The New Life of Rubber Tires: How a Company’s Business Move Can Help Reduce

Rubber’s Impact

Michael R. Barr, Alicia M. Case, & Duy L. NguyenNational UniversitySUS 603 Sustainable Innovation

Introduction

• Liberty Tire Recycling and its role in the Scrap Tire collection and processing industry

• CEO Jeffrey Kendall• Scrap Tire Problems and History• Strategic Intent• Progress, Challenges and Opportunities• Case Questions

CEO Background

• Created in 2000 by CEO Jeffrey Kendall and partners Donald Rea and Andy Russell

• Purchased 2 North Carolina scrap tire recycling companies

Jeffrey Kendall, CEO

CEO Background

• Graduated cum laude from the University of Pittsburgh with a law degree

• Worked for several years in the solid waste and recycling industries• Quoted as saying “At Liberty Tire Recycling, we are always looking

at ways to develop productive partnerships that lead to the recovery and recycling of more scrap tires across North America.”

Jeffrey Kendall, CEO

Current Scrap Tire Problem

• U.S. generates more than 285 million scrap tires annually ("Scrap tires and," 2013).

• About 78% discarded tires are landfilled, stockpiled, or illegally dumped while remainder exported (Kemkar).

• Tires left outdoors collect water and create breeding sites for mosquitoes, which carry West Nile virus (Madrid, 2011).

• Tire piles pose special fire hazard due to synthetic rubber’s petroleum by-product content.

• Extreme heat from fire liquefy tires, releasing hydrocarbons and other contaminants to the ground and even ground water (“Scrap tires and,” 2013).

History of Scrap Tire Problems

• Before 1960’s, tires were made from natural rubber that can be devulcanize when heated strongly, but is perfect for rubber reclaiming (Kemkar).

• Reclaiming rubber process was effective and profitable, hundreds of reclaiming facilities opened in the U.S.

• World War II necessitated the development of synthetic rubber (Kemkar).

• Synthetic rubber was cheap and extended treadlife (Kemkar). • No commercial operations for tire rubber reclaiming

domestically by 1996 (Kemkar).

History of Scrap Tire Problems

• Retreading tires used to be the norm prior to 1980’s • Introduction of all-season tires and steel-belted

radial ply tires eliminated the need for retread (Kemkar).

• New tires design did not allow retread. • Low-cost and new radial ply tires from Asia priced at

levels close to the price quality of retreaded casings (Kemkar).

Strategic Intent

• Become a pioneer in North America’s scrap tire processing and recycling sector.– Buy-and-Build Strategy• Established a nationwide network of 40+ Collection

and Processing Facilities over 12 years• Infrastructure helps in management of logistic

costs; ensures cost competitive offerings• Effectively serve a larger number of customers

22 Years of Scrap Tire Recycling Progress

Challenges and Opportunities

• Involves economic, governmental, and social factors in growth of rubber asphalt and crumb rubber material markets– Continue acquisition strategy– Recycled rubber poses no EH&S hazards– Education and encouragement of

government entities to procure recycled content products

Case Study Questions

• How will Mr. Kendall expand the asphalt rubber market?

• What additional technologies are necessary for Liberty Tire Recycling to adopt?

• What external suppliers/distributors will Liberty Tire Recycling have to work with to increase their production?

References

• Kemkar, N. (n.d.). The scrap tire problem in Rhode Island: Analysis and recommendations. Unpublished manuscript, A.B. Environmental Studies, Brown University, Providence, RI, Retrieved from http://envstudies.brown.edu/theses/01Kemkar.pdf.

• Madrid , D. (2011, March 27). Maricopa county, state seeing an increase in illegal tire dumping read more: httpmaricopa-county-increase-illegal-tire-dumping. Retrieved from http://www.azcentral.com/news/articles/2011/03/27/20110327maricopa-county-increase-illegal-tire-dumping.html.

• Nixon, A. (November 22, 2011). Tire recycler finds success forging new roads for rubber. Pittsburgh Tribune-Review, 1-2.

• Scrap tires and environmental issues. (2013, January 26). Retrieved from http://en.wikipedia.org/wiki/Tire.

• Taylor, B. (December 28, 2010). Mass Production. Recycling Today, 1-6.• U.S. scrap tire management summary 2005-2009. In (2011). Washington

DC: Rubber Manufacuturers Association. Retrieved fromhttp://www.rma.org/scrap_tires/