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Tire Shredding

TOP WHAT SSI DOES WHY SSI WHERE TO START EQUIPMENT COSTS CONTACT SSI

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Basic things to know about the tire shredding business:

Getting PAID: You make money by being paid to take in whole tires as well as by selling your shredded tires. Dont think you will make money if youre not receiving cash for the whole tires. Permits: You will need a permit in order to process tires in your state or country. This typically means you will also need to carry certain amounts of liability insurance. Site Requirements: You will need to have a site for your new business identified before you can get a permit. Most operations are on an 2-3 acres (0.8 to 1.2 hectares). If you choose to have your processing operation inside, the ideal building would have a ceiling height of at least 25 feet (7.62 meters) and an area of 10,000 to 75,000 square feet (930 to 7500 square meters) depending on your operational throughput (number of tires processed per year) and the final output products you intend to make. Equipment Needs: It takes more machinery and will cost more per ton to make smaller products. The smallest size you can accomplish with one shredder is 2 minus TDF (40-50mm chips). If you want to make 1 (25mm) material, you will need at least two shredders. If you want to remove the steel from the rubber chips, you may need additional equipment. If you want to make crumb rubber or rubber granules, you will need more than just one machine to accomplish this task. Cost of Equipment: Tire shredding systems to make chips start at $500,000 USD. Tire shredders only start at $100,000 USD. You will not be able to make small chips with just a shredder. You will need a shredder, a screen and some conveyors to make chips, which is why systems are more expensive than shredders only. Transportation: Dont forget that it will cost you to transport both whole and shredded tires. Position your site accordingly. Budget Extras: You will need to include a budget for consumable parts and material handling equipment in your business planning phase. Many people forget this and it will cost them in the end. Also, it is good to plan at least 6-9 months worth of operating capital in initial budgeting because it may take that long to turn a profit as a start-up business.
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SSI Shredding Systems, Inc. | Wilsonville, Oregon USA | Tel: (503) 682-3633 | www.ssiworld.com | sales@ssiworld.com

Tire Shredding
TOP WHAT SSI DOES WHY SSI WHERE TO START EQUIPMENT COSTS CONTACT SSI

Thank you for your interest in SSI Shredding Systems, Inc. We have been building high quality shredding machinery since 1980 and tire shredding equipment has long been a primary market for our business. Weve created this information in an effort to provide you with the best support we can, and to try and help you to provide us with critical information we will need to help you select processing equipment to meet your project goals. With that in mind, here is a list of the most frequently asked questions. Please click on any of them to view our answers:

Section A: What does SSI do? Section B: How do I start my scrap tire business? Section C: Why are SSI shredders worth considering? Section D: What do tire chip production systems look like? Section E: All this other stuff is great, but, how much do these things cost? Ive been through all this information and I would like to get a quote*
* You need an Internet connection to answer the questionnaire

SSI Shredding Systems, Inc. | Wilsonville, Oregon USA | Tel: (503) 682-3633 | www.ssiworld.com | sales@ssiworld.com

Tire Shredding
TOP WHAT SSI DOES WHY SSI WHERE TO START EQUIPMENT COSTS CONTACT SSI

SECTION A: WHAT SSI DOES:


SSI offers a wide variety of solutions for people who want to process car, truck, aircraft, agricultural and OTR / Mining tires. Our focus has been to develop reliable, robust and easy-to-work-on equipment that will reduce whole tires down to chunks ranging in size from long strips to 1 or 2 (25-50mm) chips. We have systems that can process tires at rates ranging from 2 tons (200 car tires) to over 30 tons (3,000 car tires) per hour. Tires do not need to be debeaded in order to be shredded in our equipment. Here is our tire shredder lineup:

Here are some examples of tires after being processed through SSI shredders:

Single pass: 2-3 (50-75mm) wide strips 4-18 (100-450mm) long

Chips: 2 (50mm) chunks

SSI Shredding Systems, Inc. | Wilsonville, Oregon USA | Tel: (503) 682-3633 | www.ssiworld.com | sales@ssiworld.com

Tire Shredding
TOP WHAT SSI DOES WHY SSI WHERE TO START EQUIPMENT COSTS CONTACT SSI

SECTION B: HOW TO START A TIRE SHREDDING BUSINESS:


If youre just starting to think about getting into the tire shredding business, youll need to review the following steps BEFORE you start looking for a shredder. In fact, the shredding solution should be the last thing you look at when creating your business plan.

STEP #1: FIND YOUR NICHE.


Find out what you want to do with the tires after you shred them. Its easy to get paid to accept tires, but you need to have a solid outlet for the material before you can get into this business. Youll find out later in your research that the tipping fees you collect in accepting tires generally cover your overhead costs only, and your profit will come from your shredded material sales to an end market. (TDF, ground cover, soil stabilization, aggregate replacement material, crumb manufacturer, civil engineering applications, etc). Markets vary quite a bit depending on where you are located. A good resource for information on tire shred and chip uses, general market information and tire makeup information is the rubber manufacturers association web page. Its www.rma.org Here is a graphic display of the tire shredding markets in the US over the past 10 years:

STEP #2: LOCATION, LOCATION, LOCATION


Find a location and then see if you can collect at least 1,000,000 tires per year within a 150 mile radius of where you plan to start your business. If you cant do this, it will be hard to justify the capital equipment costs of shredding machinery and pay inbound material freight too. Choose your location wisely. It typically costs around $8-12 per ton per 100 miles (depending on fuel prices) to haul tires or tire chips. Once youve selected your location, you will want to contact the state about getting a processing permit. Each state has different requirements, and youll want to see what kind of costs are associated with getting legal before going any further.

** Theres more on the next page **


SSI Shredding Systems, Inc. | Wilsonville, Oregon USA | Tel: (503) 682-3633 | www.ssiworld.com | sales@ssiworld.com

Tire Shredding
TOP WHAT SSI DOES WHY SSI WHERE TO START EQUIPMENT COSTS CONTACT SSI

STEP #3: IT TAKES $ TO MAKE $$


Look into your finances. Tire shredding machines start at $115,000, and systems to make chips start at $500,000. Please see the price section to learn more about what this machinery costs. Besides the capital cost, tire shredding systems will cost between $12.00 (rough shred) upto $25.00 (chips) per ton of tires processed to operate (this includes power, preventative maintenance labor, consumable parts costs and labor to exchange consumable parts. It does not include facility or trucks, general overhead, depreciation of equipment, labor to load the machines or inventory spare parts). Many new processors are not profitable until they have been running for 9-12 months, so, make sure that your financing package is adequate to cover your costs for at least that amount of time.

STEP #4: LETS TALK ABOUT SHREDDING OPTIONS


Now youre ready to look for a shredder. In order to help us determine what machine is right for your application, please take the time to answer these questions for us: 1.What types of tires do you anticipate processing (e.g. passenger, truck, aircraft, agricultural, mining, etc.) ? 2. Do you have a specific size requirement ? (1" material is more expensive to produce than 2" or 3" is) 3. What do you think your material mix will look like (mostly car tires, car & truck, mostly truck, etc.) ? 4. Do you have any site or space constraints (building height, floorspace, etc)? 5. Do you have any power requirements or constraints ? 6. How would you like to feed a system ? (conveyor, grapple, front-end loader, etc) 7. What throughput rate (capacity) are you looking for ? (how many tons per hour, tires per day or trailers per day)? 8. What shift arrangement do you plan on (8, 12, 16 or 24 hrs per day) ? 9. Do you have budget requirements? What are they? 10. Where will your processing facility be located? Once we have your answers to these questions, we can help you to determine the best solution for your facility needs.

SSI Shredding Systems, Inc. | Wilsonville, Oregon USA | Tel: (503) 682-3633 | www.ssiworld.com | sales@ssiworld.com

Tire Shredding
TOP WHAT SSI DOES WHY SSI WHERE TO START EQUIPMENT COSTS CONTACT SSI

SECTION C: WHAT DO THESE SYSTEMS LOOK LIKE?: TYPICAL SYSTEM PHOTOS:

TYPICAL SYSTEM EXAMPLES:


5-7 Ton per hour system for 2 (50mm) chips

** Theres more on the next page **


SSI Shredding Systems, Inc. | Wilsonville, Oregon USA | Tel: (503) 682-3633 | www.ssiworld.com | sales@ssiworld.com

Tire Shredding
TOP WHAT SSI DOES WHY SSI WHERE TO START EQUIPMENT COSTS CONTACT SSI

12-15 Ton per hour system for 1-3 (25-75mm) chips

25-30 Ton per hour system for 2-3 (50 to 75mm) chips

SSI Shredding Systems, Inc. | Wilsonville, Oregon USA | Tel: (503) 682-3633 | www.ssiworld.com | sales@ssiworld.com

Tire Shredding
TOP WHAT SSI DOES WHY SSI WHERE TO START EQUIPMENT COSTS CONTACT SSI

SECTION D: WHAT MAKES SSI SHREDDERS GOOD?:


Versatility: It is very difficult to be selective in the business of shredding tires. You will receive small tires, large tires, radial tires, bias tires, agricultural tires and much more. Because of this, we recommend machines that are optimized for the application of truck & supersingle tire shredding (with no de-beading) and then sized to process tires at your desired throughput rate. The key in this business is keeping your consumable parts in good condition (the shredder cutters & cleaning fingers) so that they can make clean cuts on the material and stabilize your output product quality. Our truck tire shredders feature large diameter, solid cutters (22 to 33 diameter) so you will have a great deal of surface area to wear, which means they are long-lasting. Maintenance: We have incorporated some unique features into our machines that protect them and improve the useful lifespan of your investment, these include:

Patented ACLS system provides more inward force than the shredder can produce in outward force, which cannot be accomplished with the threaded clamp-nut designs found on many other shredder designs. The significance of this is that it keeps the cutters and spacers tight on the shafts, which not only improves cutter life but also minimizes the possibility for materials to work in-between the cutters and seize them to the shafts, making cutter set maintenance procedures much easier to complete.
Patented SSP system protects the shredders electric motor and gear reducer from catastrophic damage by acting like a clutch and allowing the motor output shaft to slip when there is an event that causes the shredder shafts to stop quickly, like a non-shreddable material in the cutting chamber. Slippage of the coupling (clutch) is monitored by the shredders PLC and the machine will reverse itself automatically if the coupling sensor detects too much slippage. Automatic reversing in conjunction with clutch slippage is done to both protect the shredder drive and to re-orient the material, which provides the shredder with a better chance of processing the material without additional clutch slippage. Proprietary cleaning fingers keep material from building up or wrapping between the cutters over the top of the spacers the shafts. In tire shredding applications, hardfacing material is applied to the cleaning fingers have proven to extend the useful life of these consumable parts by upto 40% depending on the shredder and processing conditions. SSI shredders also employ a floating cleaning finger design, which allows these parts to be re-used when cutter sets are exchanged or replaced individually if needed. Modular cutting chamber design: allows for removable and replaceable sidewalls in the event that you want to change the length of your shredder (i.e. reconfigure a primary shredder to become a chipping shredder) or if your sidewalls wear in time, you do not need to replace the expensive parts of your shredder frame. Water misting system is incorporated into the shredder hopper, and typically has 3-4 spray nozzles. It is plumbed to a single connection point so that it can be connected to a feeder hose. The purpose of this is system is to reduce dust during the dry months and also to lubricate the cutters and material, which can improve cutter life in a tire application by 20-30%.

** Theres more on the next page **


SSI Shredding Systems, Inc. | Wilsonville, Oregon USA | Tel: (503) 682-3633 | www.ssiworld.com | sales@ssiworld.com

Tire Shredding
TOP WHAT SSI DOES WHY SSI WHERE TO START EQUIPMENT COSTS CONTACT SSI

Unique bearing protection: SSI shredders employ a false wall design (we call them splashplates) that takes the impact and abrasion abuse produced by the material during the shredding process. These walls are set inward of the gearbox and endplate on the shredder by several inches. The open area between the splash plates and the bearing cavities is called the drop zone, which provides an area for any material that passes between the shaft and the gearbox or endplate wall to fall out of the bottom of the machine before reaching the bearing cavity. In the event that any material does make in into the bearing cavities, SSI has designed a proprietary labyrinth and mechanical seal arrangement that will prevent the material from reaching and damaging the bearings. Direct drive design: SSI does not use a mechanical gear reduction design inside of the shredder gearbox. Instead the gear reduction is accomplished via planetary gear reducer outside of the shredder gearbox, making field maintenance possible. In-direct designs, found on other types of shredders, require maintenance personnel to empty the shredder gearbox oil and dis-assemble key components just to gain access to the gears when they need inspection. This is a significant process and will require significant downtime to accomplish. By contrast, the SSI design incorporates a removable plate on the top of the gearbox and direct access to the drive and driven gears for inspection (without having to drain the gearbox oil or replace seals). Our larger shredders do not have any gears inside the shredder gearbox at all; gear reduction on that equipment is accomplished externally with planetary gear reducers. Cutter design: Cutter hook design and diameter are critical when building tire shredders. The hook design affects the shredders ability to grab, pierce and chop the tires. The diameter must to be adequate to create geometry in the cutting chamber that will optimize the shredders ability to capture the material as well as maximize useful component life. Improper shredder configurations can lead compression related componentry failures, which can happen when the thickness of the folded tire exceeds the distance between the sweep of the cutter and the opposing shaft. Other issues arising from improperly designed cutters include the inability of a shredder to grab hold of materials its trying to process and reduced cutter life-span. Control system: All of our systems include fully integrated controls that are driven by PLCs (programmable logic controllers) and most are modem equipped so that we can perform on-line diagnostics and troubleshooting from our factory in Wilsonville, Oregon. This gives you the ability to add equipment into our systems or change the operating characteristics of a system if you have a need to reconfigure a device (like your screen) or service a new end market. There is a common Operator Control Panel (OCP) that allows for single-button system starting and stopping. The OCP also includes AMP meters for the shredder motor(s) and a HMI screen to facilitate system maintenance and local diagnostic needs. Each component in a system can also be manually started in a maintenance mode if needed. The PLC monitors the shredders, motion of the conveyors and (in some cases) performance of the system. In addition, we can a tire counter on the feed conveyor (can be mounted on the conveyor or on the OCP) so that you can easily keep track of system performance. There are other components that are commonly used in conjunction with our shredders to complete a tire shredding system solution. These generally include conveyors, magnet(s) and screen(s). We can provide more information about our recommendation for these components after we understand your project needs because there are different combinations and configurations available to optimize specific application requirements (like particle size, footprint, throughput, etc.)

SSI Shredding Systems, Inc. | Wilsonville, Oregon USA | Tel: (503) 682-3633 | www.ssiworld.com | sales@ssiworld.com

Tire Shredding
TOP WHAT SSI DOES WHY SSI WHERE TO START EQUIPMENT COSTS CONTACT SSI

SECTION E: How much do these machines cost?:


While we need your answers to the questions listed in Section B, step 4 to provide you with pricing on the right equipment for your project, we are happy to provide this budgetary information for your information: Car Tire Shredders (Shredder only): These machines start at $100,000 and go up from there depending on how many tires you would like to shred per hour or per day. Youll need to feed them with a conveyor belt and you will probably need a conveyor to take the shreds away from the shredder. Conveyors are not included in this pricing. Truck Tire Shredders (Shredders only): These machines start at $235,000 and go up from there depending on how many tires you would like to shred per hour or per day, and what size truck tires youre looking to shred (supersingle too?). Youll need to feed them with a conveyor belt and you will probably need a conveyor to take the shreds away from the shredder. Conveyors are not included in this pricing. Industrial Tire Shredders (Shredders only): These machines start at $425,000 and go up from there depending on how many tires you would like to shred per hour or per day and what kind of tires youre looking to shred. You can feed them with a conveyor belt, grapple or front-end loader and you will probably need a conveyor to take the shreds away from the shredder. Material handling equipment is not included in this pricing. OTR & Mining Tire Shredders (Shredders only): These machines start at $700,000 for tires up to 7 in diameter and $1,350,000 for tires upto 14 in diameter. You will probably feed these shredders with a grapple or loader and you will probably need a conveyor to take the shreds away from the shredder. Material handling equipment is not included in this pricing. Chip production systems: Systems (shredders, conveyors and screens) to make 2 chips start at $500,000. Most of them are priced between $650,000 and $1,000,000 depending on how much volume you would like to process and also how the machinery needs to be configured to fit into your site. Please complete our questionnaire if you would like specific information on a system to meet your project needs. Please contact us at 503-682-3633 or sales@ssiworld.com if you have any questions. In order for us to be most helpful to you, please be ready to discuss the information youve found in this package. If youre ready to answer our questionnaire and get a quotation, please click here: EMAIL DAVE Here We appreciate your consideration and will look forward to working with you to define, justify and provide the best-possible solution for your exact project requirements. Thank you,

SSI Shredding Systems, Inc. | Wilsonville, Oregon USA | Tel: (503) 682-3633 | www.ssiworld.com | sales@ssiworld.com