Ongoing investment and growth at one of the country’s largest tyre recyclers, is showing that it is possible to shrink the ever-growing mountain of truck tyres threatening to become a national environmental hazard whilst also creating a profitable business.

The Mathe Group’s Hammarsdale plant, which has quadrupled employment and more than doubled output since coming on stream in 2016, proves that recycling tyres is not only sustainable but could evolve into a growth industry, says Dr Mehran Zarrebini, head of British investment group PFE International which is one of the major shareholders in Mathe Group.

Many believed that recycling of tyres in South Africa was not sustainable because of limited demand for rubber crumb and substantial set up costs. Initially, small companies using antiquated equipment struggled to compete with imported product that had been subsidised by governments in the countries of origin.

An expanding customer base

The company, which started from humble beginnings in 2012, has expanded its customer base to the point where Van Dyck Floors, its original offtake partner, now accounts for just 15% of offtake and is constantly processing enquiries from potential new customers, Zarrebini adds.

Mathe Group currently consumes between 30 to 40 tons of used truck tyres per day. Each month, the Hammarsdale factory produces approximately 600 tons of rubber crumb.

Approximately 15 % of this rubber crumb goes to the Van Dyck Floors factory in Prospecton where it is used to manufacture rubber flooring and paving and acoustic underlays for soft and hard flooring which are exported to 50 countries across the world.

An additional 35% of output is used for foundations for sports fields utilising artificial grass in South Africa, Namibia, Zambia, Botswana and the Congo while 50% is purchased by the roads industry as it is a key component in modified bitumen for road resurfacing. Mathe also supplies manufacturers of non-slip paint and specialised coatings and tyre retreaders.

A growing market for rubber crumb

During 2017, Mathe Group processed over 150 000 used truck tyres and Zarrebini is confident that it will pass the 200 000 tyre mark during 2018.

Demand for the resulting rubber crumb is growing and Zarrebini says that the plant is likely to run into capacity constraints soon.

“As a result, we are investigating the introduction of a new line that will not only increase output but give us more flexibility. We can then move from recycling just standard truck tyres to car tyres and truck tyres of different sizes. This will not only increase capacity but will also allow us to use a far broader spectrum of waste material,” he explains.