The Marketing plan is simple; the outputs of the plant are essentially commodity items. The demand for oil, carbon black and steel are well known industry wide. The Company has two unique advantages in the marketing all three commodity items.
The first advantage is that all three of the Company's products are essentially created from waste tires and thus are considerably less expensive to produce. This critical advantage allows the Company to discount their price to the market while still showing aggressive ROI. The second advantage, our raw material supply chain is virtually unlimited. The feed stocks for the plant to produce these commodities are provided to the Company in “unlimited” quantities at little to no cost. Additional income now, will come by tire haulers dropping off their waste tires to the Company. The major production costs are the shift labor and electricity used by the production line. When the Company processes 1% of the waste tires in USA, we will need an additional 100 plants running at double the capacity of this initial plant.
We intend to take full advantage of the recycling revolution and the “Green Industry”. We all are aware of the current oil imports into the Untied States. However, USA requires far more oil than can currently be produced. So establishing a market for the fuel oil is not required, the market already exists and will absorb all the oil it can. We believe there are large consumers of fuel oil that will buy at market price and our Tire Derived Fuel Oil (TDFO) will have a “green advantage” for our own advertising programs. The fuel is “green”, recycled, and provides our customers the additional “bragging rights” of helping the environment by reducing waste without further depleting the worlds resources. The Fuel oil will be marketed to large scale consumers operating boilers or other large diesel oil consumers. The fuel produced by the system is the equivalent of #2 Diesel Oil.
The goal is to tap into specialty carbon black markets. However, until these markets can be readily identified, the output will be customized for particular carbon black markets. We can also go to existing carbon black chemical companies to blend with their current production. This will provide the Company a ready market to sell to and reduce the cost of carbon black to various chemical companies.
According to the new report published by Grand View research, the global carbon black market size was estimated at USD 22.35 billion in 2023 and is projected to expand at a CAGR of 4.8% from 2024 to 2030
Increasing automotive sales and consequent rise in tire production is expected to drive industry growth over the forecast. The vast majority of carbon black finds use as reinforcement material in vulcanized rubber goods, including over 60 percent in motor vehicle tires alone. Carbon black acts as a reinforcement material for tires and rubber, and possesses electrical conductive properties. Carbon black provides pigmentation, conductivity, and UV protection for a number of coating applications along with toners and printing inks for specific color requirements. Its multiple applications across various end products along with rising economic outlook have significantly enhanced its demand over the years.
According to Grand View research, the global specialty carbon black market size was estimated at 2.74 billion in 2023 and is projected to grow at a CAGR of 10.2% from 2024 to 2030. China's specialty carbon black market is projected to grow at a CAGR of 12.2%. This is attributed to the surging demand for the product as reinforcing agents and other uses.
The material for the plant is relatively simple. The used tires will be delivered to the plant in 40" container boxes on wheels. The filled containers will be parked at the loading lot for unloading. Once parked, the tractors will disconnect from the containers, and leave it for the Company to empty.
The loading lot will have a continuous conveyor running into a feeding system. The Company is currently scheduled to receive trucks 7 days a week and 24 hours/day. During this time, Company employees, will manually off load trucks to the system. The Company will stage supply chain required for each day’s consumption to allow for 24 hours operation, 7 days per week.
The actual plant is almost fully automated with the exception of unloading. The production only requires a shift Operation Engineer alongside an assistant engineer. The engineers will be able to monitor the entire plant with cameras and other instruments.
The 0800-1600 shift (Monday-Friday) will normally be comprised of 4 dock workers, 1 warehouse material worker (moving packaged Carbon Black), 1 shift Operating Engineer, and 1 assistant engineer.
The 0000-0800 shift (Monday-Friday) will normally be comprised of , 1 warehouse material worker (moving packaged Carbon Black), 1 shift Operating Engineer, and 1 assistant engineer.
The 0800-1600 shift (Saturday-Sunday) will normally be comprised of, 1 warehouse material worker (moving packaged Carbon Black), 1 shift Operating Engineer, and 1 assistant engineer.
The 0800-1600 shift (Saturday-Sunday) will normally be comprised of, 1 warehouse material worker (moving packaged Carbon Black), 1 shift Operating Engineer, and 1 assistant engineer.
The 1600-2400 shift (Sunday-Saturday) will normally be comprised of , 1 warehouse material worker (moving packaged Carbon Black), 1 shift Operating Engineer, and 1 assistant engineer.
The 0000-0800 shift (Sunday-Saturday) will normally be comprised of , 1 warehouse material worker (moving packaged Carbon Black), 1 shift Operating Engineer, and 1 assistant engineer.
Ed and Nancy Drews – Consultants to ARC Waste Tires Inc. in providing strategic analysis for project development and have been involved in the tire recycling industry since the mid 1980's, before any states had legislation on waste tires. They have manufactured tire recycling equipment since 1990 and have acted as consultants on numerous successful civil engineering projects utilizing tire bales. Over the years they have attended and presented at many tire recycling conferences in the United States and Europe. They have followed and studied most of the various tire recycling technologies that have been implemented over the last 25 years and have seen technology improve to increase opportunities for successful tire recycling facilities.
The Company has the capability to expand quickly. The Adelanto location should be large enough to double output production. We are working with our suppliers to acquire additional supply chain North America wide in addition to Central and South America.
The Company can be expanded by:
- Seeking and identifying additional supply chain that acquires tires from retail centers and landfills. These suppliers would have a vested interest in the expansion project due to the eliminating of their land fill costs.
- Developing joint ventures with tire manufacturers to consume their scrap and improve returns for both companies.
- Developing partnerships with major tire manufacturers providing carbon black for their production
- Assist and help 3rd world countries with additional supply chains to oil and carbon black usages.
