Tyre-recycling plant to be set up at Canning Vale

23/5/96

A new plant to be established at Canning Vale is set to make huge inroads into Western Australia's scrap tyre problem.

The plant will be built by Imtech Rubber Pty Ltd to recycle scrap tyres.

"Stage One of the plant could substantially replace the existing practice of controlled land filling of scrap tyres generated in the metropolitan area," Commerce and Trade Minister Hendy Cowan said today.

"The plant will save the State the $300,000 annual cost of disposal," Mr Cowan said.

"It will process scrap tyres into crumb rubber and other by-products.

"This will be a first for WA. It results from negotiations between the Department of Commerce and Trade and a Perth-based business. It will have big environmental benefits, as well as providing employment and commercial benefits.

"Stage Two will process part of the larger volume of scrap tyres generated in regional areas.

"Imtech Rubber will receive a capital establishment grant of $815,850 from Commerce and Trade to buy the land on which the plant will be built. Initially the money will be provided by way of an interest-free loan, but would be convertible to a grant upon certain performance criteria being met."

Scrap tyres in the metropolitan area currently are split or shredded and combined with fill to rehabilitate a Westrail quarry - Chris Hill near Toodyay - under the supervision of the Department of Environmental Protection.

The Chris Hill site is expected to be full within the next few months. Alternative sites are being developed to provide a replacement before a recycling industry is established, and as an emergency site.

Last year Cabinet endorsed the principle that re-use, recycling and energy recovery were the preferred methods for disposing of scrap tyres.

Cabinet also approved the phasing-out of land filling of scrap tyres in the metropolitan and near metropolitan area; offered a financial incentive for a major tyre recycler to establish; and changed regulations to ease restrictions on the fitting of retread tyres.

"The Government has to rectify disasters such as occurred at Bindoon in 1990 when 500,000 dumped tyres caught fire, costing the taxpayer $600,000," Mr Cowan said.

"Around 600,000 waste tyres are estimated to be generated by the Perth area alone every year.

"Imtech proposes to establish its plant on a 2.1 hectare site in Magnet Road, Canning Vale. It will mechanically process scrap tyres into various size grades of rubber crumb, separating out the tyre steel and fabric which represent 30 per cent and 5 per cent respectively by weight of a typical tyre."

The process involves a simple and robust system incorporating shredders, magnetic and pneumatic separators, granulators, grinders and screens. The only additive is water to suppress dust.

"Crumb rubber is the primary commercial product, with a small contribution to sales from steel scrap," Mr Cowan said.

"Crumb rubber is used in products such as playground and sporting surfaces, road construction and explosives.

"Stage One of the plant will process up to 7,000 tonnes of scrap tyres per year. Stage Two will add another 8,000 tonnes per year, to process much larger rubber material from earthmoving equipment and tyres from regional areas. The final capacity of the plant will be about 15,000 tonnes of tyres per year, generating nearly 10,000 tonnes of crumb rubber.

"The company has already identified long-term crumb-rubber markets totalling 5,000 tonnes of crumb rubber per year - equivalent to about 7,500 tonnes of scrap tyres.

"Stage One is scheduled to begin production in September. The plant will employ 13 people and has an estimated capital investment - including land - of $4.2 million. Stage Two is scheduled to come into production in July, 1997. An additional 13 people will be employed, with an estimated additional capital investment of $2.6 million."

The Government will phase out the land-filling of scrap tyres in the metropolitan area as the industry's capacity to recycle tyres increases.

Media contact: Peter Jackson 222 9595