SATRP Service 2

Information on the Waste Tyre Project in South Africa

The Proposed Tyre Collection Process.
All the tyre stakeholders in SA including the Manufacturers, Importers, Retreaders, Dealer principals, TDAFA, and other interested parties (NAAMSA, DEAT, DTI, DWAF, NUMSA, metropolitan councils etc) have been involved in the planning of the process for the collection of the waste tyres and their delivery to the waste tyre users. Extensive press and radio coverage has been done.

The proposed process is as follows:

Provincial collection agency
Provincial collection agencies will be contracted by the Section 21 Company to arrange for the collection and transportation of the waste tyres from registered tyre Dealers and Retreaders to the waste tyre processors.
No money will be paid for scrap tyres collected.

The Dealers and Retreaders will be required to mutilate all waste tyres, making them unsuitable to be fitted to a vehicle, before consigning them to a registered waste tyre collector.

Environmental "Compulsory Charge"
A “compulsory charge” will be instituted by the tyre Manufacturers, Retreaders and Importers to cover the cost of the tyre collection process.

The Section 21 Company will calculate the amount required to operate the process and translate this to a cost per tyre. The Manufacturers and Importers will add this charge as a separate line item on the invoice for new tyres to the Dealer. No charge will be made on retreaded tyres. The tyre Dealer will pass the charge onto the consumer at the same rate, without adding a profit margin.

VAT is payable on the charge. The charge will be widely publicised and all Suppliers and Dealers will be required to adhere to it. The charge will be instituted a few months before the actual collections start in order to build up a fund for the collection process.

An audit company will be appointed to verify the financials of the stakeholders. Annual reports will be made to the Department of Environmental Affairs and Tourism.

(Used Tyres) Casings imported for retreading will be subject to a charge, payable by the importer. This is because these casings add to the waste stockpile accruing in SA. This fee will be absorbed in the cost of retreading the imported casing and in the selling price to the end-user.

Discussions are being held with vehicle and equipment manufacturers, Government Tender Board and other bulk tyre consumers that buy directly from the tyre suppliers, to recover an Environmental charge and link it into the above processes.

This process is in line with best practice and environmental concepts for sustainable development throughout the world.

Legislation
A Waste Tyre Regulation under the auspices of the Department of Environmental Affairs & Tourism is being formulated to empower the tyre industry plan. DEA&T published the Regulation for public comment on 01 April 2008.

Collection of Waste Tyres

	The collection of close to 95,000 tons of waste tyres from every town and city throughout SA will require a disciplined and well-regulated collection process.
	Large and specialized transport vehicles and equipment will be needed,
	Collectors must be able to conform to the storage requirements as depicted in the Waste Tyre Regulation
	It is proposed that the collection process be contracted out to logistics companies with an existing infrastructure.
	It is foreseen that additional jobs will be created within the collection infrastructure.

Stockpiles - The Collector will be required to make provision for stockpiling of waste tyres.

Ability of the recyclers to absorb the scrap collected

	Provision has been made to commit 50% of the collections to recyclers and 50% to Tyre Derived Fuel (TDF) users in the initial stage of the process.
	This allocation will change once the market is established and experience is gained.
	Waste tyres will only be supplied to waste tyre end users complying with DEA&T requirements.

Benefits
Numerous benefits, with far reaching effects, will be derived with the introduction of this project.
The obvious benefits are:

1.        Creating a new Industry
A new industry of collecting and recycling waste rubber will be established. At present, there are approximately 12 plants in the country using waste tyres. Only one produces rubber crumb, with one other using the crumb in applications. The others are smaller entrepreneurs making mats, sandals, etc.
New investors are planning an additional 5 to 20 plants once the project is established.

Cement kilns and the like, once converted to accept waste rubber as part of their fuel source, will remain a constant consumer of waste tyres.

All waste tyre users will have to comply with national environmental standards as per DEA&T requirements.

2.        Exports
Rubber crumb and products made from recycled rubber could be exported in the future. This new business will add to the economy of SA and grow as the processes improve and new markets are developed. The SA Balance of Payments will benefit accordingly. There are approximately 250 products that can be made from recycled rubber. Examples are: rubber matting, shoes, tank linings, rubber moldings, road tar additions etc.

3.        Pollution reduction
    Four major pollution problems will be eliminated once the collection process is in place:

Water retention and mosquitoes - Tyres form an ideal receptacle for water, which remains there for long periods, becoming ideal breeding grounds for insects including mosquitoes. Different strains of malaria are spreading throughout the country. Spraying these tyres is costly and ineffective.

Fire – A large stockpile of waste tyres forms a serious fire hazard and once burning, is virtually impossible to extinguish.

Smoke – Acrid smoke generated from tyres burnt, to recover the scrap steel content, causes respiratory problems, pollution of the air and surfaces and forms a hazard for aircraft landing at major airports and for road traffic. Waste tyre stockpiles – Unsightly stockpiles reduce the value of property.


4. Road Safety
DoT report that up to 53% of vehicle component failure accidents are caused by tyre failure. The use of second hand tyres is considered the biggest contributor. Owners of tyres discard them as being either worn or damaged. These are collected, patched or re-grooved and fitted by unscrupulous traders to vehicles often with fatal results. These tyres burst after short use and people are killed in the process. The root of this evil will be removed once the waste tyre collection starts.

More information can be obtained from
fax no. (011) 791-1310

info@rubbersa.com

Tyre Collections:-

Phase One

Passenger

Light Commercial

Heavy Commercial

Other Phases

Tractors

Earth moving

Mining

The implementation is dependent on successful legislation being promulgated. Collection should start approximately 9 - 12 months after promulgation. This is in order to give collectors and waste tyre processors enough time to set up their operations. Every 12 months an additional tyre category will be brought into the collection system.

Accreditation of possible users of waste (scrap) tyres in SA

The SA Tyre Industry is planning a waste tyre collection process for SA (Subject to: promulgation of a Waste Tyre Regulation by the Department of Environmental Affairs and Tourism).

All possible, present and future users of these waste tyres, such as waste tyre processors, etc. are requested to advise the SATRP Company as soon as possible of their expected waste tyre requirements.

This excludes tyres for retreading purposes.

Please contact us for a Registration Form.

_{(Project Leader SATRP Company, Section21
(not for gain)}