Brief Profiles Of Investment Projects
For China's Agenda 21

 

Title Recovery and Utilisation of Waste Tyres
Type Expansion of production capacity
Description   
The company has built a factory for the production of activated modified rubber powder and de-vulcanised and modified rubber in Guangzhou city, Guangdong province with a capacity of 5,000 tons/year, using waste tyres as the major input. In this project capacity will be expanded to 10,000 tons/year. A tyre retreading line will also be installed with a capacity of 5,000 - 8,000 tyres per day. The technology for producing rubber powder includes the following stages: (1) powdering process (cutting, shredding, grinding, etc.) ; (2) synthetically curing the powder with activating agent LR-101, activating catalyst LB-6 and modifying agent LB-13.
Rationale   
About 800,000 tons per year of cured waste rubber is currently discarded in China and the quantity is increasing by about 12% per year. It is estimated that about 1.4 million tons of cured waste rubber will be discarded in the year 2000, of which the waste tyre is about 700 - 750 thousand tons. This amount of waste tyre can be converted to 400 - 470 thousand tons of activated modified rubber powder. Tests have shown that 40% of activated modified rubber combined with natural rubber provides the same wear qualities in tyres as those in which an equal quantity of styrene butadiene has been added. In a tyre producing factory, production costs can be decreased by about US$ 425 per ton with the use of activated modified rubber powder rather than natural rubber. By using 250 or 400 thousand tons of the recycled product rather than natural rubber, US$ 900 million or US$ 1.45 billion can be saved each year, respectively. The annual consumption of natural rubber in China in 1995 was 1.25 million tons. By consuming cured waste rubber from tyres, the project eliminates a major source of environmental pollution.
Products   
Activated modified rubber powder: 3,000 tons per year; De-vulcanised and modified rubber: 7,000 tons per year; Activated modified fibre: 500 tons per year; Retreaded tyres: 5,000-8,000 tyres per day
Location North Suburbs of Guangzhou city, Guangdong province
Available Information Feasibility Study, Technical Study
Total Investment (US$)

3.6 million

Foreign Currency (US$)

  

Financing

Co-operation Sought

Total Equity (US$)

3.6 million

Joint Venture

Of which Equity Foreign Partner (US$)

1 million

Co-operative Venture

Loan (US$)   

Licensing

Others(specify) (US$)      
Indicators of Viability Estimated Net Profit: US$ 0.65 million; Pay-back Period: 2 years

INFORMATION ON SPONSOR

Name Research Institute for Utilisation of Reclaimed Resources Tel +86-20-86627750
Address Guangzhou city, Guangdong province Fax +86-20-86627834
Annual Turnover (US$) 1993 14.5 million 1994 33.7 million 1995

217 million

Year of Establishment 1979 No. of Employees

100

Ownership

State

Fixed Assets (US$)

3 million

Registered Capital (US$)   
Land (ha.) 2 Building (m*m) 6000 Equipment (US$) 1 million

 


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