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Waste Tire Situations and Markets in California. Denise Kennedy, DK Enterprises CIWMB Waste Tire Forum Sacramento, California – March 9, 2006.

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Waste Tire Situations and Markets in California

Denise Kennedy, DK Enterprises

CIWMB Waste Tire Forum

Sacramento, California – March 9, 2006


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Tire and Rubber Recycling Advisory Council (TRRAC) andthe Tire Industry Association (TIA)

  • Working group of recycling professionals

    • marketing, processing, collection, crumb rubber and

      manufacturing

    • one government liaison and advisor to TRRAC/TIA

  • Represent 5000 members in the Tire Industry Association

    • tire dealers and retreaders

    • commercial and retail markets

    • recyclers and suppliers

  • TIA’s history of services include government representation; training, education and certification; educational seminars and workshops


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Tire and Rubber Recycling Advisory Council (TRRAC)

  • Mission: Ensure long term viability of tire and rubber recycling worldwide, while pursuing economic and environmental benefits

  • Goals: To address the unique needs of the rubber recycling segment of the international tire industry and

    • Promote the reuse and recovery of tires and tire derived materials

    • Increase marketability of rubber products and applications

    • Promote industry’s legislative, judicial and regulatory issues

    • Provide educational, training, and networking opportunities


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Tire and Rubber Recycling Advisory Council – Representatives

  • Charles AstafanColumbus McKinnonFlorida

  • Doug BarrBarr Formulated ProductsPennsylvania

  • David ForresterTires Inc. of FloridaFlorida

  • Dick GustLakin Environmental IndustriesIllinois

  • Denise KennedyDK EnterprisesSacramento

  • Allan LassiterVirginia DEQVirginia

  • Monte NiemiFirst State Tire DisposalMinnesota

  • Tom SecorDurable CorporateOhio

  • Mary SikoraRecycling ResearchVirginia


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Marketplace – March 2006

RB Rubber Products

NW Rubber (Canada)

TD&R

WRW

WTP

Utah Tire Recyclers

WTP

TRI-C

WRW

Golden Scrap Tire

Shamrock

West Coast Rubber

Socal/NorCal Break

GreenMan

BAS

USMX

Lakin

McClanahan

TDF

CRM

CB Tyres

CRM


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California Statistics

US Census Bureau No. of Generators Haulers

2004 Population Counties W/ TPID’s W/Permits

Southern 21,378,000 10 5,950 799

Northern 14,425,800 46 6,250 387

Total CA 35,803,800 56 12,200 1,186


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Waste Tire Uses


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Canvassing Barriers in California

1

  • Different dynamics between northern and southern California

  • Geographic proximity does not mean tire and product availability

  • Shortage of facilities in southern California that have equipment and capacity to handle the quantity of tires that currently go to the landfills


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Canvassing Barriers in California

2

  • Tire processors compete with facilities and landfills that charge low tipping fees

  • Technology and markets must be supported by supply of tires

  • Subsidies by other states and countries influence collection, product and disposal


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Canvassing Barriers in California

3

  • Generators, facilities, and registered and unregistered haulers of scrap and used tires that bypass the regulated system impact pricing and market share

  • Overregulation penalizes the businesses that abide by regulation

  • Enforcement activity of the unregulated players is limited


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Canvassing Barriers in California

4

  • Difficult for many of the businesses to balance tire flow, seasonality, markets, and money

  • Insufficient and sustainable markets require overcoming market barriers


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Canvassing Barriers in California

5

  • Research and development may be cost prohibitive

  • Education, advertising and marketing campaigns may not be cost effective

  • The cost of processing, manufacturing, equipment, land, and facility expansion capabilities impact decision to build business


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Canvassing Barriers in California

6

  • Lack of industry standardizations impacts ability to expand technology and market development

    • Definitions and language

    • Industry weights and measurements (being prepared by the RMA & RCC)

    • Material Survey Data Sheet (MSDS)

    • Testing Certification


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7

Canvassing Barriers in California

  • Interstate transport is market driven and cannot be controlled or regulated by state or local government

  • Impact of tires and feedstock being imported and exported can effect the balance of markets

  • Industry wants confirmation of authenticity of origination using California tires in CIWMB grant process


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Canvassing Barriers in California

8

  • Rubberized Asphalt Concrete growth is limited by understanding, education, and dollars

  • Board to review the importance TDF plays in diverting 20% of the tire flow in California and impact if divert tires away from facilities

  • Storage requirements for long term civil engineering applications projects using TDA are not always feasible


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Canvassing Barriers in California

9

  • Business Issues:

    • Workman’s compensation

    • Other insurance costs

    • High energy costs

    • Low-cost overseas rivals

    • RCC and EPA – will these programs help or hinder growth in tire recycling

    • Air quality

    • Transportation costs


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California Waste Tire Activity

1

  • Grants will influence amount of income to processor, manufacturer and/or supplier

  • Focus on expanding existing ground rubber markets

  • Focus on developing civil engineering projects

  • Support TDF markets as they will continue to grow on their own


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California Waste Tire Activity

2

  • Place more emphasis on research and development

  • Grant selection options in Five Year Plan

  • Utilize government programs to promote recycled materials including updating web pages


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California Waste Tire Activity

3

  • Companies buying other businesses

  • Jump start businesses with BAP

  • Provide business development, technical assistance, marketing assistance and product testing and certification


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California Waste Tire Activity

4

  • Utilize resources of the RMDZ

    • Provide technical assistance

    • Assist with marketing to state agencies

    • Promote recycled content

    • Assist with site location

    • Link businesses with public agencies

  • Utilize expertise of the RCC


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Contact Information

Denise Kennedy

DK Enterprises

3323 Watt Avenue, Suite 298

Sacramento, CA 95821

PH: (916) 480-0443

FX: (916) 480-0386

MB: (916) 804-0931

[email protected]

www.DKEbusinesses.com


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