Steps to Start A Tire Shredding Business

For waste management authorities and landfills, worn-out tires are one of the most problematic and substantial sources of waste. But tire recycling offers many profitable business opportunities because rubber can be reused in various ways.

A Growing Opportunity

For a very long time, old tires were stocked. In 1990, only 11% of old tires were recycled in end-use markets. With the growth of tire-recycling programs, however, as of 2017, end-use markets consumed 81.4% of scrap tire generation.

Tire-Derived Fuel (TDF): TDF produces more heat than the same load as coal. As such, TDF offers an attractive and clean alternative to coal for use in cement kilns, pulp and paper mills, and electric utility boilers. In 2017, the TDF market consumed 106 million scrap tires, accounting for more than 43% of the annual US scrap tire generation.

Ground Rubber Application: Ground rubber is made by grinding scrap tires into small pieces of varying sizes. Popular applications include rubber mats, landscaping mulch, rubber products and mats, and rubber modified asphalt. Ground rubber used 62 million scrap tires in 2017, more than 25% of scrap tire generation.

Civil Engineering: Shredded tires are becoming more popular as an alternative to sand or soil in road and landfill construction, landfill cover, septic tank areas, and many construction works. Civil engineering applications used 19 million tires in 2017, accounting for about 7.9% of the total.

Other markets: Other scrap tire opportunities include electric arc furnaces, professionally engineered tire bales, and pressed, stamped or pressed products from scrap tires. These activities constitute about 7.4% of the production

With so many outlets for shredded tires, this can represent an exciting business opportunity for you. If yes, here are some important steps to start your business.

1. Find Sources and Markets for Your Output

As a first step in exploring the opportunity to start a tire-shredding business, you need to identify local opportunities to source old tires and sell your processed scrap to customers. It pays to “follow the old tires” to understand what happens to them. Are they being raised regularly? Where is he going? Look at the scrap tire businesses running in your area. If you see tire accumulation, are there incomplete requirements for customers interested in removing old tires or purchasing processed materials?

2. Identify Potential Site Locations

The optimal site location depends on many variables. Some of them are predicted to reduce freight costs related to bringing in scrap tires and sending processed materials out. And when tire sources and markets are of critical importance, you should consider other business location factors, such as zoning and permits, environmental considerations, adequate space for storage, unloading and loading, as well as road access.

3. Prepare a Complete Business Plan

An incomplete business plan can cause problems after starting your business. Try to find similar businesses or talk to entrepreneurs or tire-recycling equipment vendors. Know what to do to start a shredding business and plan well from the beginning. You can find tire-recycling business plans available for free or for purchase online. Depending on the desired size of your business, you will need to purchase dumpers, conveyors, and other material-handling equipment. Prepare for a minimum investment in equipment of at least $ 100,000.

If you have no experience in the industry, it may be a good idea to look for work in the tire-recycling industry first. You can also start by building a small, related business such as an old tire hearing service.

4. Start Shopping for Tire-Shredding Solutions

Once you have a complete business plan, which includes a financial strategy, you are ready to set up shop. You need a tire rental business to rent a property and get machinery. Since you have already researched the prices of equipment while preparing your business plan, you should have some confidence as you are acquiring machinery.

5. Hire Employees and Start your Own Business

When you have purchased and installed your double shaft industrial shredder, you can start operating your business. Hire a substantial number of employees to assemble, transport, clean, and assemble old, worn-out tires and turn them into a salable material.

Learn More

These are necessary steps to open a tire-recycling business. Keep in mind that shredding or grinding of the material translates to other recycling opportunities. Of course, any enterprise of this nature involves many challenges and financial risks, so careful planning is important. To explore the opportunity in more detail during your business plan development, consider attending the Scrap Tire Research and Education Foundation’s Scrap Advantage conference or subscribing to industry publications, such as Scrap Tire News.