Why Is All-win Industry Struggling?   
Problems and solutions to the comprehensive utilization of scrap tires in China


While the tire manufacturing industry undergoes rapid development driven by the auto market boom, plenty of scrap tires are being produced in China. Since the price of natural rubber remains high, taking full advantage of waste rubber resources is of great significance. However, at present, the comprehensive recycling of scrap tires is still a concern in China.

Problems

I. Low percent of utilization

Despite a severe deficiency in rubber resources, China is the world's largest consumer of rubber resources. Nearly 80% of natural rubber and more than 40% of synthetic rubber are imported. Of all resources, China's natural rubber supply has the largest dependence on import, even more than oil, iron ore or grain. Tire rubber accounts for over 70% of the total consumption of rubber. Therefore, strengthening the comprehensive utilization of scrap tires is very important for China.
   As the world's largest tire producer and auto market, China's volume of scrap tires is increasing dramatically. In 2009, 380 million automobile tires were produced and over 220 million tires were discarded. Therefore, resources of scrap tires are abundant. In recent years, China has issued a series of policies to push forward waste tire recycling by financial and other supports.
   Unfortunately, the actual situation is far from satisfactory. Although recycled rubber accounts for up to 71.3% of the total waste rubber utilization amount, retreaded tires, being in the forefront of the scrap tire industrial chain and value chain, accounts for only 4% of new tires. The figure is far below that in developed countries, which is 40%.

II. Lack of integrated recycling system.

Many enterprises engaged in waste tire utilization complain about the inadequate supply of tire carcasses. However, with the rapid growth of the vehicle population in China, scrap tires should increase more and more. In 2010, over 200 million tires will be discarded. Therefore, China has not established a complete waste tire recycling system yet and it is difficult to find a formal way to recycle tires. In order to achieve sound scrap tire utilization, tire recycling is the first challenge.

III. Production levels are uneven

Although over 1 000 enterprises retread tires, more than half of them are too small. Some of them do not even have the ability to produce qualified tires. Hence, domestic scrap tires resources are wasted, and the development of the industry is restricted as a whole.
   Enterprises engaged in rubber recycling have the same problem. There are more than 1 500 rubber recycling enterprises in China; while only about over 100 of them have an annual production capacity above 10 000 tons. At present, the annual output of recycled rubber in China is 2.45 million tons, and its production capacity is over 3.5 million tons. However, scrap tires still depend on imports. In addition, China’s production of recycling rubber, which is already saturated, accounts for 40% of the total rubber consumption.
   Therefore, if the production technology level cannot be promoted, China’s scrap tire retreading industry will not be among the world’s best, but only outperform other countries in volume.

Controversy on import of scrap tires

The core issue in scrap tire recycling is whether China should import scrap tires.
   Supporters say: At present, China is unable to produce tires for some types of trucks and engineering mechanical vehicles. These tires are all imported. It is reported that for these engineering tires, the price of a retreaded tire is only 1/4 to 1/3 of a new one. If one million radial truck tires, which are in great shortage in China, are imported and retreaded every year, this will save about 40 000 tons of rubber, 20 000 tons of carbon black, 17 000 tons of steel cord, 18 000 tons of oil, and 10 000 tons of steel. Moreover, the domestic tire retreading technology, such as the widely used "cold recapping method," is good enough now. An all-steel tire can be retreaded 5 or 6 times, and its follow-up life span can be longer than a new tire (up to 145% of a new one).
   The opposition says: China cannot consume such a large number of engineering tires in one year. Moreover, China has mastered the technology to produce a variety of engineering tires. Even if some types of tires cannot be produced, enterprises can find suitable alternative products at a relatively reasonable price, let alone 95% of domestic scrap tires need to be retreaded. It is unnecessary to import so many scrap tires.
    But supporters claim: Importing used tires is routine internationally. It is entirely feasible. In addition, China may require foreign enterprises to make used tires harmless before entering China. At the time of importation, customs and General Administration of Quality, Supervision, Inspection and Quarantine of China will carry out strict inspections to ensure that imported scrap tires meet all the requirements.
   The opposition responds: Scrap tires are commonly recognized as a hazardous waste internationally. It is impossible to eliminate all the hazards simply through a cleaning and disinfection process. From the perspective of the overall industry development, recycling and utilization of scrap tires should focus within the country.
   Both sides have some justification and factual basis. Up to now, the controversy continues.

Policies on disposing of scrap tires in developed countries can inspire China

United States: Each state has its waste tire disposal regulations. The current stock of scrap tires in the United States has decreased dramatically. More than 90% of scrap tires are recycled, mainly for the production of rubber powder, recycled rubber and thermal energy utilization. Through legislation, both tire manufacturers and dealers have their corresponding social responsibilities for disposing scrap tires.
   Canada: Each province has introduced its own measures to promote the establishment of waste tire recycling organizations to reasonably recycle used tires. Meanwhile, Canada government provides financial supports to enterprises engaged in waste tire processing. The aim of the effort is to promote more environmentally sound and more advanced production technology in those enterprises.
   France: Through various means such as tax cuts and subsidies, start-up and operation of scrap tire recycling business is supported, and research and development in this field is encouraged. Owing to these policies, a number of technological innovations for scrap tire recycling and recycled rubber production and application have been put forth.

Suggestions from various fields

   Suggestions from the Comprehensive Utilization of Waste Rubber Branch of the China Rubber Industry Association: to integrate the existing waste rubber products market.
   In accordance with the rules of the market economy, to integrate existing rubber recycling enterprises on a regional basis through the adoption of modern information management strategies and modern enterprise management; to unify productive technologies, quality standards, and testing methods; to put the new product into market after deep processing; to improve packaging quality and increase product quality. In addition, individuals and enterprises are encouraged to start a business to achieve comprehensive utilization of waste rubber according to the market demand.

Using foreign resources reasonably

In China, the reduction, reuse, and recycling of waste rubber products is extremely ac