Federal
Recycling Technologies, Inc.
3750 West Main Street Suite AA
Norman, Oklahoma 73072
Description
This document provides an overview of a tire recycling project as it
relates to an
owner/ operator of that project.
The project
will require approximately $26.3 Million in Capital with annual
earnings on an
EBITDA basis of $18,905,067 (Earnings Before Interest, Taxes,
Depreciation,
and Amortization)
In brief, we have taken a proven tire recycling technology, applied
advanced systems
control for quality control and enhanced the properties of the product
stream to produce two
high grade commodity products: carbon black similar to N-326 and a
solvent oil with the
properties of ASTM 104A. The applied technology is commonly used
in petroleum refining
and cosmetics manufacturing.
Our technology recovers approximately 6 pounds of a commodity grade
carbon black and
1.3 gallons of a commodity grade plasticizer (solvent) oil from each
scrap tire. Annual plant
capacity, operating at 80% uptime, will be approximately 8,136 tons of
carbon black and 3.7
million gallons of plasticizer oil.
As we proceed in marketing this technology, our goal is to make the
process of recycling
scrap tires completely free of any dependence upon governmental subsidy
support. Since
just about every state has tire recycling activity (mainly confined to
shredding of tires) the
raw material (shreds) may be purchased on the open market at prevailing
prices. However,
tires can be shredded at the plant and receive approximately $20.00 per
ton in tipping fees.
For raw material quality control, we prefer on-site shredding
operations.
Our process breaks down the polymer structures in the rubber to allow
us to produce high
grade commodities: carbon black and a water-white solvent
(plasticizer oil).
In brief, processing costs are estimated at $456 per ton, the commodity
products have net
revenue of $1,131 per ton of shreds. The net operating profit is
$675 per ton, excluding taxes
and debt service.