Rubber Technology International (fka RTEK)

[KauaiPI]

Tim~Right track but "fuzzy" math lol

33 million waste tires every year
20lbs per tire
66 million lbs crumb
$.15 per pound
$9.9 million potential revenue for Cali tires
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Typical Composition by Weight (RB#1161/ldsr050601)

This lists the major classes of materials used to manufacture tires by the percentage of the total weight of the finished tire that each material class represents.
Passenger Tire
Natural rubber 14 %
Synthetic rubber 27%
Carbon black 28%
Steel 14 - 15%
Fabric, fillers, accelerators,antiozonants, etc. 16 - 17%
Average weight: New 25 lbs, Scrap 20 lbs.


IF the composition is accurate, then taking the average of the non-crumb available items (Steel and Fabric, fillers, accelerators,antiozonants) or about 30% - 32% of the average "scrap" tire (20#) would change your numbers.

A 20# tire provides roughly 13.8# to contribute to crumb if 100% free of steel and fillers.

Of course, with the Firestone tires in the picture (New Tires equal 25 lbs) that might increase to about 17.25# (both figures are using an average of 31% non useable materials)

If, 95% scrap tires and 5% NEW tires then you would get to somewhere in the area of 1.65M tires (new) and 31.35M scrap tires (33M total) or

28.46M# for NEW tires (1.65M tires -estimated- times 17.25#s)

and

540.78M# for scrap tires (31.35M tires -estimated- times 13.8#s)

for a total of 569.2475M#s to contribute to crumb revenues OR

(if using your figure of $ .15/# x 569,247,500#)

$85,387,125 in possible total revenues!

...no wonder many have been saying that this business is big enough for multiple players (IMO) and this is JUST California.

RTEK is sure in the right place at the right time! They would only have to secure 10% of that revenue to get to $8.5M in revenues and they have stated they plan on being a MAJOR player in this field!

Note; California is only using a portion of the current 70% rate of recycled tires in the current crumb rubber applications. The *projected* $85M would be based on every tire being recycled and used for rubberized asphalt. Also, 5% for NEW tires is HIGH. AND we were assuming that the rate of $ .15/tire for that crumb is valid. I think it is less and as competition increases, this may be even less in the future BUT a SIZEABLE market for RTEK to participate in and IMO much better than your earlier projections of; "$9.9 million potential revenue for Cali tires"

Or is my math AND logic fuzzy? lol

Thanks for posting that article and stimulating the thought processes...

continued BEST to you
kp