The Australian Government’s push for end-of-life tyre recycling, particularly through the use of crumb rubber in road construction, has been gaining momentum. With Western Australia and Queensland continuing to grow rapidly but key markets like Victoria falling away, challenges remain in expanding the use of crumb rubber, especially in New South Wales and South Australia. However, partnerships like that between Tyrecycle and Alcoa Australia are helping pave the way for the recycling of OTR tyres, creating new opportunities.

The Australian Government’s endeavour for recycling end-of-life (ELT) tyres has been lauded by industry experts in many mature markets. Since December 2021, Australia has prohibited the export of whole baled tyres, except for specific casings and retreads. The Australian Government emphasises a circular economy approach, which includes incentives for local manufacturing by procuring tyre-derived materials such as crumb rubber for asphalt and other civil applications. The Western Australian Government has used over 3,000 tonnes of crumb rubber for road projects in a single year.

However, challenges remain with the recycling of off-the-road (OTR) tyres, often disposed of at mining sites. Nonetheless, the proactive nature of the government, especially in Western Australia, has paved the way for OTR tyre recycling, with recyclers forming partnerships with mining companies to ensure a steady stream of supply.

One such collaboration is between Tyrecycle, the recycling arm of ResourceCo, and Alcoa Australia. Tyrecycle’s state-of-the-art recycling facility in East Rockingham, 40 kilometres south of Perth, has already welcomed its first load of used OTR tyres from Alcoa, which is a bauxite mining company.

Speaking to Tyre Trends on the current state of waste OTR tyres, Tyrecycle Chief Executive Officer Jim Fairweather stated, “Currently, an estimated 130,000 tonnes of OTR tyres are discarded annually; 50,000 tonnes in The Pilbara alone. Tyrecycle is processing about 15,000 tonnes per year and aims to expand its footprint into key mining regions like the Hunter Valley, Bowen Basin and Pilbara. These areas are pivotal to Australia’s coal and iron ore mining industries, presenting significant opportunities for waste management and resource recovery.”

He added, “Mining operators often choose the cost-effective route of burying waste tyres on-site, which hinders recycling efforts. While some companies recognise the importance of responsible waste management, regulatory enforcement is needed to make recycling a standard practice. Proactive companies in the mining sector are stepping up, recognising the reputational and environmental risks associated with poor waste management. However, broader adoption is hampered by minimal regulatory mandates.”

COLLABORATIVE MEASURES

The collaboration between Tyrecycle and Alcoa was driven by a mutual commitment to sustainable practices and innovation in waste management. For the recycler, it represented a strategic move to expand its capacity to process OTR tyres and, in the future, conveyor belts, which are significant waste streams in the mining sector. This partnership evolved over five years of discussions, trials and project planning.

Equipped with a larger primary shredder capable of processing substantial pieces of OTR tyres, the plant in East Rockingham enabled the recycler to manage Alcoa’s tyre waste effectively. Prior trials at the recycler’s New South Wales facility ensured the material could be processed successfully, laying the groundwork for this full-scale collaboration.

“Alcoa provides full OTR tyres, which are pre-processed using excavators to reduce size. These pieces are then fed into our fully automated plant, where they undergo a comprehensive process to produce crumb rubber as fine as 700 microns. The crumb rubber is repurposed into road construction material within Western Australia, creating a closed-loop system. The project aligns with the Western Australian Government’s push for the integration of rubber crumb in road infrastructure, ensuring sustainable outcomes,” said Fairweather.

He mentioned that the company has initiated partnerships with major mining operators, securing long-term offtake agreements to convert OTR tyres into value-added products for resale. While agreements are being finalised with several top-tier miners, the company aims to secure additional multi-year contracts, further cementing its position in the growing circular economy of Australia’s resource sector.

PRODUCTION

The company operates nine facilities culminating in a current processing volume of 180,000 tonnes annually with 30 percent spare capacity, allowing for up to 250,000 tonnes per year. Crumb rubber production stands at approximately 25,000 tonnes annually.

While mining tyres constitute a smaller portion of the company’s operations, the bulk of recycling comes from collecting approximately 20 million tyres annually from retail outlets across Australia, including regions such as Far North Queensland, Tasmania, Perth and the Pilbara. These include PCR, TBR, four-wheel-drive tyres, forklift tyres and even bicycle tyres. Roughly 80,000 tyres are collected daily.

Alcoa’s waste OTR tyres are entirely processed into crumb rubber for the Western Australian market. Beyond this, crumb rubber from other ELTs is sold into sectors such as the steel industry, adhesives manufacturing, playground surfacing, walking trails and civil applications. While these sectors are important, they don’t match the volumes required for road construction in Australia.

Additionally, tyre derived fuel (TDF) is manufactured in various sizes to cater to different customer needs. For example, 1.5-inch steel-free chips are used in power boilers, while 2-inch, 3-inch, 4-inch and 6-inch chips are utilised in cement kilns, both locally and for export to countries like Japan.

Offshore customers further process these materials into products like micronised rubber powder. The company also supplies feedstock to large tyre recycling businesses in India and Korea.

Commenting on whether Alcoa takes any of the tyre-derived product under the agreement, Fairweather informed, “Alcoa currently does not take any products, but there are opportunities in development, particularly in the smelting sector, where materials could be used as reductants.”

CONSUMPTION

While crumb rubber production serves local markets exclusively, TDF and steel exports continue to play a vital role in the company’s global strategy with a focus on improving quality and expanding domestic utilisation.

“The crumb rubber produced is fully consumed within Australia, reflecting a strong domestic demand for applications such as road construction. While 5,000 tonnes of TDF is consumed domestically in New South Wales, the vast majority – over 100,000 tonnes – is exported. That said, domestic consumption of TDF is poised to increase significantly with plans to redirect approximately 100,000 tonnes for use within Australia as part of ongoing pipeline development projects,” said the executive.

“Additionally, steel extracted from the tyres is traded globally as scrap. With the installation of steel-cleaning systems across all facilities, we now export steel with a much lower rubber contamination rate, reduced from 20 percent to 1-2 percent. This enhancement improves the value of the scrap and allows for more competitive pricing at the collection stage,” he added.

Commenting on the use of crumb rubber for roads, he said, “Road construction remains the largest consumer of crumb rubber in Australia, outpacing other uses. The Western Australian Government’s mandate to use crumb rubber in roads has been evolving over the past three years. Three years ago, there was virtually no sale of crumb rubber for road construction in Western Australia. However, today, Western Australia has become the second-largest market for crumb rubber used in roads across the country, despite having only 10–15 percent of Australia’s population.”

“The Main Roads Western Australia agency played a pivotal role by mandating crumb rubber in road specifications, significantly increasing demand. Additionally, the Western Australian Government supported this initiative by funding the creation of tyre processing infrastructure. This dual approach that includes stimulating private sector investment while ensuring procurement for recycled materials has been key to making these investments viable,” he added.

QUALITY CONTROL

Fairweather quipped that being one of the largest recyclers in the land has its perks when it comes to quality controls. With an expansive collection network that draws in tyres that are not only manufactured at home but imported from different regions ensures understanding of different chemical compositions.

As for ensuring the quality of crumb rubber, especially for road construction, he said, “We implement rigorous quality control procedures from testing the crumb rubber three times a day across all facilities to ensure that it is consistent and free of impurities. We take specific measures to ensure even sample collection and use advanced software to track and grade the rubber’s size distribution. Chemical tests are also performed periodically to maintain the integrity of the crumb rubber. Given the varied origins of the tyres, the company’s large scale allows it to homogenise these variations, ensuring a high-quality product.”

He added that quality is paramount because contaminants like metal can damage equipment used in road construction and asphalt applications. The company maintains a metal contamination level of less than 0.01 percent, which is crucial for the reliability and functionality of the crumb rubber in its applications.

Regarding the recycling of mining tyres compared to passenger and TBR tyres, he noted that there is a significant difference in the process. “Mining tyres are much larger and require different handling equipment and primary processing. These tyres need to be pre-processed to remove the bead before being reduced to a manageable size. In contrast, passenger and TBR tyres undergo a more standard shredding process, which then leads to various mechanical resizing depending on the final product,” said the executive.

The TDF also goes through a rigorous quality control process.

MARKET FORCES

The largest market for crumb rubber in Australia has historically been Victoria, where it has been widely used in road construction. However, in recent times, Victoria’s market has faced challenges, largely due to budgetary pressures that have led to delays or cancellations of road projects. Despite this, it has remained the leader in crumb rubber consumption for roads.

Western Australia and Queensland are closely matched, coming in second for crumb rubber usage. On the other hand, New South Wales (NSW) and South Australia are behind in their adoption of crumb rubber in road construction, with NSW, particularly Sydney, significantly lagging. This presents an opportunity for growth in those regions, as they could start to increase their usage to match the other mainland states.

Tasmania, due to its smaller population and limited road construction, uses less crumb rubber, but this is proportional to the region’s size and needs.

“The collaboration with Alcoa and the potential for them to purchase products in the future is still under discussion. Both parties are open to exploring further development of this partnership. Alcoa has proven to be a strong partner, and there are good opportunities for continued collaboration, especially in creating a circular process that benefits both Alcoa and the broader market,” averred Fairweather.

The growth strategy for the company focuses on expanding its production capabilities and increasing the value-added nature of its products. This includes ongoing investment in plant infrastructure and a focus on increasing market share, particularly in tyre collection volumes.

The company sees significant potential in the OTR sector, which is currently untapped, and plans to continue developing new products and processes to offer higher-value products rather than just TDF.

TDF, however, remains an essential part of the business. It plays a crucial role in tyre recycling by reducing landfill waste and offering a more environmentally friendly alternative to fossil fuels.

Trials on imported tyres were also successfully completed with full-scale processing set to begin imminently. Tyrecycle also plans to establish processing facilities in Central Queensland and Western New South Wales, reducing logistical barriers and enhancing service capabilities.

VIPO a.s., a Slovakian manufacturer of bead winding and apexing machinery for tyre production, has established a wholly owned subsidiary in India to capitalise on growing demand in one of the world's largest automotive markets.

VIPO INDIA PRIVATE LIMITED commences operations on  1 October from New Delhi, providing technical support, spare parts production, and customer service to tyre manufacturers across the country, the Partizánske-based company said in a statement.

The move represents a significant expansion for the mid-sized engineering firm, which supplies automation equipment to tyre makers globally. India's tyre industry has expanded rapidly in recent years, driven by robust vehicle sales and infrastructure development.

"The launch of VIPO INDIA PRIVATE LIMITED is a milestone in our global expansion," said Peter Duchovic, chief executive of VIPO a.s. "India represents not only one of the fastest-growing tyre and automotive markets but also a hub of innovation."

The subsidiary will offer locally produced components for high-wear parts and provide digital services including artificial intelligence-driven condition monitoring and augmented reality-based training programmes, the company said.

VIPO specialises in bead winding lines - equipment used to produce the steel wire bundles that anchor tyres to wheel rims. The company stated that its systems incorporate robotics and automation to reduce energy consumption and enhance production efficiency.

"With our New Delhi subsidiary, we will be closer to our customers — listening carefully to their requirements and integrating their needs into the development of new devices and services," Duchovic said.

The firm has committed to the Science Based Targets initiative, a framework for corporate emissions reductions aligned with climate science, according to the statement.

French group targets fast-growing SUV segment with INR 6.86 billion

Michelin has produced its first premium passenger car tyre in India, marking a strategic shift for the French manufacturer’s Chennai facility, which previously focused exclusively on commercial vehicle production.

The plant unveiled the made-in-India passenger tyres on Tuesday, with commercial availability planned for the first half of 2026. The company will target the premium segment with products ranging from 16 to 22 inches, including its Primacy 5 range as the initial offering.

Michelin will manufacture its LTX Trail ST, Pilot Sport 4 SUV, Pilot Sport 5, and Primacy 5 ranges in India.

The move follows Michelin’s September 2024 announcement of an INR5.64 billion investment in passenger car tyre manufacturing. The group has since added over INR 1 billion for subsequent phases, bringing total investment to INR 6.86 billion, supplementing the INR 28 billion already deployed at the Chennai site.

India’s passenger car market, valued at USD 18.13 billion in 2024, is projected to reach USD 33.85 billion by 2030, representing a compound annual growth rate of approximately 11 percent. Sport utility vehicles now account for more than half the market, a trend that Michelin is positioning itself to capitalise on.

“Better infrastructure, rising disposable income, changing consumer preference of the growing Indian middle class’s desire for more versatile, spacious, and feature-rich vehicles are fuelling growth and premiumisation of the car park,” the company said in a statement.

Michelin scaled production in 12 months from announcement to first output, including 50,000 hours of employee training at various Michelin factories overseas. The new passenger car line spans 22,000 square metres and incorporates what the company describes as “Industry 5.0” automation.

The facility requires only 200 employees, compared to the industry standard of 500 for comparable capacity, according to Michelin. The Chennai plant already produces 38 tyre variants for trucks, buses and defence applications, with all business-to-business products fitted with radio-frequency identification tags.

Michelin has expanded its retail presence to 75 standalone service centres across India and opened what it terms an “experience store” in Nashik. The company plans to expand this network as production increases.

The Chennai facility operates with a zero carbon footprint, zero liquid discharge, and complete recycling, sourcing 80 per cent of its water from rainwater harvesting while drawing 45 per cent of its energy from renewable sources.

The company, which employs 129,800 people across 175 countries, positions itself as a “world-leading manufacturer of life-changing composites” with operations spanning mobility, construction, aeronautics and healthcare sectors.

In a strategic move to bolster its position in the United States, Balkrishna Industries Ltd. (BKT Tires) has announced two key executive appointments for its American operations. The company has named Jay Dhillon as the President of BKT USA and appointed Minoo Mehta as a Senior Advisor.

With more than two decades of international experience in the tyre sector, Dhillon will be responsible for leading the Ohio-based subsidiary. His mandate is to drive long-term growth by expanding into new and existing markets, aligning all business units with strategic objectives and cultivating profitable partnerships to ensure sustainable industry leadership.

Mehta, taking charge from 1 October 2025, will focus specifically on the truck and bus radial tyre segment, providing expertise to support the development and launch of new product lines. This dual appointment is designed to strengthen the company's overall strategy and market presence across its key off-highway and radial tyre businesses in the US.

Dhillon said, “I am excited to join the BKT team and contribute to its forward-looking growth. With over 20 years in the tyre industry and an engineering background, my goal is to lead the team and drive success during this dynamic time while upholding the company’s commitment to quality, innovation and excellence.”

Mumbai-based Balkrishna Industries (BKT), a major player in the global Off-Highway Tyre (OHT) market, is making a significant move to expand its footprint in the on-road vehicle tyre segment with the inauguration of a new ‘Vehicle Dynamics & Testing’ (VD&T) base at the National Automotive Test Tracks (NATRAX) facility in Indore.

The new base leverages India's premier automotive testing grounds – Asia's second-largest and longest – to enhance BKT’s product development, particularly across the two-wheeler, passenger car radial (PCR) and commercial vehicle radial segments.

BKT's strategic decision to establish the VD&T base, inaugurated by Satish Sharma, Sr President & Director - Business Development and Strategy, marks a major step in the company's commitment to enter new segments.

By tapping into NATRAX's state-of-the-art infrastructure, BKT aims to accelerate new product development, enhance performance & reliability and address evolving needs by utilising real-world testing scenarios to cater to the specific demands of Indian and international consumers.

The facility is equipped with advanced machinery and an expert R&D team, providing a critical hub for high-quality, innovative tyre development across all mobility segments.

Access to NATRAX will enable BKT to test its tyres across a comprehensive range of real-world driving conditions and parameters, including – ride & handling, comfort, braking performance, durability and off-road terrain simulation.

These robust testing capabilities are crucial for meeting the requirements of both Original Equipment Manufacturers (OEMs) and the replacement market. The goal is to ensure that every tyre offers world-class quality and gives everyday consumers confidence in its performance.

By investing in dedicated R&D at NATRAX, BKT is not only reinforcing its position in the global tyre industry but is also signalling its serious intent to become a formidable competitor in the rapidly growing on-road vehicle tyre market.

Satish Sharma, said, “At BKT, we are leveraging our decades of expertise in off-highway tyres as we expand into on-road vehicle segment. Our entry into the consumer space is guided by a clear commitment: developing tyres that users can trust for safety, comfort, mileage and reliability on every journey. The establishment of dedicated VD&T base at NATRAX marks a pivotal step in our journey to deliver world-class tyres across segments. This facility empowers us to simulate real-world conditions and rigorously test our products for performance, safety and durability. By addressing key consumer pain point, be it ride comfort, braking efficiency, or terrain adaptability; we are committed to engineering solutions that truly elevate the driving experience.”