04/10/2007 - 13:10

Reclaim secures $567K grant for SA plant

04/10/2007 - 13:10

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Bibra Lake-based rubber recycling and manufacturing company Reclaim Industries Ltd has been awarded a $567,500 grant by the Federal and South Australian governments for their increased investment in the state.

Bibra Lake-based rubber recycling and manufacturing company Reclaim Industries Ltd has been awarded a $567,500 grant by the Federal and South Australian governments for their increased investment in the state.

The money, awarded to the company through the Innovation and Investment Fund for South Australia, will be used to establish a tyre recycling and re-processing facility in Adelaide - which Reclaim says will be the first of its kind in South Australia.

 

 

The full text of a company announcement is pasted below

Waste tyre recycling company Reclaim Industries Ltd (ASX: RCM) today announced that it has been awarded a Government grant to the value of $567,500.

The Innovation and Investment Fund for South Australia (IIFSA) grant, jointly funded by the Federal and South Australian Governments, is designed to attract investment and sustainable job opportunities in South Australia.

Reclaim Industries will use the funds from the grant to expand its operations in South Australia by establishing a tyre recycling and re-processing facility in Adelaide. The tyre recycling facility will be the first of its kind in South Australia.

The state-of-the-art plant will recycle and granulate commercial truck tyres to produce a range of new rubber-derived products for applications in grouts and adhesives. At full capacity, the new facility will recycle approximately 6,000 tyres per month and employ up to 30 people.

Total expenditure for the new facility is estimated at $1.135 million. Reclaim intends to match the grant funding to meet the total capital and to provide additional funds for operational requirements.

Reclaim Industries Director for Business Development, Chris Forrester, said the establishment of the South Australian facility would enable Reclaim to implement modern recycling processes to produce a new range of products and target additional markets such as the rail infrastructure industry.

"At the new facility we will utilise a new process similar to others in Europe and the US for using granulated waste tyre rubber, waste plastic and waste paint to mould railway sleepers and other extremely durable products," said Mr Forrester.

"We believe there is significant demand for this range of products both in Australia and abroad, potentially providing a new market for Reclaim products and an additional revenue stream for the company."

Mr Forrester said the introduction of a tyre recycling facility to the South Australian market was timely given the growing focus on responsible recycling from governments and industry.

"South Australia produces around 1.4 million waste tyres every year and it is estimated that 15%, or 210,000, of these are truck tyres," said Mr Forrester.

"Because there are no tyre recycling businesses operating in South Australia, the State Government has estimated that approximately 90% of those tyres are disposed of as landfill, with around 7% transferred interstate for recycling and the balance of 3% is either illegally dumped or stockpiled."

"Reclaim's tyre recycling facilities eradicate the problems associated with the disposal of old tyres as waste."

"The process also makes excellent economic sense. By recycling tyres we can produce a range of rubber products such as play ground surfacing, equestrian tracks and even railway sleepers."

"We are extremely gratified at being awarded this grant and look forward to moving forward with construction of the facility."

Construction of the tyre recycling and re-processing facility is expected to begin in early 2008 with full operations expected late in 2008.

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