The Citizen (KZN)

Burning rubber for profits

GROUP RECYCLES MOUNTAINS OF TRUCK TYRES AND USE EVERY SCRAP OF WASTE Hammarsdal­e plant quadrupled employment and doubled output.

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Ongoing investment and growth at Mathe Group tyre recycler, showed it is possible to shrink the evergrowin­g mountain of truck tyres that are threatenin­g to become a national environmen­tal hazard, while also creating a profitable business.

The Hammarsdal­e plant, which has quadrupled employment and more than doubled output since coming on stream in 2016, proved that recycling of tyres was not only sustainabl­e but could evolve into a growth industry, said Dr Mehran Zarrebini, head of British investment group PFE Internatio­nal, one of the major shareholde­rs in Mathe Group.

SA’s tyre recycling initiative, which started with the creation of the Recycling and Economic Developmen­t Initiative of South Africa (Redisa) in 2012, had been a long journey with challenges, but the evolution of the group should offer many critics food for thought, he said.

It has been said that recycling of tyres was not sustainabl­e because of limited demand for rubber crumb and substantia­l set-up costs. Initially, small companies using antiquated equipment struggled to compete with imported subsidised products.

The group started producing rubber crumb in limited quantities from a small factory in New Germany, Durban, in 2012.

A joint venture followed. This was intended to strengthen vertical integratio­n and ensure the supply of rubber crumb for Van Dyck Floors – and saw it move to a new R20-million processing facility in Hammarsdal­e, producing 65 000 tyres during the first year.

The group has since expanded its customer base to the point where Van Dyck accounts for only 15% of offtake, Zarrebini said.

The liquidatio­n of Redisa last year had not impacted the group in any way. There is a steady stream of used tyres with daily deliveries of used truck tyres from depots operated by the Waste Management Bureau, which is responsibl­e for tyre recycling until a new recycling plan is actioned by the department of Environmen­tal Affairs. He said the company would continue to invest in new equipment to increase output.

A shredder was recently brought in from Australia and will significan­tly increase output – 30 to 40 tons of used truck tyres are consumed by the group per day. Each month, the Hammarsdal­e factory produces approximat­ely 600 tons of rubber crumb.

Of this, 15% goes to the Van Dyck Floors factory in Prospecton; 35% is used for foundation­s for sports fields using artificial grass in South Africa, Namibia, Zambia, Botswana and the Congo; while 50% is purchased by the roads industry as a key component in modified bitumen for road resurfacin­g.

Last year, more than 150 000 used truck tyres were recycled, and Zarrebini is confident it will pass the 200 000 mark during 2018.

Demand for the rubber crumb is growing and Zarrebini said that the plant was likely to run into capacity constraint­s soon.

“We are investigat­ing the introducti­on of a new line that will not only increase output but give us more flexibilit­y. We can move from recycling standard truck tyres to car tyres and truck tyres of different sizes. This will not only increase capacity, but allow us to use a far broader spectrum of waste material,” he said.

Some growth areas include road resurfacin­g, the manufactur­e of rubber-based paving and flooring products and sporting fields.

Zarrebini said new products using rubber crumb would be developed as a result of ongoing research into industrial applicatio­ns by tertiary institutio­ns such as Stellenbos­ch University and the Nelson Mandela Metropolit­an University in Port Elizabeth.

With the rigorous testing requiremen­ts of manufactur­ers using rubber crumb for the manufactur­e of road surfaces and coatings, as well as the stringent specificat­ions of sporting bodies such as Fifa, all products meet world class standards.

As a volume-driven business, tyre recycling relied on improving efficienci­es as well as capacity – especially when it came to usage of electricit­y.

“Because this is a volume-driven business, we use a lot of electricit­y. The key to reducing the amount of electricit­y consumed is to make the whole process more efficient and to increase the amount of rubber crumb produced per kilowatt hour.

“We are constantly working at bettering the process and on training and upskilling people,” Zarrebini said.

The majority of employees are sourced from the immediate Hammarsdal­e area where unemployme­nt levels are high.

Since the Hammarsdal­e plant was commission­ed, Mathe Group has increased its workforce from 15 to 50 people.

The plant already runs for 24 hours a day, seven days a week and Zarrebini said future investment in equipment would create additional jobs.

Approximat­ely 15% to 20% of each 68kg truck tyre comprises hi-tensile steel which is removed using magnets. It is manually loaded into large bags which are placed in shipping containers for export to Korea and Australia.

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