Rubber lifecycle report for the Australian Tyre Industry

Narm Rubber Lifecycle Tyre Assessment

© Independent Inspections Revised July 2012 Page 1

Narm Rubber Products Australia

Tyre Life Cycle Assessment

Independent Inspections

ABN 91 239 548 041

T 1300 857 149

F 1300 857 150

M 0402 259 479

E [email protected]

W www.iigi.com.au



Table of contents

Narm Rubber Products Australia ................................................ 1

Tyre Life Cycle Assessment ...................................................... 1

Table of contents ....................................................................... 2

1.0 Background of Tyres ...................................................... 3

2.0 The Business Case ......................................................... 3

3.0 Product Stewardship Scheme Background ....................... 3

4.0 Product Stewardship Scheme Overview........................... 6

5.0 What are Tyres Made of ................................................. 9

6.0 How are Tyres Measured in Size ................................... 11

7.0 Rubber Products Sector Description .............................. 13

8.0 Future Trends ............................................................. 13

9.0 Crumbing of Tyre Rubber ............................................. 13

10.0 Imported Products with Polymer .................................. 13

11.0 Market Support .......................................................... 14

12.0 Import Reduction and Savings with Recycled Rubber .... 14

13.0 Recycling plant Return on Investment ........................... 17

14.0 Remote Location of OTR Tyres .................................... 18



1.0 Background of Tyres

Tyres are essential for mobility, providing the moving surface of our many transport

vehicles and the only contact point with the ground. Simple in appearance, tyres are

sophisticated products. Tyre manufacture involves a complex blend of materials and

assembly processes to produce the thousands of different products used on equipment

ranging from bicycles to huge earthmovers. A typical tyre includes dozens of different

components, using more than one hundred primary raw materials that must be precisely

assembled and processed to achieve the right balance between many competing factors:

grip, energy efficiency, handling, comfort, noise and cost, to name a few.

2.0 The Business Case

Tyre industry leaders recognise that there are both opportunities and challenges

associated with tyre manufacturing processes, on the one hand, and sustainable

development, on the other. By taking a thoughtful look at these issues, tyre industry

leaders intend to (1) develop additional knowledge regarding sustainability challenges, and

(2) formulate an approach that will help align industry practices more closely with

sustainable growth. These leaders also hope to foster increased awareness and

discussion of these issues with key stakeholders (customers, neighbours, associates,

suppliers) in ways that are balanced, interactive and constructive.

3.0 Product Stewardship Scheme Background

In Australia in 2009-10, 48 million tyre Equivalent Passenger Units (EPU) reached end

of life, an increase of approximately 14 % from 2007-08.

The vast majority of Australia’s end-of-life tyres are currently disposed of through landfill,

exported, stockpiled, illegally dumped or have an unknown fate. Only a small proportion

of end-of-life tyres are recycled or used as a fuel for energy in Australia. The export of

end-of- life tyres in particular has risen dramatically in recent years, increasing by over

200% since

2006-07. Available evidence suggests that some exported tyres are primarily burned

for fuel in an environmentally unsustainable fashion.



Each passenger car tyre contains approximately 1.5kg of steel, 0.5kg of textiles and 7 kg

of rubber. Disposal through landfill, dumping or export of whole baled tyres represents the

loss of a valuable resource. End-of-life tyres and tyre derived products can be put to

environmentally sound use in many ways including the manufacture of new rubber

products, as a constituent in asphalt roads and in surfaces such as sporting fields and

playgrounds. They are also valuable as a fuel source for industries such as producers of

energy and cement and as a substitute for diesel in explosives.

When end-of-life tyres are put to environmentally sound use they: reduce the demand

for virgin materials in the production of goods and energy; reduce pressure on landfill

space and improve the amenity of the land; and eliminate the risk of fire and breeding

grounds for mosquitoes and other vermin.

Despite the benefits, increased tyre recycling and resource recovery is constrained by:

-lack of viable markets for end-of-life tyres and tyre derived products;

-limited, and geographically concentrated, tyre recycling infrastructure;

-lack of standards for the use of end-of-life tyres and tyre derived products in

roads and other infrastructure projects;

-demand for whole baled tyres from international energy markets, and

-regulatory regimes governing the handling of end-of-life tyres that are

inconsistent between Australian jurisdictions.

In recognition of these potential benefits and constraints the Environment Protection

and Heritage Council agreed, in November 2009, to work with the tyre industry on the

establishment of a voluntary industry-led product stewardship scheme for end-of-life

tyres. The development of a product stewardship initiative was to assist in overcoming

impediments to markets for end-of-life tyres and tyre derived products and to gain more

value from the end-of-life tyres generated in Australia each year.

Industry and government worked together to develop a model scheme that was

considered by the COAG Standing Council on Environment Water in September 2011.

Environment ministers continued to support the work and encouraged further



consultation with the broad range of stakeholders during the completion of the

guidelines. The scheme that is detailed in this document is an outcome of that work,

incorporating the input from stakeholders.

The scheme is designed to increase resource recovery and recycling and to minimise

the environmental, health and safety impacts of all end-of-life tyres generated in

Australia.

This will be achieved through the establishment of:

a series of commitments requiring tyre importers, retailers, collectors,

transporters, recyclers, governments, fleet operators and other consumers to

play their part in ensuring end-of-life tyres are disposed in a way that represents

environmentally sound use

- Compliance with the commitments made by individual organisations

through participation in the scheme will be enforced via a well resourced

regime of random and risk based audits; and failure to adhere to

commitments made through participation in the scheme may lead to

revocation of a Participant’s accreditation.

enterprise to enterprise agreements or contractual arrangements between individual businesses and organisations, which give effect to the industry wide commitments

a tyre stewardship fund used to support the activities of the scheme and

for investment in research and development for new technologies and

market development, and

an organisation called Tyre Stewardship Australia (TSA) responsible

for administering the scheme and for working to remove impediments

to the development of a sustainable domestic tyre recycling industry.

Tyre Stewardship Australia, a not-for-profit company limited by guarantee, is

responsible for administering the scheme. It is funded by tyre importers at a rate

proportional to the number of tyres they import into Australia.

The expectation is that the scheme will be put forward for accreditation under the

voluntary product stewardship provisions of the Product Stewardship Act 2011.



The scheme is designed to deliver a range of benefits for individual Participants, the

tyre industry as a whole and for the community. These include:

- increased use of a resource stream currently being disposed of as waste

- reduction in the number of tyres not going to an environmentally sound use

- an enhanced Australian recycling industry and sustainable markets for end-of-

life tyres and tyre derived products

- increased capacity to handle end-of-life tyres in Australia

- creation of new markets for end-of-life tyres and tyre derived products

through research and development

- an improved business environment particularly for tyre collectors and

recyclers

- increased consumer awareness of the impacts of end-of-life tyre disposal, and

- enhanced credibility for the tyre industry through demonstrated leadership in

environmental management and adoption of corporate social responsibility

strategies.

4.0 Product Stewardship Scheme Overview

Objectives

The objectives of the scheme are to:

- increase resource recovery and recycling and minimise the environmental,

health and safety impacts of end-of-life tyres generated in Australia, and

- develop Australia’s tyre recycling industry and markets for tyre derived products.

Principles

The scheme:

- is industry-led and operated

- acknowledges the inherent value of all end-of-life tyres across Australia

- recognises that there is a cost (see shaded box, page 9) associated with

ensuring the environmentally sound use of end-of-life tyres

- is committed to market based solutions for environmentally sound end-of-life

tyre management



- is committed to achieving the highest value end use possible for end-of-life tyres

- complements relevant policies and legislation and supports compliance with

relevant laws and practices, including those that apply to the environment

and occupational health and safety, and

- is appropriately resourced and empowered to deliver its objectives according

to agreed timeframes.

Scope

The scheme is national in scope and is relevant to all vulcanised rubber tyres entering

the Australian market for the first time. The scheme applies to tyres that are loose

replacements for use on, or already fitted to, motorised vehicles and non-motorised

trailers towed behind motorised vehicles. The scheme applies to, but is not limited to,

tyres for motorcycles, passenger cars, box trailers, caravans, light commercial vehicles,

trucks and truck trailers, buses, mining and earth moving vehicles, cranes, excavators,

graders, farm machinery, forklifts and aircraft.

Retreaded Tyres

The retreading of tyres is consistent with the objectives of the scheme. Retreading

extends the life of tyres and delays their entry into the waste stream.

Off the Road Tyres

Off the road tyres (OTRs), including those used in agriculture and mining,

constitute approximately 30% of the total annual consumption of tyres in Australia

each year and are included within the scope of the scheme. For OTRs, the key

element of the scheme is an investment in overcoming impediments to resource

recovery and recycling. The scheme acknowledges the geographic barriers to

recycling OTR tyres in Australia, the need for specialised recycling equipment and

the need to stimulate markets for tyre derived products. Investment in OTR tyre

recycling and resource recovery is likely with a current shortage of sites and

equipment to undertake these operations.



Performance measures

The performance of the scheme in achieving its objectives is to be measured by

the following means:

a) the number of Participants in the scheme

b) the percentage of tyre importers and vehicle manufacturers and importers

that are Participants in the scheme, the aim being to achieve 100% of tyre

and vehicle importers in the scheme within 5 years of commencement

c) the resource recovery and recycling rates of end-of-life tyres that can

be attributed to the scheme

d) the national resource recovery and recycling rates of end-of-life tyres

e) reduction in the total number of end-of-life tyres that are not going to

an environmentally sound use.

f) the quantity of tyre derived products sold or otherwise provided for

environmentally sound use.

General commitments

All Participants in the scheme also commit to contribute to:

- the environmentally sound use of end-of-life tyres;

- elimination of the export of whole baled tyres from Australia;

- elimination of the illegal dumping of end-of-life tyres;

- elimination of disposal of end-of-life tyres to landfill (except where no viable

alternative is available, for example, in rural and remote areas where

recycling facilities are not available, or transportation costs are prohibitive).

Governance - Tyre Stewardship Australia (TSA)

A not-for-profit company called Tyre Stewardship Australia will be established to

administer the tyre stewardship scheme. The principal objectives to be included in

the constitution of the company are to:

– implement the product stewardship scheme for end-of-life tyres;

– administer the accreditation of Participants in the scheme;

– monitor, audit and report on the development of the scheme;

– undertake education, awareness and information activities to promote the



11%

5%

18%

25%

13%

28%

The composition of an average vehicle tyre

Passenger car tires feature rayon or polyester cords radially disposed along the carcass ("radial tires"), while nylon cords are placed under the tread or near the

Natural rubber has unique elastuc properties and is an essential element of a tire. Truck tires have an even higher natural rubber content then passenger car

Synthetic rubber is added to natural to achieve the desired elasticity

Other chemicals have various functions, like oils, zinc oxide or anti-

Carbon black and silica are the basic tire fillers, providing the necessary "structure" to the

High-strength steel cords are applied under the tread of passenger car tires (passenger car tires) while other steel wires are located near the bead to assure adherence to the rim

5.0 What are Tyres Made of

A typical passenger tyre contains 30 types of synthetic rubber, eight types of natural

rubber, eight types of carbon black, steel cord, polyester, nylon, steel bead wire,

silica and 40 different kinds of chemicals, waxes, oils and pigments. They typically

contain 85% hydrocarbon, 10-15% iron (in the bead wire and steel belts) and a

variety of chemical components. Vulcanization (a technique for hardening rubber,

making it more durable), the introduction of radial tyres in the 1950s and other

advances, including compound revisions for greater durability and longer tread

life, meant that by 1995 an estimated 2% of recycled material was being used in

tyres. Today, the use of recycled rubber is gradually increasing as the properties of

recycled rubber have a positive impact on products and environment.

Tyre breakdown



Manufacturing Process

The process temperature during mixing, extrusion and calendaring ranges between

approx 80 and 120 °C, while during vulcanization the temperature is higher ranging

from approximately 150 to 180 °C. In vulcanization, the material changes from a

viscous state to an elastic material by a cross-linking reaction between polymer,

sulphur, accelerators and the activators stearic acid and zinc oxide. There are hundreds

of different tyre formulations in existence and for the most part those formulations are

proprietary to the individual tyre companies.

OVERVIEW OF TYRE WEAR PARTICLES IN THE ENVIRONMENT

Tyre wear particles (TWP) are released from the tyre tread during use of the tyres. The

particles are formed as a result of the tread abrasion from the road surface. Tyre wear

itself is a complex physico-chemical process which is driven by the frictional energy

developed at the interface between the tread and the road pavement. The amount of

wear that occurs during a tyre's lifetime varies enormously depending on its type and

how it is used.

The factors affecting tyre wear include:

Tyre characteristics

Road surface Vehicle operation

Vehicle characteristics



TWP consist of a complex mixture of rubber, asphalt, road dust, gravel, and other

materials. TWP are released directly to the environment on both the road surface and

suspended in the air. Subsequently the particles can be transported to the soil and

surface water via road way run-off and air deposition. During Phase I, data

availability/usability for the assessment of potential human and ecological health risk was

assessed including information on human and ecological exposure to tyre wear particulate

and the toxicity of tyre wear particles.

6.0 How are Tyres Measured in Size

Data on tyres will be expressed in equivalent passenger units (EPUs). EPUs are a

standardised measure for the quantity of tyres. Where data collected is provided by

weight, data will be converted into EPUs for reporting.

Tyres will be classified as being passenger, truck or off-the-road (OTR) tyres.

Passenger tyres include those used on passenger vehicles including motorcycles and

caravans, as well as trailers for domestic use. Truck tyres are those used on buses, light

and heavy commercial vehicles, prime movers, trailers and semi trailers, and fire fighting

vehicles. OTR tyres are those used on machinery or equipment used in areas such as

agricultural, mining and construction and demolition.

The number of tyres per vehicle type and the indicative EPUs per vehicle is shown

below.

The values and terminologies shown in below will be verified and refined during the

course of data collection for this study. This will include an evaluation of average weight

of tyres for different vehicle types during the survey of the tyre industry, in particular

truck tyres and passenger vehicle tyres (as noted above).

The calculation of EPUs per vehicle will be made on the assumption that all vehicles,

either assembled or unassembled, have a full complement of tyres fitted, including

spare tyres. The calculation of EPUs through the lifecycle of tyres will include both the

outer tyre and the inner tube for pneumatic tyres.



Type Classification

Vehicle/tyre type EPU per tyre Industry

Passenger

Motor cycles 0.5

Passenger Vehicles 1

Campervans 1.5

Light Commercials 1.5

Truck

Light truck 2

Truck 5

Super Single 10

Off-the-road

Solid

Small 3

Medium 5

Large 7

Extra-Large 9

Tractor Small 15

Agriculture Large 25

Fork-lift

Small 2 Wholesale and retail

trade Medium 4

Large 6

Grader 15

Earth Mover

Small 20

Medium 50

Large 100

Mining Extra-large 200

Giant 400

Bobcat 2

Aircraft

Small 2

Medium 4

Large 10



7.0 Rubber Products Sector Description

The rubber products sector makes vehicle tyres, rubber hoses, rubber mattresses and

Machine belts. Australia Consumes around 540,000 tonnes per year with around half

of this amount is tyres.

Trends over the last seven years have seen the increase of 33 percent per year in tyre

imports as well as an increase in earthmoving equipment. Record levels of tyres being

imported into Australia to the value of $480 Million dollars per quarter, is generating a

large environmental impact in the industry. Diversion of used tyres from landfill will

increase recycling of rubber products and extend tyre product life.

There are now about 100 Million tyres on the road with 6 Million tyres purchased each

year.

8.0 Future Trends

The CSIRO study forecasts the number of cars to expand by 40 percent by the year

2015, and from the latest figures this is quite a conservative estimate as the import of

tyres has increased by 252 percent in the last seven years.

9.0 Crumbing of Tyre Rubber

Crumbing of rubber products is not a new process, but is being more used with the

recycling process to retread tyres with a hot cap or depending on the quality the uses for

rubber matting or other product fit for purpose. It is estimated from recycling and crumbing

of tyres can save up to 211 Million dollars annually as well as extra benefits of other rubber

product import reduction.

10.0 Imported Products with Polymer

Some Rubber Tiles imported from overseas that have previously been used in

playgrounds have air voids and polymer products cannot be separated from the rubber.

It recommended that these products should not be allowed to be imported in their current

state.



11.0 Market Support

Companies including QR National, Karreman Group, Yellow Cabs, Clarks Transport and

Downer mining have expressed interest in this area of rubber products with the

replacement of concrete railway sleepers for noise reduction and a 50 precent reduction

in tyre management.

12.0 Import Reduction and Savings with Recycled Rubber

The following is the forecast reduction of imports of both tyre and rubber products in

crumbing rubber tyres in Australia. Allowance of transport of rubber tyres from Japan to

Australia has also been calculated as well as the reduction of fully loaded container

ships required, with reference to savings in greenhouse gas emissions and the impact of

carbon tax liability. Calculations are bases on 200 tyres per container with a container

capacity of 10000 units travelling as 22.5 knots on a 7 day travel time.

The data below supports that the reduction in waste and imports provides numerous

benefits to the Australian economy and increases resource recovery of rubber.

Annual Figures Before After Saving

Current Tyre Imports (EPU) 58,000,000 29,000,000 29,000,000

Number of Boats (Japan) 59 30 29

GHG From Transport (t) 69,550 35,364 34,186

Carbon Tax @ $23 1,599,650 813,372 786,278

Current Rubber Imports (EPU) 45,000,000 9,000,000 36,000,000



Carbon Tax @ $23 623,588 124,718 498,870

Total Annual Savings Imports 103,000,000 38,000,000 65,000,000



Carbon Tax @ $23 2,223,238 938,090 $1,285,148



The table below represents current tyres in use on the roads and circulation in Australia for 2009 to 2010.

By rejuvenating the truck and OTR Tyres will reduce the impact of industry and reduce greenhouse gas

emissions especially with the reducing lifecycle to the tyre in kilometres travelled. The end of life with tyres

with export of tyres to mainly Vietnam, and then recycled.

Location Passenger

Truck

OTR

Total

(EPU)

(EPU)

(EPU)

(EPU)

ACT 1,026,126 152,667 114,262 12,028 1,293,055

NSW 19,063,267 7,086,056 4,950,729 521,129 31,100,052

NT 551,864 406,578 339,795 35,768 1,298,237

QLD 14,031,327 6,528,477 4,644,372 488,881 25,204,176

SA 5,002,192 2,094,045 1,458,186 153,493 8,554,423

TAS 1,704,154 707,618 515,846 54,300 2,927,618

VIC 16,795,660 7,258,905 3,279,931 345,256 27,334,496

WA 7,691,668 4,319,984 4,459,170 469,386 16,470,822

Total 65,866,257 28,554,330 19,762,291 2,080,241 114,182,879

0%

63%

18%

10%

6% 3%

The Fate of Tyres in Australia

Energy Recovery Unknown Export Recycling Civil Engineering Licensed landfill

Recycling 47%

Energy recovery

52%

Reuse and retreading

1%

Export



The Carbon impact graph below shows the Australian tyre footprint

The graph below shows the tyre footprint after the implementation



13.0 Recycling plant Return on Investment

Currently there is a shortage of facilities to undertake this scheme, costing of $20,000,000

to build a site to undertake the program efficiently, the location is recommended in the

hunter valley with the amount of OTR tyres in the area for a better return on investment.

From previous calculations a return of investment has been projected at 3 months in the

current climate.

Current Figures Before After Saving

Current Carbon Impact (T) 21,458,855 -62,650,003 84,108,858

Carbon Tax @ $23 493,553,665 -1,440,950,069 1,934,503,734



ISO

1

901

1:2

00

2(E

)

14.0 Remote Location of OTR Tyres

Currently mining companies do not know what to do with these tyres and are being used a

road barriers and not utilised to their capacity, and the mindset is they can get a tyre from

china within 4 days, but they don’t wear that well.

With mining companies and tyres in remote locations either a mobile unit or shared unit

will need to be installed at a convenient location to reduce transport costs.

k

Truck