Stop paying rising disposal fees. Learn how to start a profitable tyre recycling business in Australia—from choosing the right shredder to selling rubber chips & steel wire. Free ROI guide inside.

Why Australian Businesses Are Turning Waste Tyres into Profit

Australia generates millions of end-of-life tyres (ELTs) every year from passenger vehicles, transport fleets, agricultural machinery and mining operations.

For many businesses, waste tyres have traditionally been treated as a disposal problem.

They pay collection companies, transport providers and recyclers to remove unwanted tyres.

However, more Australian companies are now asking:

“Can waste tyres become a business opportunity instead of an ongoing expense?”

The answer depends on three factors:

• The volume of tyres available
• The cost of current disposal methods
• The market value of recovered materials

By investing in the right tyre recycling equipment, businesses can transform waste tyres into valuable products, including:

• Tyre chips for TDF (Tyre Derived Fuel)
• Recovered steel wire
• Rubber granules
• Rubber powder products

For companies generating several tonnes of waste tyres every day, owning a recycling system can provide greater control over costs and material recovery.

How to Start Tyre Recycling in Australia: A Modular Path That Won't Break the Bank

Many companies hesitate to enter the tyre recycling industry because they assume they need to invest in a complete recycling plant immediately.

However, a modular approach allows businesses to start small and expand as their tyre supply and market opportunities grow.

A typical development path:

Stage 1: Primary Tyre Shredding

Start with a heavy-duty tyre shredder to process whole tyres into manageable tyre chips.

Suitable for:

• Tyre retailers
• Transport companies
• Waste management businesses

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Stage 2: Steel Wire Separation

Add tyre wire separation equipment to recover valuable steel and improve rubber quality.

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Stage 3: Rubber Granulation

Further process tyre chips into:

• Rubber granules
• Rubber powder
• Higher-value recycled rubber products

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Stage 4: Complete Tyre Recycling Plant

Expand into a complete solution with:

• Shredding
• Separation
• Screening
• Granulation
• Material handling

This modular strategy helps companies reduce initial investment risk while creating a scalable recycling business.

Is a Tyre Shredder Worth the Investment? 3 Scenarios Where It Pays Off

A tyre shredder is not suitable for every business.

The investment makes the most sense when a company has a stable tyre supply and wants to reduce disposal costs or create additional revenue streams.

Scenario 1: Tyre Shops Processing Hundreds of Used Tyres Weekly

A typical passenger car tyre weighs approximately:

10–15 kg per tyre.

For businesses processing:

• 150–200 passenger tyres per day

the waste tyre volume can reach:

approximately 2–3 tonnes per day.

At this level, purchasing a tyre shredder may become more economical than continuously paying external recyclers.

Scenario 2: Transport Fleets Managing Truck and Commercial Tyres

Fleet operators often generate a consistent supply of:

• Truck tyres
• Bus tyres
• Commercial vehicle tyres

A recycling system allows them to:

• Reduce scrap tyre disposal costs
• Control their waste stream
• Recover recyclable materials

Scenario 3: Mining Companies Handling OTR Tyres

Australia's mining sector creates unique challenges due to oversized tyres.

Mining companies require specialised:

• OTR tyre recycling solutions
• Heavy-duty shredding systems
• High-torque processing equipment

For these applications, equipment configuration must be selected based on tyre dimensions, daily volume and final product requirements.

Before Buying Equipment: Evaluate Your Tyre Recycling Opportunity

Before investing in tyre recycling equipment, businesses should evaluate:

1. How many tyres can you process every day?

Consider:

• Current tyre volume
• Future supply growth
• Seasonal changes

2. What tyre sizes will you process?

Different tyres require different configurations:

• Passenger car tyres
• Truck tyres
• Agricultural tyres
• Mining OTR tyres

3. What recycled products do you want to produce?

Your target market affects equipment selection.

Possible outputs include:

• Tyre chips
• TDF material
• Recovered steel
• Rubber granules
• Rubber powder

4. Where will you sell the recovered materials?

Understanding local demand is essential before investing.

Consider:

• Scrap steel buyers
• Rubber product manufacturers
• Construction applications
• Fuel users

Not sure how to calculate your tyre volume or choose the right equipment size?

Contact ENERPAT for a free tyre recycling feasibility assessment. Our engineers can help evaluate your material volume, output requirements and suitable equipment configuration.

Tyre Recycling in Australia: Market Context & Opportunities

The Australian tyre recycling market is supported by increasing environmental awareness, rising disposal costs and growing demand for recycled materials.

Australia generates more than 50 million end-of-life tyres annually(Source: Tyre Stewardship Australia), creating a significant opportunity for resource recovery businesses.

Major tyre sources include:

• Automotive service providers
• Transport fleets
• Agricultural operations
• Mining companies

Landfill Levy Drives Recycling Demand

Several Australian states apply landfill levies, including:

• New South Wales
• Victoria
• South Australia

These charges increase the cost of waste disposal and encourage businesses to explore alternative recovery solutions.

For companies generating large volumes of waste tyres, investing in tyre recycling equipment can help:

• Reduce ongoing disposal costs
• Divert tyres from landfill
• Recover valuable rubber and steel materials
• Build a long-term recycling business

Australian Waste Tyre Regulations and Compliance

Before starting a tyre recycling operation, businesses should understand local environmental requirements.

Depending on the state, processing capacity and storage volume, companies may need to consider:

• Waste storage requirements
• Environmental approvals
• Recycling facility requirements
• Waste transport regulations

Businesses should check requirements from relevant environmental authorities, including:

• EPA Victoria
• NSW EPA
• Other state-based environmental agencies

Growing Demand for Recycled Tyre Products

Recovered tyre materials can enter several markets.

Tyre Derived Fuel (TDF Australia)

Processed tyre chips can be used as alternative fuel materials in suitable industrial applications.

Rubber Products

Rubber granules and powder can be used for:

• Playground surfaces
• Sports flooring
• Rubber tiles
• Modified rubber products

Recovered Steel

Steel wire separated from tyres can be sold into scrap metal recycling markets.

Ready to Start Your Tyre Recycling Business?

Every tyre recycling operation starts with the right equipment — and the right partner.

ENERPAT provides modular tyre recycling solutions designed for Australian businesses, from single tyre shredders to complete recycling plants.

Whether you are:

• A tyre shop looking to reduce disposal costs
• A transport company managing fleet tyres
• A mining operation handling OTR tyres

ENERPAT can help you select the right recycling configuration based on your tyre volume, required output and investment plan.

Contact ENERPAT’s Australian team for a free tyre recycling feasibility assessment and equipment recommendation.