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.

Bridgestone Corporation (Bridgestone) has been selected once again to continue as a constituent of three internationally renowned environmental, social and governance (ESG) indexes: the MSCI ESG Leaders Indexes, the FTSE4Good Index Series and the Dow Jones Sustainability World Index (DJSI World).

Bridgestone has been a part of the MSCI ESG Leaders Indexes for two years in a row since 2023, the DJSI World for three years in a row since 2022 and the FTSE4Good Index Series for seven years in a row from 2018. Bridgestone's specific Mid Term Business Plan (2024-2026) has been steadily implemented, putting sustainability at the centre of its operations. The company's 2020 vision and Mid-Long Term Business Strategy served as the foundation for the plan.

According to the company statement, “Setting forth the vision of ‘Toward 2050, Bridgestone continues to provide social value and customer value as a sustainable solutions company’, Bridgestone links its business to the realisation of carbon neutrality, a circular economy and nature positivity across the entire value chain. From the ‘produce and sell’ phase and the ‘use’ of its products through to their ‘renewal’ to raw materials, Bridgestone aims to build a foundation for creating sustainability value.”

The following initiatives have contributed to Bridgestone's inclusion in these indexes:

• Contributing to a circular economy and attaining carbon neutrality by using ENLITEN technology to make tyres from recycled and renewable resources, using BCMA and switching to ‘Green & Smart’ manufacturing at Bridgestone locations to increase resource productivity and energy efficiency.
• Encouragement of nature positivity through initiatives for the sustainable use of water resources and natural rubber that are closely related to the commercial operations of the firm, including strengthening assistance for natural rubber smallholders.
• Strengthening of a thorough structure and procedure for human rights due diligence that aims to identify, mitigate, avoid and disclose human rights concerns.
• Visualisation and disclosure of the impact of social contribution actions that are in line with the global goals.

German automotive company and tyre major Continental has been added another feather to its cap with bagging the ‘Tire Manufacturer of the Year’ at this year’s Tire Technology International Awards for Innovation and Excellence at this year’s Tire Technology Expo.

With this, Continental becomes the only tyre maker to have won two concurrent awards – Tire Manufacturer of the Year and Environmental Achievement of the Year – Manufacturing. The company’s Lousado facility in Portugal was also recognised for manufacturing tyres CO2-neutrally since last year.

Edwin Goudswaard, Head of Research & Development, Continental Tires, said, "We are especially proud to be the only manufacturer to be honoured twice at the Tire Technology Awards in an extremely competitive field. Both awards highlight our strong commitment to sustainable tire development and manufacturing. In such a highly competitive market, this success demonstrates our innovative prowess and our ability to actively shape the future of the industry."

Interestingly, this also marks it the fourth time that the German company has bagged the Tire Manufacturer of the Year award. The awards took into consideration tyre makers globally and were evaluated by a jury of 27 independent industry experts.

Going forward, Continental has outlined its ambition to switch all of its tyre plants to fully carbon-neutral production processes by 2040 at the latest.

Hankook Tire & Technology (Hankook Tire) has appointed Jongseon Ahn and Sanghoon Lee as Executive Directors and new Co-CEOs, following a resolution passed at the Annual General Meeting and Board of Directors meeting held on 26 March.

Ahn will be in charge of Hankook Tire's global innovation, R&D, procurement, production and quality, while Lee will be in charge of global sales and marketing initiatives to strengthen the premium positioning of the company's unified global brand, Hankook, as well as the supply of original equipment (OE) tyres for new vehicles. In addition to the leadership nominations, shareholders approved all eight agenda items at the Annual General Meeting, including the approval of the consolidated financial accounts, partial revisions to the Articles of Incorporation and director appointments.

Ahn has extensive leadership expertise and a proven track record of advancing technology innovation in the operational holding firm, Hankook & Company. He oversaw general management and spearheaded innovative initiatives in 2021 while serving as COO of Hankook & Company and Head of ES (Energy Solution) Business Headquarters. He became the CEO in 2022 and oversaw the company's expansion of premium Absorbent Glass Mat (AGM) battery sales into important international markets, which greatly increased profitability and strengthened the company's platform for long-term success.

Lee's vast worldwide leadership experience serves as the foundation for his profound understanding of marketing and global sales strategy. He has held important regional leadership positions in China and Europe since 2018, during which time he has played a crucial role in bolstering the company's premium brand positioning internationally and continuously promoting creative business performance, both of which have greatly increased revenue. At the conclusion of last year, he was nominated as Hankook Tire's Co-CEO due to his success and leadership.

Sri Lanka-based speciality tyre manufacturer GRI (Global Rubber Industries) has won the prestigious Material Handling Industry (MHI) Innovation Award for Best Innovation in Sustainability at ProMat 2025, held in Chicago, USA. The company’s premium plus ULTIMATE GREEN XT tyre has been honoured as the world’s most sustainable material handling tyre made with 93.5 percent sustainable materials.

This solid material handling tyre, which was designed and produced at GRI's state-of-the-art production facilities in Sri Lanka, combines energy-efficient production methods, environmentally friendly raw materials and outstanding performance to lessen its impact on the environment and increase productivity for companies all over the world. The award follows a thorough evaluation procedure in which the most innovative developments influencing the future of material handling were evaluated by a prestigious panel of industry executives, technical specialists and sustainability advocates. In addition to being a success for GRI, this result demonstrates Sri Lanka's increasing influence in the global manufacturing sector and reaffirms the nation's capacity for high-quality, sustainable production.

Prabhash Subasinghe, Managing Director, GRI, said, “This award is not just a recognition for GRI – it is a moment of pride for Sri Lanka, showcasing our ability to lead in sustainable industrial solutions. The ULTIMATE GREEN XT is a Sri Lankan innovation making a difference on the global stage, reinforcing our belief that sustainability is not an option – it is a responsibility. At GRI, we always think of the next generation and strive to grow for generations to come. We dedicate this achievement to the passionate and hardworking people of Sri Lanka, whose expertise and dedication made this possible.”