Western Australian waste tyre recycling company Reclaim Industries Ltd is preparing to reap the benefits of a state government initiative banning the dumping of used tyres into landfill by 2011.
Western Australian waste tyre recycling company Reclaim Industries Ltd is preparing to reap the benefits of a state government initiative banning the dumping of used tyres into landfill by 2011.
The Australian Securities Exchange listed company, whose Bibra Lake plant processes the equivalent of 66,000 car tyres per month, is currently undertaking plant improvements in anticipation of an increase in demand for their services.
Managing director Richard Timms said that Reclaim was the only company in Australia to have a vertically integrated business, completing the end to end recycling process.
Reclaim produces crumb rubber material from commercial truck and car tyres, converting it into a number of products such as ‘soft fall’ playground surfaces, golf walkways and equestrian tracks.
Mr Timms said the company was currently investing in research and technology into additional applications, as well as undertaking upgrades to its plant, which will increase volume and efficiency.
He said the convergence of a supportive legislative environment, with strong global demand and technological advances, would assist the company in achieving viable economies of scale and improve cost efficiencies.
“We’re doing a lot in the science and technology area, which is going to deliver a lot of benefits to our company and the marketplace,” he said.
“Cost efficiency, in some processes, has not been there in the past. We’re looking to keep our costs down.”
Mr Timms said he believed there would not be an increase in the $2 per tyre levy already imposed at the retail end to cover tyre disposal, to subsidise the recycling program.
Reclaim listed on the ASX in February 2002 and is the result of a merger between three rubber recycling and products companies: Entyre Rubber Systems, Playsafe Australia and Leisuresafe Holdings.
Late last month, the government announced it would phase out the dumping of loose tyres into landfill, aiming for a total ban in the Perth metropolitan area and larger regional centres by 2011.
About two million tyres are disposed of in WA each year, contributing 25,000 tonnes to landfill annually.
The management and disposal of tyre waste has been the subject of much discussion and consultation with stakeholders, including the tyre and recycling industries.
But Motor Trades Association WA executive director Peter Fitzpatrick believes that while disposal of used tyres was an issue, imposing a ban on dumping tyres into landfill may lead to other unwanted problems, such as stockpiling or illegal dumping.
He said the underdeveloped tyre recycling industry in WA may not have the capacity to absorb the large influx of tyres once the ban comes into force.
“The government has to work harder in trying to find markets for recycled tyres,” he said.
“A blanket ban is not the answer.”
