The economics of tire remanufacturing

The world market for tires is described to identify the current material flow from raw materials to tires and the used tire disposal problem. Then, I describe the value-adding operations in the tire production process and in the tire retreading process. Once retreading is identified as the only recovery alternative that maximizes tire utilization, I explain why heat generation is the only recovery alternative, when retreading is not technically feasible. The economic values of heat generation in electric plants and in cement kilns are discussed. The paper culminates with the case of retreading, the tire remanufacturing process and the recommendation of a simple decision rule for selecting the number of times a tire should be retreaded to maximize its utilization.