Landfill? 

Cut/Shredded Tires Banned 

from Landfill? 

Monofills Allowed? 

Stockpile Clean Up 

Program Exist? 

Active Clean-Up Program? 

Markets Establish to handle 

Annual generation? 

Subsidies/Grants/ Loans Market Incentives Comments: 

Alabama $1.00 Per tire Tire Dealer Waste Tire Fund created Yes Yes No No Yes Yes No No Scrap tire bill passed 

6/1/2003 

Alaska $2.50 Per tire Tire Dealer All funds diverted to 

general fund 

No No No No No No No No Recycling bill gives preference 

given to recycled products. 

Arizona None na na Waste Tire Fund created Yes Yes Yes Yes Yes Yes Yes No Yes Provides funds to counties to contract 

with private waste tire collectors / 

processors. 

Arkansas 

$2.00/pass. 

$4.00/truck 

Per tire Tire Dealer Waste Tire Management 

Fund created 

Yes Yes Yes Yes No Yes Yes No No A 30% income tax credit available to 

waste management companies 

investing in solid waste, including 

tires, reduction, reuse, recycling 

equipment. 

None 

10% price preference given for 

retread purchases for state 

vehicles. If retreaded in 

Arkansas, additional 1% 

preference added. 

California $1.75 Per Tire Tire Dealer Calif. Tire Recycling 

Management Fund 

created. CIWMB 

administers the fund. 

$0.75 of fund goes to 

pollution programs. 

Yes Yes Yes No Yes Yes Yes Yes Grants and loans available for scrap 

tire operations. 

5% purchase price preference for 

State purchased products made 

with tire derived materials. 

Requires the use of retreads on 

state vehicles. 

Grants available from 

CIWMB to public and 

private ventures. 

Colorado $1.00 Per Tire Tire Dealer Waste Tire recycling 

Development Cash 

Fund created 

No No No No Yes Yes No Yes 20% tax credit for recycling 

equipment purchases. 15% of Fund 

available for recyclers in rural areas. 

30% of Fund available for new scrap 

tire recycling business start-up costs. 

State funding some projects at the 

processor and end-user level 

Connecticut None na na na No Yes No No Yes No No Yes None 10% price preference for products 

made with recycled materials. 

Delaware None na na na No Yes No No Yes No No Yes Tax incentives, low interest loans to 

business and industry using recycled 

materials in manufacturing or to 

process recyclables 

None 

Florida $1.00 Per Tire Tire Dealer Funds redirected to 

other recycling efforts. 

Scrap tires get approx 

20% of fees collected 

Yes Yes Yes No Yes Yes Yes Yes None Grants to counties to buy 

products made from waste tires. 

DOT specifies rubber modified 

asphalt for all surfacing contracts 

Georgia $1.00 Per Tire Tire Dealer All monies in fund 

diverted to general fund 

in 2004 

Yes Yes Yes No Yes Yes Yes Yes Grants to universities or gov. agencies 

for innovative technology 

development, scrap tire pile clean-up 

None 

Hawaii $1.00 Per Tire Importer No No Yes No Yes Yes No No None 10% price preference for products 

made with recycled materials 

Tire dealers required 

to accept used tires in 

exchange for new ones 

purchased. 

38


State 

Fee Collected 

Fee Basis 


Fee Account 


Fees? 






Landfill? 




Idaho None na na Yes Yes Yes Yes Yes No No Yes Program no longer in existence. None 

Illinois $2.50 Per Tire Tire Dealer $.50 of fee collected goes 

toward West Nile virus 

eradication, rest goes to 

scrap tire fund. 

Yes Yes Yes No Yes Yes Yes Yes Grants & low interest loans for scrap 

tire processing facilities and to 

promote beneficial end uses. 

None 


Stockpile Clean Up Program 

Exist? 




$.50 from fee goes to 

state agencies for West 

Nile Virus programs 

Indiana $0.25 Per Tire Tire Dealer Waste Tire Management 

Fund 

Yes Yes Yes Yes No Yes Yes Yes No Grants for TDF stack testing (50% of 

the cost, up to $30,000) 

Grants awarded to gov. agencies 

to purchase products made from 

recycled Indiana scrap tires 

Iowa None Vehicle 

Title 

State 

Waste Tire Management 

Fund created 

Yes Yes Yes No Yes Yes Yes Yes Landfill Alternatives Financial 

Assistance program provided funding 

for source reduction & recycling 

programs. Grants subsidize 

processors to allow sale rates of waste 

tire materials. 

None 

Kansas $0.25 Per Tire Tire Dealer Waste Tire Management 

Fund created 

Yes Yes Yes Yes Yes Yes No Yes None None $0.50/tire fee prior to 

7/1/01. Shreds may 

be landfilled in 

monofills only after 

7/1/99. 

Kentucky $1.00 Per Tire Tire Dealer Waste Tire Fund created Yes Yes Yes No No Yes No No Sales tax exemption & tax credit on 

recycling equipment 

Louisiana $2.00 Per Tire Tire Dealer Waste Tire Management 

Fund created 

Yes Yes Yes Yes No Yes Yes Yes Tax credits equal to 20% of recycling 

equipment costs. 

None 

5% price preference for State 

purchases of supplies with 

specific recycled content. 

Maine $1.00 Per Tire Tire Dealer Yes Yes Yes No Yes Yes Yes None State requires purchase of 

recycled materials if feasible and 

environmentally sound. 

Processors paid once 

processed tires are 

sent to end use. 

Active civil 

engineering and 

stockpile abatement 

programs. 

Maryland $0.40 Per Tire Tire Dealer Scrap Used Tire 

Cleanup and Recycling 

Fund created. State has 

raided scrap tire funds 

Yes Yes Yes No Yes Yes Yes Tire Dealer keeps 1.2% of gross tire 

fee collected. Promotes use of tire 

chips in cement kilns. 

5% price preference for State State currently 

purchases of products containing processes rubber at 

recycled materials. 

state-owned facility. 

Massachusetts None na na Recycling Loan Fund 

created. 

Michigan $1.50 Assessed on 

vehicle title 

transfer 

State 

Scrap Tire Regulatory 

Fund created. 

No Yes Yes No No No Yes Recycling tire 10% price preference for State 

purchases of products containing 


Yes Yes No No Yes No Yes Grants to clean-up scrap tire piles. 10% price preference for State 


recycled materials 

Minnesota None na na Yes Yes Yes Yes No Yes No Yes None None 

Mississippi $1.00 Per Tire Tire Dealer Environmental 

Protection Trust Fund 

created 

Yes Yes Yes Yes No Yes No Yes Environmental Protection Trust Fund None 

allocates 25% of the fund to recycling 

and demonstration grants 

Missouri None Per Tire Tire Dealer Waste tire fee funds 

created 

Yes Yes Yes No Yes Yes Yes Grants for demonstration projects and 

capital expenditures for TDF or 

recycling into a product. 

39 

None 

Landfilling restricted 

in 2002. 

State expects to renew 

fee early in 2004


State 

Fee Collected 

Fee Basis 


Fee Account 


Fees? 



Montana None na na na Yes No No No No Yes 25% tax credit available for purchase 

of recycling and processing 

equipment. 




Landfill? 





Exist? 





State instructed to purchase Bales not permitted. 

recycled products whenever 

possible, but not mandated. 

Nebraska $1.00 Per Tire Tire Dealer Waste Reduction & 

Recycling Incentive 

Fund created 

Yes Yes Yes Yes No Yes No No Grants available for cost-sharing for 

processors, capital and start-up costs 

for processors, manufacturers, 

transporters & collectors of scrap tires. 

None 

$1.25/ton disposal fee 

Nevada $1.00 Per Tire Tire Dealer Solid Waste 

Management Account 

Yes Yes Yes No Yes Yes No No None 10% price preference for State 

purchases of Nevada 

manufactured products 

containing recycled materials. 5% 

price preference given to all other 

recycled products. 

Most scrap tires going 

to landfills. 

New 

Hampshire 

None na na na No No Yes No No No Yes None None Towns collect fees to 

handle automotive 

waste collection & 

disposal. 

New Jersey $1.50 Per Tire Tire Dealer Account created. 80% of 

fee collected goes to the 

general fund 

No Yes Yes No Yes No Yes Low interest loans for recycling for 

purchasing recycling equipment. 

Legislation and Executive Order 

require the procurement of 

recycled products 

State passed program 

in 2004. Funds going 

to pile abatement/ 

gen. fund. 

New Mexico $1.50 Vehicle 

Registration 

State 

Tire Recycling Fund 

created. 

Yes Yes Yes Yes Yes 5% price preference for State $.50 of the $1.50 now 

purchases of products containing collected goes to the 


state's general fund. 

New York $2.50 Per Tire Tire Dealer Dedicated Scrap Tire 

Account. Account is 

subject to general 

revenue fund subject to 

approval by legislature 

Yes Yes Yes Yes No Yes No No Recycled material, demonstration 

projects and rubber asphalt 

administered by DED, DEC, DOT. 

Scrap tire bill passed 

June 2003 gives NY 

first ever 

comprehensive scrap 

tire program 

North 

Carolina 

2% of cost of 

tire 

Per Tire Tire Dealer Yes Yes Yes No Yes Yes No Funds for reimbursement to improve 

the use of recycled materials 

None 

North Dakota $2 New 

Vehicles 

Sales Fee 

Ohio $0.50 Per Tire Tire 

Wholesaler 

Oklahoma 

$1.00/pass. 

$3.50/truck 

State Yes Yes No No No No Yes None None 

Per Tire Tire Dealer Waste Tire Indemnity 

fund created. 

Yes Yes Yes Yes Yes Yes Yes No Loans and grants available to scrap 

tire businesses. 

None 

No Yes Yes No Yes Yes Yes $0.50/tire reimbursement fee to None 

processors demonstrating 10% of tires 

coming from designated illegal tire 

dumps. Additional $0.35/tire 

available if tire collection provided in 

every county. 

Riverbank 

stabilization projects 

are eligible for 

$1.50/truck tire when 

sources from priority 

dump sites. 

40


State 

Fee Collected 

Fee Basis 

Pennsylvania $1.00 Per Tire Tire Dealer All funds diverted for 

mass transit systems 


Fee Account 


Fees? 






Landfill? 





Exist? 




No Yes Yes No Yes Yes Yes $1 million Env. Technology Fund 

offers low interest loans for recycling 

research & development projects and 

recycling equipment funding. 





Rhode Island $1.25 Per Tire Tire Dealer Hard-to-Dispose 

material Account 

created 

No Yes No No Yes None None 

South 

Carolina 

$2.00 Per Tire Tire Dealer Waste Tire fund created No Yes Yes No Yes Yes Yes Tire dealers may keep 3% of $2/tire 

collected for administration costs and 

$1/tire sent to a permitted waste tire 

recycling/facility 

None 

South Dakota $1.00 Registration State No Yes Yes No Yes No Yes None 

Fee 

Tennessee $1.00 Per Tire Tire Dealer No Yes Yes No Yes No Yes Grant reimbursement for beneficial 

end uses of waste tires. 

None 

Each county has waste 

tire collection site. 

DEC has contracted 

with private 

shredding service to 

process tires at county 

collection sites. All 

tires banned from 

landfill in 2002 

Texas None na na Yes Yes Yes No Yes None None State recently 

depleted fund of 

almost $5 m to 

cleanup two largest 

piles 

Utah $0.50 Per Tire Tire Dealer Recycling Fund created. Yes Yes Yes No Yes Yes Yes Local Health Departments provide None 

recyclers up to $70/ton for TDF or 

recycling into manufactured products. 

Vermont None na na na Yes Yes Yes Yes No No No Yes Market development grants provided 

to stimulate in-State demand for 





Virginia $1.00 Per Tire Tire Dealer Waste Tire Trust Fund 

created 

Yes Yes Yes No Yes Yes Yes End user reimbursement program. None $.50 increase in 2003 

goes to tire fund 

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

West Virginia $5.00 Vehicle State Yes Yes Yes Yes Yes Yes No None None Active stockpile 

cleanup program. 

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


Assessment of Regulation 

There has been some problem with regulation where sunset programs are involved. In a sunset program, 

the funding for scrap tire recycling program expires after a specific date unless the state decides 

otherwise. When the funding stops, recycling takes a hit and as a result, the industry suffers. 

As players in the industry expand to other states, they grapple with regulations that are inconsistent 

across states. Many players in the industry prefer more stable regulation and uniformity across all the 

states and regions. 

Another problem has been the diversion of funds collected for scrap tire recycling programs for other 

purposes. For example, while New York collects $2.50 of tire levy, it only allots $1 for the recycling 

program and the rest goes to a general fund. Fewer funds mean lesser recycling and lesser industry 

development. 

While there is pressure from environmental groups to ban burning of tires as fuel, there is no legislation 

that actually does so. Such legislation, if enacted, would adversely affect the scrap tire recycling industry, 

which depends heavily on the TDF market. 

Conclusions 

Scrap tire generation should increase in the next 2-3 years as recent legislation in the states of New York, 

Alabama and Michigan mandates the elimination of huge stockpiles in each of those states. Recycling 

rates are also expected to move up, albeit at a slower pace than earlier. 

Tire-derived fuel is expected to remain the major end-market for the next few years. The development of 

ASTM standards for tire-derived fuel is expected to boost demand by enabling suppliers to understand 

customer specifications better. However, civil engineering applications segment is expected to grow the 

fastest as ASTM specifications and standards have been established for products used in these 

applications. As a result, these products are likely to win more acceptance from engineers who have been 

reluctant to use them in the past for lack of standards. 

Considerable churn in the industry has occurred in the recent years following an excess capacity in 

crumb. However, there are still many players with limited capacities and as the gap between the top 

three players and other widens more consolidation is expected in the industry through M&A activity. 

42



Introduction 

The EU is the second largest scrap tire generator after the Unites States. In 2003, EU generated 2.6 million 

tonnes of used tires. The EU landfill and ELV directives have forced the respective national governments 

address scrap tire recycling. However, the EU has left the method of implementing the directives at the 

discretion of the member countries. While Scandinavian countries such as Sweden and Finland have 

made remarkable progress in recycling, the rates in countries such as Spain are still low. However, with 

the deadlines for implementing the directives fast approaching, recycling rates are expected to pick up 

resulting in the establishment of a viable industry. 

Scrap tire generation 

According to BLIC, 2.04 million tonnes of scrap tires in 2003. Germany generated the most number of 

scrap tires followed by the UK, France, Italy and Spain. These countries constitute 80% of the scrap tire 

generation. The scrap tire generation over the last few years and a break-up of the EU scrap tire 

generation by country are shown below. 

Figure 11: Scrap tire generation (‘000 tonnes) Figure 12: EU scrap tire generation by country (2003) 

2,320 

2,300 

Others 

20% 

Germany 

24% 

2,280 

2,260 

2,240 

2,220 

2,200 

2,180 

1996 1998 2000 2002 2003 

Spain 

11% 

Italy 

14% 

France 

14% 

UK 

17% 

Source: ETRA 

Source: ETRA 

43



In Europe, the scrap tire industry functions through two schemes. They are industry responsibility 

scheme and producer responsibility scheme. In the industry responsibility scheme, producers along with 

other industry players assume responsibility for scrap tire recycling and management. In the producer 

responsibility scheme, producers assume responsibility for scrap tire recycling. In both the cases, 

consumers pay for the recycling and tire collection expenses. 

The industry structure is pretty similar to that of Canada and US. The industry structure is shown in 

Figure 13. 

Figure 13. Scrap tire recycling industry structure in the EU 

Consumers 

Generators 

Collectors 

Processors 

Playground surfacing 


Tire derived fuel 

Civil engineering 

44


The main products, consumers and applications in Europe are listed in Table 12. 

Table 12: Market comparison of various tire-derived products in the EU 

Product Capital investment Consumers Applications 

Whole cut


Figure 14. Scrap tire end markets (2003) 

Tire-derived 

products 

44% 

Exports 

9% 

Tire-derived 

fuel 

47% 

Source: BLIC 

Conclusions 

The scrap tire recycling industry in EU is likely to grow faster than US and Japan. Within the EU, 

countries with low recycling rates like France and Spain are likely to witness faster industry growth rates. 

Further, the European scrap tire statistics are believed to be widely under-reported. So the stockpiles and 

scrap tire generation statistics are likely to be much higher. As per EU directives, all these have to be 

recycled. As a result, recycling is likely to witness a boom. 

While, demand from the tire-derived fuel and tire-derived products is more or less even, demand for tirederived 

products market is expected to increase faster over the long-term as tighter emission norms are 

imposed by the EU on industries using tire-derived fuel. In the short-term, tire-derived fuel could benefit, 

as the civil engineering market might not be able to absorb the excess supply. The reason for this is that 

demand from the civil engineering industry takes more time to get established. As a result, some of the 

supply could end up being diverted to tire-derived fuel market. 

End-markets are expected to benefit from the expansion of EU. The expansion will usher in a larger 

market for the industry’s products, faster growing markets and more sources of scrap tires. 

46



Introduction 

The UK is the second largest generator of scrap tires in the EU after Germany. According to the European 

Tyre Recycling Association, UK generated 450,000 tonnes of scrap tires in 2003. Approximately 59% of 

these were recycled. Tire fuel and tire-derived products are the most popular end-markets in the UK. 

Much like the rest of the EU, UK too is in the process of establishing a viable scrap tire recycling industry. 

This has been necessitated by the EU directives for landfills scrap tire management. UK has entrusted tire 

manufacturers and importers with the responsibility of management and proper disposal of scrap tires. A 

separate organization—Tyre Recovery Association—has been formed to establish industry standards and 

oversee the development of the industry. 


The scrap tire recycling industry structure in UK is pretty similar to that found elsewhere in the 

developed countries. Scrap tires are disposed of by consumers near tire retailers and garages, which are 

collected by authorized collectors. Collectors ship the tires to processors who process them as per the 

requirements of the end-markets. Collectors and processors need a permit to operate and most of them 

have registered with the Tire Recovery Association. The schematic industry structure is shown in Figure 

X. 

Scrap Tire Generation 

About 30 million used tires (equivalent to 450,000 tonnes) were generated in the UK in 2003. Used tire 

generation in 2003 was 3.4% higher than in 2002. The number of used tires generated for select periods is 

given in Figure 15. 

47


Figure 15. Used tire generation (‘000 tonnes) 

500 

450 

400 

350 

300 

250 

200 

150 

100 

1996 1998 2000 2002 2003 

Source: ETRA 

Key Players 

The main players in the UK scrap tire recycling industry include Charles Lawrence International Ltd, 

Credential Environmental Limited and Sapphire Energy Recovery Limited. Important details of the main 

players are given below: 

Table 13: Major players in UK scrap tire industry 

Capacity 

Companies 

(tonnes/year) 

Products 

Charles Lawrence Recycling 17,5000 Fine chips, granulate and powder 

Credential Tyre Recycling Ltd. NA Chips and granulate 

Sapphire Energy Recovery Ltd. 100,000 Tire-derived fuel 

UK Tyre Processors NA Chips and granulates 

Duralay Ltd. 13,000 Fine granulates 

World Rubber NA Granulates and crumb for sports surfaces etc. 


Sapphire Energy Recovery is the largest company in terms of processing capacity. The company is a joint 

venture between Lafarge Cement UK and Michelin Tyre PLC. It processes scrap tires for use as fuel in 

cement kilns. 


The chief drivers, as in other markets, are demand from end-markets and regulation. 

End-markets 

The chief end-markets for the scrap tire recycling industry are tire-derived products such as shredded 

and granulated rubber and molded products, and tire-derived fuel. Some scrap tires are exported, about 

48


70% of which go to other EU countries. Exports are dependent on currency fluctuations. The break-up of 

the scrap tire destinations as well as end-markets for the year 2003 is shown below. 

Figure 16: Used tire destinations (2003) 

Figure 17: End-market break-up (2003) 

Reuse & 

Retreading 

23% 

Landfill 

18% 

Exports 

3% 

Tirederived 

fuel 

29% 

Exports 

5% 

Tirederived 

products 

39% 

Tirederived 

fuel 

17% 

Tirederived 

products 

66% 

Source: BLIC 

Source: BLIC 

The market for tire-derived products is much larger than the market for tire-derived fuel. While tirederived 

fuel was the largest end-market in 1998, its share of total market has gone down since then. This 

is mainly because the tire-derived products market has expanded faster than the tire-derived fuel market. 

As in most countries, the chief consumer of tire-derived fuel is the cement industry. Shredded and 

granulated rubber derived from scrap tires is increasingly being used for sports surfaces, carpet underlay 

etc. The growth of various end-markets over the last few years is shown in Figure X. 

Figure 18. Scrap tire end-market development (tonnes) 

300,000 

250,000 

200,000 

150,000 

100,000 

50,000 

0 

1998 2000 2003 

Tire-derived products Tire-derived fuel Exports 

Source: UTWG, BLIC 

49


With improvements in recycling rates, establishment of a formal industry structure and industry and 

government initiatives, demand from end-markets looks set to grow further. Strong demand is expected 

particularly from sports surfacing and civil engineering applications such as leachate drainage blankets. 

Regulation 

The UK has initiated steps towards formal establishment of regulations that will govern the industry. 

However, the government prefers a voluntary approach for scrap tire recycling from all participants to a 

statutory approach, as it believes that the former will be more effective. As per the latest proposals issued 

by the Department of Trade and Industry (DTI), tire manufacturers and importers are to be responsible 

for the management of scrap tires. Accordingly, members of the Tyre Industry Council (TIC), has formed 

the Tyre Recovery Association with the support of tire manufacturers. Many collectors and tire recyclers 

have joined the organization. The organization is in the process of introducing the necessary standards to 

meet the regulations concerning scrap tire recycling as well as increasing the economic viability of the 

industry. 

The Environment Agency has launched the TyreWatch program to reduce illegal disposal and increase 

tire recycling rates. The British Parliament also passed laws banning tires from being accepted in landfills. 

Accordingly, whole scrap tires are banned from landfills from July 2003. Shredded tires are banned from 

hazardous landfills from July 2004 and non-hazardous and inert sites from July 2006. The UK 

government has prescribed severe fines and punishment for violation of any of these rules. No particular 

legislation exists in the UK to boost demand from end-markets of scrap tires. 

Recycling rates are expected to receive a boost following the necessity to comply with the EU directives 

and the establishment of a formal industry structure. 

50


Germany 

Introduction 

Germany, the EU’s most industrialized nation, probably has the best scrap tire recycling record amongst 

its peers. While it generates more scrap tires than any other nation, it recycles most of them (78% in 2003). 

Tire-derived fuel is the most important end-market in Germany. There is no specific regulation that 

applies to scrap tires. There are also no specific organizations that co-ordinate or manage scrap tire 

programs. While increased recycling rates are expected following EU regulations, high growth rates are 

unlikely as the industry is already well developed. 


The industry structure is fairly similar to what exists across Europe. Tire retailers and others collect scrap 

tires from consumers. Collectors transport the tires to processors who process them for end-markets. 


Used tire generation in Germany had been flat over the last few years before declining in 2003. In 2003, 

Germany generated 600,000 tonnes of used tires—6% lower than 2002 levels. Used tire generation over 

the last few years is shown in Figure 19. 


700 

600 

500 

400 

300 

200 

100 

1996 1998 2000 2002 2003 

Source: ETRA 

51


Scrap tire generation is likely to grow further as recycling rates improve but at a lesser pace than other 

European peers. Automotive demand in Germany has been stagnant for the past few years, which means 

that replacement demand is likely to be flat for the next few years. 


The main industry driver is Germany is the demand from the end markets since there is no regulation 

that specifically deals with scrap tires. 

End-markets 

Tire-derived fuel is the main end-market for scrap tires in Germany. While tire-derived fuel accounted for 

68% of the recycling market in 2003, tire-derived products accounted for 24%. The break-up of 

destinations and end-markets for scrap tires in 2003 are shown below. 



Reuse & 

Retreading 

15% 

Landfill 

7% 

Exports 

6% 

Tirederived 

products 

19% 

Exports 

8% 

Tirederived 

products 

24% 

Tirederived 

fuel 

53% 

Tirederived 

fuel 

68% 

Source: BLIC 

Source: BLIC 

Both tire-derived fuel and tire-derived product demand has risen steadily over the last few years, while 

exports have declined. The growth of the end-markets over the years is shown in Figure 22. 


500,000 

400,000 

300,000 

200,000 

100,000 

0 

1998 2000 2003 



52


Demand for tire-derived products is expected to outpace demand for tire-derived fuel, since the tirederived 

products market is still in a nascent stage. While demand for tire-derived fuel should benefit 

from higher energy prices, a still sluggish German economy and industrial production should partially 

offset it. 

Regulation 

There is no specific legislation in Germany for scrap tire recycling. The generally applicable law is the Act 

for promoting closed substance cycle waste management. A few waste categories are governed by 

ordinances while others are governed through voluntary organizations. Germany prefers a voluntary 

industry approach to scrap tire recycling to a regulatory approach. 

53


France 

Introduction 

The scrap tire recycling industry in France is still in a nascent stage. France, being a highly industrialized 

country with a large automotive market, generates a large number of scrap tires. However, in comparison 

with the number of scrap tires generated, the number of scrap tires recycled is low. France generated 

about 390,000 tonnes of scrap tires in 2003 of which 52% were recycled. In 2004, France collected and 

upgraded 265,530 tonnes of scrap tires or about 30.4 million tires. The majority of scrap tires generated in 

France are used in landfills, while the rest are recycled. However, the recycling rate is poised to grow as 

France tightens its laws to comply with EU regulations on landfills and recycling. In line with the EU 

directives, France has recently enacted laws to increase scrap tire recycling and achieve the EU goals 

within the stipulated time frame. 


The industry structure for scrap tire recycling in France is still in a formative stage and undergoing a 

change. Previously, a large number of collectors collected the scrap tires from generators such as 

consumers and tire retailers and transferred them to the processors who either sent them to landfills or 

recycled them. The responsibility of scrap tire recycling in France now lies with Aliapur, a company 

representing the seven major tire manufacturers as well as importers. Collectors approved by Aliapur 

collect scrap tires from consumers and are paid by Aliapur. The tires are then sorted on 22 different 

platforms and recycled accordingly for appropriate end-markets. 


France is the third largest generator of scrap tires in the EU (after Germany and the UK). In 2004, France 

generated 372,330 tonnes of used tires. The number of used tires generated has been more or less flat over 

the past few years. The used tire generation data for select periods is shown in Figure 23. 

54


Figure 23: Scrap tire generation (‘000 tonnes) 

600 

500 

400 

300 

200 

100 

0 

1996 1998 2000 2002 2003 2004 

Source: ETRA, Aliapur 

Ile-de-France and Rhone Alpes are the provinces that generate the highest number of scrap tires. The 

number of scrap tires generated by each province in France is given below: 

Table 14: Scrap tire generation in 2004 by province 

Province 


Ile-de-France 66,124 

Rhone Alpes 37,122 

Provence-Alpes Cote D'Azur 29,023 

Nord Pas-de-Calais 22,878 

Pays de Loire 20,603 

Aquitaine 19,343 

Bretagne 18,936 

Midi-Pyrenees 17,000 

Centre 16,033 

Languedoc Rousillon 14,745 

Lorraine 14,227 

Picardie 11,367 

Haute Normandie 11,054 

Poitou Charente 11,026 

Alsace 10,886 

Bourgogne 10,721 

Champagne Ardennes 9,531 

Basse Normandie 9,145 

Auvergne 8,720 

Franche Comte 7,190 

Limousin 4,786 

Corse 1,870 

Total 372,330 

Source: Aliapur 

Since France has traditionally used most of its scrap tires for landfills, there are a lot of tires that need to 

be recycled. It is estimated that there are about 3 million tonnes of scrap tires that are required to be 

recycled by 2008. 

55


Key Players 

Most of the players in the French scrap tire recycling market are very small. It is estimated that there are 

about 100 recycling companies in France that make tire waste for various consumers. The industry is 

expected to undergo consolidation in the coming years. Two waste management majors—Sita and 

Onyx—have entered the market due to its attractive growth potential. Sita is the waste management 

subsidiary of Suez Environment and Onyx is the waste management subsidiary of Veolia Environment. 


The chief industry drivers in France, as in other countries, are regulation and end-markets. However, 

regulation is the primary driver in France at the moment, as the end-markets are not as well developed as 

in countries such as the US. 

End-Markets 

The end-markets in France are still developing. Most tires are not recycled and are sent to landfills 

instead. In 2003, only about 52% of the scrap tires generated were recycled, 26% were reused and 22% 

were landfilled. The break-up of the scrap tire recycling market in 2003 is shown below. 



Tirederived 

fuel 

19% 

Tirederived 

products 

33% 

Tirederived 

fuel 

37% 

Reuse & 

Retreading 

26% 

Landfill 

22% 

Tirederived 

products 

63% 

Source: BLIC 

Source: BLIC 

56


Figure 26: Scrap tire end-market development (tonnes) 

250,000 

200,000 

150,000 

100,000 

50,000 

0 

1998 2000 2003 



End-markets for scrap-tire-derived products in France are expected to grow due to tougher regulation on 

landfills, stronger government support and industry initiatives. However, since the tire-derived fuel 

industry is facing opposition from environmental groups, other segments such as civil engineering 

applications, molded products and other applications are expected to grow faster than the tire fuel 

segment. 

Regulation 

Scrap tire recycling regulation in France is governed by EU regulations. France has made the tire industry 

responsible for collection and disposal of scrap tires. In response, the seven major tire manufacturers in 

France have formed a company—Aliapur—to manage the program. Aliapur is currently in the process of 

setting up a viable value chain and industry structure. To finance the scrap tire program, Aliapur has 

imposed a levy ranging from €2.6 to €179.7 on tire distributors depending on the type and size of the tire. 

The industry has passed on these cost increases to the consumer. Aliapur is also looking at ways to 

develop end-markets and is devoting considerable research towards this. 

France has no specific regulation that grants incentives to end-markets for scrap tires. There are also no 

specific caps on emissions resulting from burning of scrap tires. The emissions are expected to be in line 

with the broader emission regulations in place. 

57


Italy 

Introduction 

Italy is second only to Germany in the EU in terms of scrap tire recycling rates. However, when exports 

are excluded, Italy’s recycling rates are less impressive and on par with the UK and other countries. Most 

scrap tires in Italy were usually sent to landfills. However, with the deadlines for achieving EU landfill 

directives approaching, the recycling rates have gone up in recent years. The recycling rate in Italy was 

70% in 2003, according to BLIC. There is no central body in Italy that oversees or manages scrap tire 

recycling. Guidance and assistance for scrap tire recycling is provided by Eco.Pne.Us.—a voluntary nonprofit 

consortium formed by tire manufacturers in Italy. However, Eco.Pne.Us. does not participate in 

any collection or treatment operations. The regulatory framework is still evolving, with a legislation that 

mandates the formation of an organization by manufacturers and importers that would be responsible for 

scrap tire recycling. 





Used tire generation in Italy has been flat over the past few years. However, the statistics are not perfect 

and there is a high degree of under-reporting. This can be seen from the fact that while Italy has more 

vehicles than the UK, the reported number of used tires generated is much less than UK’s. According to 

the ETRA, Italy generated 388,389 tonnes of used tires in 2003. The number of used tires generated in 

select years is shown in Figure 27. 

58



450 

400 

350 

300 

250 

200 

150 

100 

1996 1998 2000 2002 2003 

Source: ETRA 

Key Players 

Some of the main players in the industry include Tritogom, Nuova Meridiana S.p.A., Graneco AD.RI.A 

S.r.l. and Ci.Gi.Pi. S.n.c. 

End-markets 

Till recently, most scrap tires in Italy were sent to landfills. As a result, end-markets are not well 

developed. Tire-derived fuel is the major end-market for scrap tires. Other markets include civil 

engineering applications and rubber goods. A substantial number of tires are exported. The destinations 

of scrap tires and the break-up of main end-markets in 2003 are shown below. 



Landfill 

8% 

Exports 

13% 

Tirederived 

products 

20% 

Exports 

19% 

Tirederived 

products 

29% 

Reuse & 

Retreading 

22% 

Tirederived 

fuel 

37% 

Tirederived 

fuel 

52% 

Source: BLIC 

Source: BLIC 

The market for tire-derived products is expanding faster than the market for tire-derived fuel. The 

growth is expected to continue as demand increases following the improvement in the industry’s ability 

to turn out reliable products and ensure a stable supply. However, the demand for tire-derived fuel is 

59


likely to be strong as it serves as an alternative fuel with oil and coal prices remaining high. The growth 

of the various end-markets over the last few years is shown in Figure 30. 


300,000 

250,000 

200,000 

150,000 

100,000 

50,000 

0 

1998 2000 2003 



While exports are substantial, it is doubtful whether they can be sustained. Countries are getting 

increasingly reluctant to process scrap tires of other countries as they feel it wastes the funds raised from 

their own citizens. 

Regulation 

In Italy, no formal regulations have been made addressing the scrap tire recycling industry. The EU 

directives, while issuing targets and guidelines, leave the method of implementation to the member 

states. However, Bill C. 7594 provides for the formation of a body run by manufacturers and importers. 

Industries have taken their own initiatives to improve their prospects. For example, several granulate 

companies formed Consorzio Granuli Gomma Co G.G in September 2002, which is responsible for the 

marketing of all rubber granulate production. There are also no specific emission norms aimed at 

furnaces using tire-derived fuel. 

60


Spain 

Introduction 

Spain is the country with the lowest scrap tire recycling rate amongst all its peers in the EU. Most scrap 

tires in Spain are sent to landfills. In 2003, as many as 60% of the generated scrap tires were sent to 

landfills. Of the 301,000 tonnes of scrap tires generated in 2003, only 25% were recycled or exported. The 

end-markets too are not well established. There are no regulations at the national level that deal with 

scrap tire recycling. The regulations are usually made at the provincial level. As a result, while growth 

avenues are promising, there is a lot of uncertainty due to the lack of proper policies and regulatory 

framework. 




Scrap Tire Generation And Stockpiles 

Used tire generation in Spain has been growing steadily over the last few years. In 2003, Spain generated 

301,000 tonnes of scrap tires. The number of scrap tires generated is expected to show a rapid growth in 

the coming years as Spain has a large number of stockpiled tires that need to be eliminated. The number 

of scrap tires generated in Spain in select years is shown in Figure 31. 

61



350 

300 

250 

200 

150 

100 

50 

0 

1996 1998 2000 2002 2003 

Source: ETRA 

End-Markets 

The scrap tire recycling industry is very small and tire-derived fuel is the main driver. The main users of 

tire-derived fuel, as in other countries, are cement kilns. Even equipment and support for many cement 

plants that have adopted tire-derived fuel is supplied by US firms. For example, TMI Systems installed 

the tire fuel feed system for Hornos Ibericos Alba, S.A., a company based in Jerez, Spain. In 2003, 12% of 

the scrap tires generated were used to make tire-derived fuel while 9% were used for tire-derived 

products. The destination of the generated scrap tires and the break-up of the end-markets in 2003 are 

shown below: 

Landfill 

60% 

Reuse & 

Retreading 

15% 


Tirederived 

Tirederived 

Exports products 

4% 9% 

fuel 

12% 


Tirederived 

Exports 

16% 

products 

36% 

Tirederived 

fuel 

48% 

Source: BLIC 

Source: BLIC 

The demand from end-markets has risen rapidly over the last four years. Both the tire-derived products 

and tire-derived fuel markets have grown considerably. The growth of end-markets over the last few 

years is shown in Figure 34. 

62


Figure 34. Scrap tire end-market development (‘000 tonnes) 

80 

70 

60 

50 

40 

30 

20 

10 

0 

1998 2000 2003 



The growth is expected to continue as Spain tries to eliminate its stockpiles and comply with the EU 

directives. 

Regulation 

Spain has adopted the EU directives through the National Plan for Used Tyres. There is no national level 

legislation governing scrap tire recycling. But provinces have passed legislation that promotes integrated 

management systems for scrap tire recycling. The Waste Management Act of 1998 provides broad 

guidelines for scrap tire management. While the Act stipulates that producers and marketers of products 

are responsible for waste management, it leaves the method adopted for waste management to the 

producers themselves. Producers can develop their own disposal schemes, form a group to implement 

such schemes or finance the public waste management service. 

Tire manufacturers and importers have formed NEDES, an association that provides expertise and helps 

in developing programs for improving scrap tire disposal. 

63


Japan 

Introduction 

Japan is one of the foremost recyclers in the world. Recycling is given utmost importance in Japan since 

land is at a premium and as such there is no space available for landfills. As a result, scrap tire recycling 

rates in Japan are higher than any other developed country, and usually average between 85-90%. About 

855,000 tonnes of scrap tires were recycled in 2003 and a major chunk of them were exported. Due to a 

high recycling rate and minimal stockpiles, the number of scrap tires recycled is unlikely to grow at a 

rapid pace. However, Japan is expected to improve its recycling rate and reach a 100% rate in the future. 

Tire-derived fuel continues to be the most important application of scrap tires in Japan, notwithstanding 

the plunge in its demand in the last two years. In contrast, export of scrap tires is rising rapidly. 


The structure of the scrap tire recycling industry in Japan is not much different from the structure of the 

industry in other developed countries. The schematic industry structure is shown in Figure X. Scrap tires 

arise from two sources—1. Tire replacement demand, wherein consumers replace their aging tires with 

new ones and discard the old ones and 2. End-of-life-vehicles, wherein tires are also disposed of as part of 

the total vehicle. 

Individual consumers typically dispose of old tires near dealers who include tire retailers, car dealers, 

service stations and car repair shops. The dealers supply the scrap tires to the distributors who in turn 

hand it over to the processors. Consumers such as car, truck and bus companies usually dispose of their 

scrap tires directly to the distributors bypassing the dealers since higher volumes are involved. 

Tires from end-of-life vehicles are disposed of by scrap metal companies directly to collection and 

processing companies. 

64


The industry structure in Japan is given in the following figure: 

Figure 35. Scrap tire recycling industry value chain in Japan 

Users 

Replacement 

End-of-Life Vehicles 

Dealers 

Scrap Metal Cos. 

Taxi & Truck Cos. 

Tire Fuel 

Distributors 

Collection, Transport & Processing Cos. 

Exports 

Source: JATMA 

Others 


Scrap tire generation in Japan was 100 million (1.00 million tonnes) in 2003. Of these, tire replacement 

demand accounted for 75 million tires (0.77 million tonnes) while end-of-life vehicles (ELV) accounted for 

the rest. Scrap tire generation in Japan from 1999 to 2003 is shown in Table 15. 

Table 15: Scrap tire generation (1999-2003) 

1999 2000 2001 2002 2003 

Scrap tires due to replacement 

Tires (million) 73 75 79 78 75 

‘000 Tonnes 731 792 817 894 780 

Scrap tires from ELV vehicles 

Tires (million) 22 23 24 24 25 

‘000 Tonnes 181 187 199 205 224 

Total 

Tires (million) 95 99 103 102 100 

‘000 Tonnes 912 979 1016 999 1004 

Source: Japan Automobile Tire Manufacturers Association (JATMA), Irevna estimates 

While scrap tire generation from end-of-life vehicles have been more or less flat for the last 10 years, scrap 

tire generation due to replacement demand has shown a cyclical pattern with an upward trend (Figure 

36). 

65


Figure 36: Scrap tire generation by source, 1994-2003 (millions) 

120 

100 

80 

60 

40 

20 

0 

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 

Tires Scrapped for Replacement 

Total Scrapped Tires 

Tires from ELV Vehicles 

Source: Japan Automobile Tire Manufacturers Association (JATMA) 

Scrap tire recycling in Japan from 1994-2003 is shown in the figure below. Similar to scrap tire generation, 

recycling has shown a cyclical pattern with an upward trend. 

Figure 37: Scrap tires recycled in Japan 1994-2003 (‘000 tonnes) 

1,000 

900 

800 

700 

600 

500 

400 

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 

Source: Japan Automobile Tire Manufacturers Association (JATMA) 

66


End-Markets 

In Japan, the bulk of the scrapped tires are used for fuel purposes and a major chunk of the rest are 

exported. Tight supply of raw materials and high energy costs are the main reasons for high usage of tires 

as raw material for fuel. The break-up of the scrap tire market on the basis of end-markets as well as endmarket 

development from 1999-2003 are shown below: 

Figure 38: Scrap tires end markets’ (2003) 

Figure 39: End-market development (‘000 tonnes) 

Exports 

31% 

Heat 

Utilization 

53% 

1,000 

800 

600 

400 

200 

Recycled 

16% 

0 

1999 2000 2001 2002 2003 

Tire-Derived Fuel Recycled Exports 

Source: JATMA 

Source: JATMA 

Tire-Derived Fuel 

In 2003, about 45% of the generated scrap tires (by weight) were used for heat utilization purposes. The 

bulk of it was accounted by the cement industry. However, usage of scrap tires for heat utilization has 

come down from 63% in 2001 to 44% in 2003. This is mainly due to the decline in usage of scrap tires as 

fuel in cement industry. Usage of scrap tires as fuel in cement kilns declined from 37% of total scrap tire 

generation (by weight) in 2000 to 24% in 2003. The fall is mainly due to the decline in the number of 

public works being executed and usage of other waste as fuel. Use of scrap tires as fuel in boilers declined 

due to regulatory pressures. The usage of scrap tires as fuel is likely to fall further as Japan comes under 

pressure to reduce its greenhouse gas emissions as part of the Kyoto Protocol and newer market 

applications of scrap tires are introduced. However, as energy prices rule higher, scrap tires might attract 

interest as an alternative fuel. However, this is unlikely to offset the fall in demand from cement kilns. 

The break-up of scrap tire fuel market in 2003 is shown in Figure 40. 

67


Figure 40: Segmental break-up of scrap tire fuel market (2003) 

Boilers 

5% 

Tire Mfg. 

9% 

Metal Refining 

5% 

Electric Power 

Generation 

2% 

Steel Mfg. 

11% 

Cement Kilns 

52% 

Paper Mfg. 

16% 

Source: JATMA 

Reclaimed and Powdered Rubber 

Reclaimed and powdered rubber usage was 97,000 tonnes in 2003, up from 93,000 tonnes in 2002. The 

main markets for this segment are molded products, new tires and other rubber applications. This is 

expected to grow further in the future as the tire-derived fuel market continues to decline and the 

industry tries to promote scrap tire recycling and alternative end-markets. For example, Bridgestone has 

developed a rubber additive from crushed scrap tires that can be used in pavements. The company has 

also recycled 70% of the tires it has recalled due to the Ford SUV accidents, which were blamed on 

Firestone tires. 

Exports 

Exports compensated for the fall in domestic use by increasing from 95,000 tonnes (9% of total) in 2000 to 

268,000 tonnes (26% of total) in 2003. Exports are much higher in Japan since there is not much space for 

landfills. 

Regulation 

Japan has no specific laws regarding scrap tire recycling. The issue has always been dealt as part of solid 

waste recycling. Furthermore, Japan has a long-running co-operative program that co-opts tire 

manufacturers, government agencies and other industry players for scrap tire recycling. In addition, there 

are no specific regulations governing emissions from burning scrap tires. The emissions are expected to 

meet the broader emission regulations issued from time to time. 

The Japanese End-of-Life Vehicle Recycling Law targets a 90% recycling rate of tires on end-of-life 

vehicles by 2005. This would give a further impetus to tire recycling. The recycling rates are expected to 

improve further as Japan tightens its regulation and tries to improve consumption from end-markets. 

68


Conclusions 

Scrap tire generation is likely to be flat in the wake of stagnant automotive demand. Industry growth 

rates in Japan are likely to taper off due to peaking of recycling rates and the lack of any significant 

stockpiles. 

The industry is too dependent on tire-derived fuel and there is a need to develop other end-markets. The 

tire-derived fuel market has been declining for the past few years but has been offset by a rise in exports. 

Any substantial fall in exports could lead to a supply glut in the domestic market resulting in a fall in 

prices. 

69


GLOSSARY 

Additive 

A minor constituent of tires added to confer some required characteristic(s). 

Aromatic polyamide 

Type of synthetic polymer used in tire construction; a group of chemical compounds containing aromatic 

rings for example Kevlar®. 

Bead 

Portion of mounted tire that is shaped to fit the wheel rim; composed primarily of a circular cord 

(assembly) of strands of high-tensile steel wire. 

Bead steel (or wire) 

Steel wire contained within the tire bead. 

Belt 

An assembly of fabric, wire, or both used to reinforce the tire tread. 

Belt steel (or wire) 

Steel wire located with the fabric layer immediately below the tread. 

Bias tire 

Tire assembly composed of two or more plies that are positioned at 30 to 45 degrees to the centerline of 

the tread. 

Body 

Tire assembly except for tread and sidewall rubber. 

Body steel (or wire) 

Steel wire contained within the plies. 

Component 

Part of a whole or mixture; for example, a type of material, such as natural rubber, is a component of 

waste tires. 

Composition 

The makeup or constitution of a whole or mixture; collectively, the individual components of a whole or 

mixture; commonly expressed as a percentage of the whole. 

Constituent 

Same meaning as “component. 

70


Cord 

An assembly of twisted strands of fibers composed of plastic resin(s), such as polyester or rayon, or steel, 

that provides tires and belts with strength. 

Crumb rubber 

Finely sized rubber product recovered from waste tires. 

Fiber 

Natural or synthetic fiber used in tire construction. 

Nylon 

Type of synthetic polymer used in tire construction. 

Plies 

The fabric layers that compose the cord body of the tire. 

Polyester 


Polymer 

A long-chain chemical compound composed of many smaller, identical molecules. 

Radial tire 

Tire constructed such that the plies underlie the tread at 90 degrees. 

Rayon 


Rubber 

Natural or synthetic rubber. 

Sidewall 

Portion of tire assembly between the edge of the tread and the bead. 

Tire-derived fiber 

Fiber separated from waste tires as a consequence of processing. 

Tire-derived fuel (TDF) 

Materials having fuel value recovered from waste tires (most commonly the rubber materials, but also 

can include fiber). 

Tire-derived steel 

Steel separated from the other components of waste tires as a consequence of processing. 

71


Tread 

Portion of tire that contacts the road surface. 

Vulcanization 

The thermal process (under pressure) that chemically links rubber compounds and polymers together, 

forming an elastic mixture. 

Waste tire 

A tire that is no longer mounted on a vehicle and is no longer suitable for use as a vehicle tire due to 

wear, damage, or deviation from the manufacturer's original specifications. A waste tire includes a 

repairable tire, scrap tire, and altered waste tire, but does not include a tire-derived product, crumb 

rubber, or a used tire that is organized for inspection and resale by size in a rack or a stack. 

72

TIRE RECYCLING INDUSTRY - Global Research & Analytics

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