Feasibility Study for a Project to Recycle Waste Tires into Rubber Products
Feasibility Study for a Project to Recycle Waste Tires into Rubber Products
The project aims to establish a factory to recycle waste tires into rubber products that can be used in various sectors, such as rubber flooring, barrier insulation materials, and industrial tiles. The project relies on cutting and separating metals, textiles, and rubber to produce rubber raw materials, with the potential to recycle used tires in the United Kingdom.
Study Content
Targeted Products and Services
Target Products and Services
Rubber granules in various sizes
Shock-resistant rubber tiles for use in parks and sports clubs
Rubber flooring for schools and playgrounds
Rubber traffic barriers and bumpers
Sound and vibration-insulating rubber materials
Possibility of selling recycled rubber as a raw material to other factories
Demand and Market Analysis
Demand and Market Analysis
The Kingdom produces approximately 25 million used tires annually, posing both an environmental challenge and an economic opportunity. The Saudi market lacks specialized facilities for processing tires on a large industrial scale. Demand for rubber tiles and flooring is high in schools, sports facilities, and government projects. Recycled rubber products are less expensive and environmentally friendly, making them a preferred choice for contractors. Government agencies are increasingly interested in sustainability and waste recycling programs, including the Saudi Green Initiative.
Investment Advantages
Investment Benefits
Significant government support for recycling projects through the National Center for Waste Management (Mawan)
Municipalities’ commitment to the safe disposal of tires creates opportunities for partnerships and supply
High export potential to neighboring Gulf countries that lack advanced recycling solutions
The project contributes to reducing environmental pollution and serves national sustainability goals
Raw materials are available free of charge or at nominal prices due to the large volume of tires dumped in storage sites or landfills
Project Features
Project Features
Reliance on locally available raw materials at very low costs
Ability to produce a variety of products from the same production line
Use of environmentally friendly crushing and processing technologies
Possibility of later expansion to produce fuel extracted from tires or rubber powder used in asphalt
Reducing dependence on imported synthetic rubber materials
Financial Indicators
Estimated Financial Indicators
The expected capital investment for establishing a tire recycling project is estimated to range between 20 and 35 million Saudi riyals, depending on production capacity and final product lines. The project is expected to achieve a return on investment of 15 to 20% annually due to the lower cost of raw materials and the high demand for rubber products. The payback period is estimated to be between 4 and 6 years from start-up.
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