Titan gets into tyre reclamation business

Titan International’s Titan Mining Services business has launched an operation to reclaim raw materials from mining tyres. Titan Tire Reclamation Corp. (TTRC) will work together with joint-venture company Green Carbon, using the latter’s pyrolysis process. Titan says that when a mining tyre and belting is placed in a reactor and treated using the process, a 59R63 super giant tyre yields 450 to 500 gallons (2,045 to 22,73 litres) of oil, approximately 4,000 pounds (1,814 kg) of carbon black and approximately one ton (907 kg) of steel.

“Depending on the country TTRC is operating in, the company will receive carbon credits,” stated Titan International chairman and CEO, Maurice M. Taylor. “In addition to the return on oil, carbon black and steel, TTRC will be paid a fee. The first system is planned to go to the oil sands in Alberta, Canada, and then Elk River Valley of B.C.Canada. We are planning units for Elko, Nevada; Gillett, Wyoming; Chile and Australia.  Titan has plans to use the reclaimed carbon black in various tyre products, which should give Titan a green carbon certificate for tyres we produce, even the reclaimed steel counts. There’s no question Titan Mining Services will be growing worldwide in the next few years. As TMS expands, each location will have other equity owners operating each facility.

“I know the first question is what would revenue be?” the business-minded Titan boss continued. “The above gross revenue at today’s prices should be US$250 million for the sites mentioned above. The EBITDA should be between $75 and $100 million gross. Yes, the margins are better turning the tyres back into oil, carbon black and steel. Titan has been working on this for the past three years and we will have our first reactor running in June/July 2014.”