Is Tyre Recycling Business Profitable
While many materials can be recycled, tires are undoubtedly a particularly lucrative option. The reason is that recycled tires can be used to produce oil through a well-established pyrolysis process.
Oil has always been highly profitable, and since oil is not going to be a renewable resource, the price tag is not really going to come down anytime soon. Many companies want to experiment with buying oil made from recycled materials, which explains why so many people want to buy oil from tire recycling plants.
Another viable option for tyre recyclers is to invest in presses and moulds to produce molded products from crumb rubber or powdered rubber. There are more sophisticated technologies, such as mixing recycled rubber powder with polyethylene or polypropylene to produce thermoplastic elastomers (TPE).
Generally, manufacturing and selling consumer goods is more profitable than producing and selling raw materials, but there are many opportunities in the market, in the area of moulding of recycled rubber and other value-added products. The most common examples of moulded products are playground MATS, gym floor tiles, rubber kerbs, traffic safety products, insulation boards, horse MATS, cattle carpets, etc.
The operating costs of a tire recycling plant are lower
There are lots of factories that produce goods that happen to be in demand, but don’t make a lot of money. Usually, this happens because the total operating expenses of the plant are high. In contrast, tyre recycling plants can be quite cheap to operate. Because these factories can get the materials they need at a lower price. In addition, the machines used in these factories are usually energy efficient.
Small market competition
While there are many factories that recycle tires, there are not enough factories to meet the existing demand. In fact, some of the tires that need to be recycled are not sent to any factories. It is easier to generate income in an industry where demand is not being met.
Easy To Buy Affordable Machinery
To open a factory in this way, it is likely that you will need to purchase tyre recycling equpiments needed for the operation of the factory. In most cases, more than one piece of equipment must be purchased. While this is often a significant expense, there are many affordable options on the market.
Once you order from an international supplier, you can find that machines like this are coming from places that are cheaper than the average price. If you want to determine whether such a plant is a worthwhile investment, take a close look at the machinery the supplier can sell and see what your initial cost might be.