The main purpose of this review is to determine the economic feasibility of purchasing a used tire recycling machine. The benefit would also include an environmental clean-up of used tires that are difficult to dispose. The sales prices for the crumb rubber were obtained from a research paper covering Prices & Marketing Survey conducted by the Recycling Research Institute.

Basic Information

  • Price of turn-key equipment set-up - FOB $1,280,000 up to 60 mesh crumb rubber equipment $118,000, OPTIONAL STEEL SK-TS $360,000
  • Freight, duty, taxes estimates - $70,000
  • Installation - included in equipment price
  • Warranty - one year all equipment
  • Building requirement - 100 ft x 60 ft x 23 ft high

Total Purchase Cost is $1,468,000 (including up to 60 mesh equipment)

 

Revenue Projections

  • Processing average - 190 tires per hour, assuming 90% Auto and 10% Truck
  • Average weight per used tire
    • Assume auto is 20 lb/9 kg and truck is 80 lb/36 kg
    • Assume used tire is 60% rubber, 25% steel, and 15% material and dirt
  • Crumb rubber 6 to 10 mesh produced per hour - 2,200 lb/1,000 kg
  • Steel produced per hour - 950 lb/432 kg
  • Fluff and dirt per hour 570 lb/260 kg
  • Average revenues per hour
    • Based on 6 to 10 mesh crumb rubber at $260 per ton/1,000 kg - $260
    • Based on steel at $85 per ton or 1,000 kg - $37
  • Average revenues per week - $11,880
  • Annual average revenues based on 49 weeks - $582,120
  • Tires processed per year at an 8 hour day, 5 days per week - 372,400
  • Tire fee of $1 per tire disposal fee $372,400

Total Revenue is $954,520 (based on just 6 to 10 mesh)

 

Operating Cost

  • Assume 3 employees at $15 per hour - $90,000
  • Benefits and payroll taxes at 30% - $30,000
  • Total wages and benefits - $120,000
  • Overhead including depreciation, knives, sharpening, administration, insurance, real estate taxes, marketing freight, etc. at 200% of wages - $240,000

Total Operating Cost is $360,000

 

Gross Profit is $594,520 | Pay-Back Ratio is 2.5 Years

 

This is a cost estimate actual numbers will vary. Includes all computer controlled system for maximum efficiency. Custom machine set-ups are easily made to meet your production requirements.

Note: All figures in US Dollars, prices are subject to change without notice