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THE BUSINESS POTENTIAL OF RECYCLING SCRAP TYRES IN MALAYSIA


STATISTICS OF RUBBER COSUMPTION BY PRODUCT SECTORS (TONNES) Table 2: Malaysia's Rubber Position (Tonnes), 2000 - 2004*

Production of NR

2000 2001 2002 2003 2004 2005* 927,608 882,067 889,832 985,647 1,174,593 274,651

Export of NR

977,978 820,854 886,873 945,889 1,106,086 276,441

Consumption of NR

363,715 400,888 407,884 420,775

Consumption of SR

95,000 96,000 122,000 123,000

402,462

92,578

137,000 18,000**

Source: IRSG (consumption of SR only) DOS, Malaysia Note:

Year

Latex goods

* January to March only ** January to February only

Tyres

General rubber goods 46 315 46 912 35 457 55 131 51 446 47 913 52 429 52 029 26 208

Industrial rubber goods

Footwear

Total

1996 268 733 28 456 4795 407 452 59 150 1997 265 678 25 723 5368 409 046 65 365 1998 273 864 15 196 3379 376 619 48 723 1999 270943 15 574 4343 396 681 50 690 2000 289 865 16 391 5712 419 324 55 910 2001 343 789 14 687 2846 45 8284 49 049 2002 348 907 12 568 3048 471 034 54 084 2003 367 080 12 812 2218 488 233 54 094 2004* 171 906 5275 343 246 312 42 580 *January – June Source: Department of Statistics, Malaysia; Rubber Research Institute of Malaysia, MRB


ESTIMATED SCRAP TYRES IN MALAYSIA   1. 2. 3.

Alam Flora handles over 7,100 tons of waste per day and this rarely include special waste (Tyres) Another Theory applied to determine the amount of Scrap Tyre waste in the country:is to Work on the general rule of 1 passenger Tire per head of population per annum I.e. 26,748,759 Work on the general principle of ¼" light truck or truck Tire per head of population. Number of Vehicles on Malaysian roads as follows:- STATISTICS 2005 Motorcycles Recorded 7,008,051

2005 422,255 Motorcars

Recorded 6,473,261

2005 537,900 Private

Recorded 136,500

2005 9981 Commercial

Recorded 805,159

2005 33,532 Others

Recorded 393,438

2005 16,440 Drivers

Recorded 9,993,438

2005 427,691

IT IS SAFE TO ESTIMATE THAT THE AMOUNT OF SCRAP TYRES RUN INTO THE MILLIONS


FACTS ď śMunicipal

Solid Wastes (MSW) - In Malaysia, 90 percent of Municipal Solid Waste (MSW) is disposed of through landfilling while 5 percent is recycled and between 1 and 2 percent incinerated, the rest ends up in drains and illegal dumps. Malaysia should emulate the European Community disposal breakdown of MSW's of 55 percent through recycling and composting, 35 percent through incineration and 10 percent through landfilling. Last year, about 7.34 million tonnes of solid wastes were generated in Malaysia, enough to fill up 42 buildings the same size as that of the world-renowned Petronas Twin Towers "More than 30 per cent of our garbage is recyclable, and these materials can be prevented from ending up in the landfills and incinerators,"


WHAT HAPPENS TO SCRAP TYRES? RECYLCING RETREAD LANDFILL OTHERS

MALAYSIA

LANDFILL DEVELOPED COUNTRIES

RETREAD

OTHERS

RECYCLE


USES OF SCRAP TYRES SCRAP TYRE UTILIZATION ALTERNATIVES


REPROCESSING TECHNOLOGIES RETREADING

Retreading utilises a significant proportion of the rubber and all the fabric and steel in a tyre. The processing energy is reported to be lower than for a new tyre though the actual reduction varies depending on the type of retreading (whether hot or cold or remoulding). Even using rough estimates it is evident that retreading has significant potential to reduce overall energy and greenhouse emissions, as well as reduce the quantity of waste tyres that are produced. The energy to retread a passenger tyre is approximately 400 MJ (compared with 900 MJ for a new tyre) of which 75% (300 MJ) is estimated to be contained in the retread materials and the remainder is energy used in the process.


REPROCESSING TECHNOLOGIES

CRUMB RUBBER [CR]

RUBBER GRANULE

CRUMB RUBBER [CR]----Crumb rubber is rubber that has been shredded and reduced to a particle size of 3/8 inch or less. This quality material in crumb form is capable of performing numerous tasks once applied to a variety of end products. Examples of usage are: Tiles and tile adhesives, rubberized asphalt for road building and building materials. sports surfaces, carpet underlay, noise and vibration insulation, rail crossings, sound barriers, industrial flooring, sealant, carpet pads, shoe soles, playgrounds and rubber matting, pond liners, conveyer belts, recycling bins, oil spill absorber, floating docks, wharf pilings and buffers, agricultural pipes, animal bedding and fencing. T-Mesh® - T-Mesh 40 T-Mesh® is the trade name for premium quality tyre crumb rubber. It’s applications are wide ranged and can be applied to numerous products as a compounding substitute as mentioned above. Rubber granules are recycled from automotive/ industrial rubber waste. It can be applied to the underlay for Children’s playgrounds, running tracks and rubber tiles.


REPROCESSING TECHNOLOGIES 1.

TYRE DERIVED FUEL SYSTEM [TDF] IN THE PRODUCTION OF TYRE CRUMBS - a proven energy source mainly for Cement Kilns- "Temperatures in excess of 1,400r C are required to produce the cement clinker. The following characteristics make cement kilns suitable for burning tyres: • high temperature • long residence time • oxidizing atmosphere • high thermal inertia • alkaline environment • no ash residue • continuous fuel requirement".• complete destruction of the rubber and cotton content of the tyre • no black smoke • no smell • overall reduction in emissions • the metal content of the tyre is incorporated into the cement clinker.


REPROCESSING TECHNOLOGIES Civil Engineering Applications (CEA), Rubberized Bitumen- Surface modification includes a range of processes that change the surface chemistry of the rubber particles so that they can combine more readily with other substances. Conventional road system using bitumen and aggregates is prone to premature failures due to cracks and rutting and subsequently require repeated expensive maintenance during its service life. Incorporating scrap tires which has been ground to a specified particle size into a bituminous mixture will offer many advantages and they are: 路

Durability - rubberized pavements have excellent durability in terms of cracking and aging resistance.

Reduction in maintenance - the Malaysian Public Works Dept spends on average RM400 million every year on road maintenance and the rubberized bitumen could result in cost saving to the country.

Cost effectiveness - The life cycle cost is lower because of long life cycle of rubberized pavements and enhanced performance and in addition the thickness of the pavement can be reduced and this lowers the initial construction cost.

Increase skid resistance - provide added safety to road users. Noise reduction - rubberized pavement provides lower tire noise and hence a quieter ride. Environmentally friendly - the ever increasing number of scrap tires can be safely recycled and hence protects the environment. The left lane is the Malaysian first open-graded pavement which incorporates rubberized bitumen at Batu Hitam, Kuantan. Resurfaced in September 2002 with a total length of 200m


Civil Engineering Applications (CEA),

APPLICATIONS:Enables a wide range of building solutions to be cost effectively constructed using recycled raw materials. The technology has been proven effective in important applications for four major industries: 路 Civil Construction 路 Mining 路 Commercial Construction 路 Agriculture & Aquaculture Civil Construction Retaining walls, sealed and unsealed roads and hard stands, drainage and water flow systems Mining Underground roads and retaining walls Commercial Construction Concrete slabs and sealed pavement Agriculture & Aquaculture Dams, ponds, creek crossings, access roads, wave barriers


OTHER REPROCESSING TECHNOLOGIES REVERSE POLYMERIZATION The patented Reverse polymerization technology employs microwave energy to break down and separate tyres into carbon black, oil, steel and hydrocarbon gases. Reverse polymerization technology can hence generate financial returns through the sale of the end products. Each 20 lb tyre is reduced to roughly 7.5 lbs of carbon black and 2.0 lbs of steel. The remainder of the tyre byproducts (oil and hydrocarbon gases) can be used as fuel for the production of electricity.The carbon black produced by the system has many potential markets including the production of new rubber products. The steel can be sold for recycling. DEVULCANIZATION TECHNOLOGIES Thermal reclaim process: The oldest form of devulcanization — patented in 1858 — is also the least promising. Thermal devulcanization involves exposing rubber to high temperatures for an extended period of time to break the sulphur bonds. The process also breaks the polymer chains themselves, severely degrading the value of the rubber. The process also presents environmental and public health risks and is rarely used today. Mechanical devulcanization: This process used rollers, mixers and extruders to mechanically "chew" away at the sulfur bonds. It produces good results but is not yet economically viable. Devulcanization with ultrasound: Early efforts using ultrasound to break the sulfur bonds in vulcanized rubber were encouraging.


REPROCESSING TECHNOLOGIES BLACK GOLD

Pyrolysis

Pyrolysis of scrap tyres involves utilization of heat, in the absence of oxygen, to speed up the decomposition of organic material. into its original components such as carbon black, recovered oil, gas and steel wires. Carbon black has been used as a reinforcing agent in tires. Today, the uses of carbon black have expanded to include acting as a pigmenting, UV stabilizing and conductive agent in a variety of common and specialty products, including: •Plastics: carbon blacks are now widely used for plastic masterbatch applications, such as conductive packaging, films, fibers, moldings, pipes and semi-conductive cable compounds. •Toners and Printing Inks: Cabot carbon blacks enhance formulations and deliver broad flexibility in meeting specific color requirements. •Coatings: Carbon blacks provide pigmentation, conductivity and UV protection for a number of coating applications including marine, aerospace and industrial. •Tires and Industrial Rubber Products: Carbon black is used in tire inner liners, carcasses, sidewalls and treads, as well as in industrial rubber products, like belts, hoses and gaskets.


Pyrolysis

PRINTING INKS

PIPES

Masterbatch The products are designed for a wide range of thermoplastic polymers and are sold to the following markets: •Film •Fiber •Molding •Cable jacketing •Pipe •Sheet

Combining conductive carbon black and thermoplastic resins. •Electronics packaging •Safety applications •Automotive parts

SEMICON

FIBER

•GENERAL APPLICATIONS

•Packaging carrier bags •Refuse sacks •Covering hoods •Industrial bags RUBBER MOLDING •Protection building •Photographic •Surface protection •Agriculture mulch film •Silage film •Stretch wrap


THE BUSINESS PLAN

THE BUSINESS PLAN RESTS FIRSTLY ON THE CHOICE OF THE RIGHT REPROCESSING TECHNOLOGIES TO BE APPLIED. IN ASSESSMENT AND EVALUATION IT IS RECOMMENDED THAT PYROLYSIS IS MORE FAVOURED OVER OTHERS TO HANDLE VOLUME AND MORE IMPORTANTLY DERIVE BETTER PROFIT MARGINS. PYROLYSIS INVOLVES BREAKING TIRES DOWN BEYOND THE RUBBER TO:1. CARBON BLACK 2. HYDROCARBON THAT THE RUBBER IS MADE FROM 3. LIBERATION OF RADIAL STEEL IN THE TIRES 4. HYDROCARBON GASES – A LOW TO MODERATE BTU METHANE


PYROLYSIS ABSTACT FROM PILOT PROJECT ESTIMATED PRODUCTION PER MONTH BASED ON 20 TONS PER DAY INPUT MATERIAL VEHICLE TYRE

500 TON

100.0%

ESTIMATED SALES VALUE

CARBON BLACK

168 TON

33.6 %

RM2.50 per Kg

STEEL WIRE

57 TON

11.3 %

RM1.00 per Kg

HYDROCARBON OIL

125 TON

25.0%

RM1.00 per Liter

EXTRACTION OF BTU METHANE IS VIABLE – R&D


PROJECTED MONTHLY PROFIT PROJECTED MONTHLY GROSS PROFIT MATERIALS

HYDROCARBON OIL STEEL WIRE CARBON BLACK TOTAL

500 TON PER MTH

ESTIMATED SALES VALUE

UNIT PRICE (RM/Ton)

125 T/Mth

25.0%

RM1.00 per Liter

1,100.00 TO 1,400.00

1`37.500.00 to 175,000.00

56.5 T/Mth

11.3%

RM0.80 per Kg

500.00 TO 800.00

28,250.00 to 45,200.00

RM2.50 per Kg

1,000.00 TO 2,000.00

168,000.00 to 336,000.00

168 T/Mth

33.6%

349.5 T/Mth 69.9%

AMOUNT (RM/Ton)

333,750.00 to 556,200.00

LESS OPERATIONAL OCST

93,600.00

ESTIMATED NET PROFIT BEFORE TAX

240,150.00


CRITICAL SUCCESS FACTORS

A. SUPPLY OF RAW MATERIAL – ESTABLISHING THE SOURCE OF SUPPLY OF SCRAP TYRES AND ENSURING THAT THE VOLUME OF SUPPLY IS CONSISTENT AND CONTINUOUS. – cost of raw material if procured must be below RM1.00 per tyre Inclusive of transport cost) The source of supply of Scrap Tyres in Malaysia is identified as follows: 1. Municipal Dumps – locations to be denoted 2. Tyre Shops – locations to be denoted B. ESTABLISHING THE DEMAND AND THE PURCHASERS OF RECOVERED MATERIAL, THE QUANTITY, THE QUALITY AND PRICE C. FINANCIAL COSTINGS, BREAKEVEN (ROI) AND PROFITIBILITY. D. MACHINE AND TECHNOLOGY IS PROVEN SUCESSFUL.


STOCKPILING SCRAP TYRES – ACTUAL SITE IN A PYROLYSIS PLANT MALAYSIA


THE PYROLYSIS MACHINE

INVENTED AND MANUFACTURED IN MALAYSIA


PRODUCTION OF PLANT

STEEL WIRE

CARBON BLACK

RECOVERED OIL

METHANE GAS


NEXT STEP

ENGAGE A COMMITTED TEAM TO WORK ON THE PILOT PROJECT. AREAS OF COVERAGE WILL INCLUDE:- NEGOTIATION ON TECHNOLOGY AND MACHINE TO BE DEPLOYED ON PILOT PROJECT BASIS FOR PERIOD OF 1 TO 3 MONTHS TO EVALUATE MACHINE PERFORMANCE AND TECHNOLOGY RESULTS FINANCIAL COSTING AND EVALUATION OF PLANT SET UP AND OPERATIONAL COSTS. LABORATORY TESTING ON PROCESSED MATERIAL. MARKET READINESS FOR SALE OF PRODUCTS. ESTABLISHING SUPPLY OF RAW MATERIAL AND MAPPING LOGISTIC COST. TECHNICAL TRAINING, WARRANTIES AND MAINTENANCE ISSUES. REGULATORY LICENSES AND PERMITS FROM THE NECESSARY AUTHORITIES. TIMELINES AND PLANT SET UP.


THE END OF THE PRESENTATION & THE BEGINNING OF A PROJECT

Recycle scrap Tire  

Business Opportunity

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