A Tire Recycling Plan

INTRODUCTION

Since 1985, 75 patents have been issued to recycle tires into oil, most fail within 3-4 years. This is a plan that overcomes all obstacles and creates a truly profitable tire recycling business.

DESCRIPTION OF SERVICE

• Having been on one of those failing teams, this category is where the problems start.

• You must see turning tires into oil as many revenue streams, not one.

• This tire recycling company will create multiple profit centers.

• Collection, repurposing, fuel, and products.

COMPANY HISTORY

• Participating on a team in 1985, oil was discovered in tires.

• A profit was never exploited from our find. We did perfect the art and understanding of what we were doing.

• During the last 25 years, the moment in time has finally arrived for us to take this knowledge to market.

• The politics of oil make this the perfect time.

CURRENT OPPORTUNITIES

• While most energy companies are disliked by the green movement, a recycling company can ride the wave.

• Political factions are driving the conservationists, not just market demand. We can sink, swim, or surf these forces.

• Working with these factors, we clean up a mess and make a profit on the way.

COMPANY ADVANTAGES

• High oil prices drive our products.• Unemployment brings in top hands.• Knowledge from the past avoids pitfalls.• Good shredders are available at reasonable

prices.• There is an explosion of recycled products from

tires.• Using our oil, the opportunity to move into the

electrical generation business presents more profit potential.

ENVIROMENTAL ANALYSIS

•Lab results prove what is in a recycled tire.•Decades of reports promote the use of tire derived fuels.•Some states mandate its use as rubberized asphalt.•It is now used in rubberized concrete.

CURRENT BUSINESS CONDITIONS

• High fuel prices make tire derived fuel possible.• Energy policy makes these products desirable.• Creating clean by-products increases the price.

COMPANY OPPORTUNITIES

• Looking into the face of possible hyper inflation, investment in a renewable green fuel offers a way to profit amidst chaos.

• A moratorium makes this product more viable and valuable.

COMPANY THREATS

• Bad political policy is always a threat.• Changing the basic components of the tire could

require some fine tuning.

COMPETITOR ANALYSIS

• Liberty Tire has broken through and is our biggest competitor.

• They produce multiple revenue streams:– Tire collections– Tire derived fuel (chips, not oil, a flaw)– Crumb rubber asphalt and feedstock– Rubber mulch

IDENTIFICATION

• We will identify with the conservation movement.• Community rallies will be held to round up tires,

it’s feedstock to us.• Our corporate purpose is to help cleanup.

COMPARISON

• Our company will enter the community with good will.

• Help cleaning up a large tire pile is gladly accepted.

• Communities are happy to reclaim the land.• We will try to acquire the land at a reduced rate.• This corporation will focus on creating multiple

overlapping revenue streams.

MARKET ANALYSIS

• Now is the perfect time to enter this industry.• All market forces, both demand and political are

in tune.• The masses are motivated for a solution.• A large company has paved the way and new

doors are open.

MARKET DEMAND

• Tires create multiple after market revenue streams.

• Collection, re-treading, re-purposing, fuel and steel are the main uses.

CUSTOMER PROFILE

• Steel mills and crumb rubber recyclers will utilize our feedstock.

• The crumb rubber can also be used as fuel to replace coal.

• Crumb rubber can be recycled into oil and carbon black to be used as a coal substitute.

• Rubber mulch is a very profitable arena.

TARGET MARKET

• We will focus on selling a clean steel and a 40-80 mesh crumb rubber.

• Rubber mulch could be the next product.• Oil, gas, and char can be captured in a second

phase.• This oil can be easily turned into diesel fuel.• Char is a product from making oil.

MARKETING STRATEGY

•Our plan is to use waste tires as a base to create as many as 12 possible revenue streams.•Collection, steel, and crumb rubber are the first three streams.

MakeElectricity

MakeProducts

FinanceHomes

BuildHomes

AcquireLand

House Diesel

ContractDiesel

SellOil

SellChar

SellRubber

SellSteel

Collect&

Shred Tires

LOCATION

• We need a state with a large pile of waste tires.• Good roads are a must.• Collection facility and shredding operations

would need to be as close as possible to this site.

• A nearby rail yard would be an asset.

Perfect Location Parameters

Right State Shipping Location of Buyers

Big City

Large Tire Pile

Good Roads

Rail Access

Barge Availability

Steel Mills

Rubber Manufactures

Kilns

PRICING POLICY

• Commodity pricing is in effect.• Cleanliness of product increases the price.• Eight cents a pound x four pounds per tire brings

in 32 cents in steel.• Ten cents a pound x sixteen pounds per tire will

generate $1.60 in crumb rubber.• As a minimum, we can expect $3 per tire including

the collection fee.

ADVERTISING

• This department will be turned into an outside sales team that will generate revenue instead of cost.

• The entire operation should be paid for by this department as a goal.

• Mobile collection sites can be established with satellite waste centers and containers.

• Tire collection rallies will be held in many cities.

DISTRIBUTION

• Product will be shipped by truck within 150 miles.• Rail or barge will carry anything farther.• We will deal directly with steel mills and recycling

manufactures.

SALES FORECAST

• We will use a formula as follows:• Tons per Hour X Product Sales = $1,000 per

hour at 80% uptime, 20 hours per day• 20 Thousand dollars per day• 600 Thousand dollars per month• 7 Million dollars per year

PRODUCTION CAPACITY

• To maintain a thousand dollar an hour output, we will produce four tons of rubber and a ton of steel.

• That is $800+ per hour of rubber.• Right at $200 an hour for the steel.

OPERATIONS

•Maximum production will require three crews of eight men to operate around the clock.•These men will build our eco friendly homes, as well as our thermal separator.

PHYSICAL FACILITY

• This operation is designed to operate completely mobile.

• There is nothing that can’t be moved quickly.• This system will be called a recycling rig.• A temporary roof will be built over the stationary

equipment.• We will operate in the open.• Containers will be used for offices.

DAILY OPERATIONS

• Three eight hour shifts will be necessary to maximize alertness and production.

• We will defeat down time by having duplicate equipment.

• The right projects and tools and you will have no down time.

• Men with multiple skills allow for a lot of operational movement.

• Our crew will do it’s own maintenance when possible.

PERSONNEL REQUIREMENTS

• Foreman• Electrician• Plumber• Carpenter• Welder• Three equipment operators• All eight men must be mechanically proficient.• Twenty four men total.

PRODUCTION SCHEDULING

• We will recycle twenty tons of steel per day along with eighty tons of rubber.

• The goal is to gross one hundred tons of material per day.

• Twenty hours of uptime at one thousand dollars per hour equals twenty thousand dollars per day.

SUPPLIERS

• Waste tire piles controlled by various states will be a recycling target.

• A profitable collection site will be required to fulfill our mission with new feedstock arriving on a daily basis.

• We will become a feedstock supplier for steel mills and rubber recycling manufactures of all types.

INVENTORY

• Our equipment must be located as near as possible to a multi-million strong waste tire pile.

• This pile is our base for starting.• All new inventory will come from local collections.

RECORD KEEPING

• States require meticulous manifests to account for all waste tires and we will follow up with our documents based on weight.

• A staff accountant will be required.

COST CONTROLS

• To make this mission successful, a profit must be made at every step.

• The process starts with a collection fee of one dollar.• We must generate a one thousand dollar per hour

gross with a maximum of forty percent cost during the recycling process.

• Corporate offices will be in a container on site.• The rent will not be expensive in this operation.• Eighty percent uptime will be maintained by having

some duplicate equipment.

MANAGEMENT PLAN

•A general manager will lead this operation with a sales associate, a general foreman, and an accountant.

ORGANIZATIONAL STRUCTURE

General Manager

Sales Manager General Foreman Accountant

KEY MANAGERS AND FUNCTIONS

• A sales manager will assist in sales and daily operations.

• Working with the government to acquire tire piles will be his main objective.

• A general foreman will manage the day shift. This man will lead the other foremen.

FINANCIAL SUMMARY

• We will need one and a half million dollars in equipment to start.

• One and a half million dollars will be required to operate the systems while picking up speed.

• Two million dollars will be needed to acquire land and feedstock.

• This is an investment of five million dollars.• Our goal will be to collect five million tires quickly at

one dollar each to cover all costs.

FINANCIAL DATA

•With a small investment, we can expect to generate millions of dollars per year.•Once production is at full speed we can move into one of many profitable areas.•Our goal is to develop between five and ten revenue streams.

HISTORY

• Having participated in the tire recycling business in its infant years, the 1980s, we have analyzed industry growth and pinpointed that now is the perfect time to operate in this venue.

MOST PROBABLE SCENARIO

• Our most probable case is, we work hard and uninterrupted while recycling one hundred million tires over the next decade.

• We recycle as many tires as we can, as fast as we can, for as long as we can.

• A move into the diesel business with our own product is a long term goal.

• Our land acquisitions give the company hard assets and real wealth.

WORST CASE SCENARIO

• The worst thing that might happen is the government ordering a halt to work, for some unknown reason such as a moratorium.

CrumbRubber

ThermalSeparator

12,656 BTU’s

Gas

Oil

Char

Electricity18,203 BTU’s

30 Cubic Feet

Green Electricity From Shredded Tires

One Fuel In and Three Fuels OutAll Generating Electricity

CONCLUSION

As you can see, this plan is more about making a profit, than getting oil out of a tire. There are many things you can do with a tire and fail to make any money. Taking the right path is more valuable than all of the by-products combined. Recycling tires may be the only profitable renewable fuel, because it was fuel to begin with!