California Waste Board Awards Loans to Tire Recyclers

The California Integrated Waste Management Board awarded two recycling market development zone loans to two tire recycling firms in California.

B.A.S. Recycling of San Bernardino, the state's largest crumb rubber producer, was awarded a loan for $1,518,750 to purchase equipment for ambient grind equipment. 

Currently, the company uses a cryogenic technology that requires freezing the tires-or tire shreds-with liquid nitrogen before reducing them into crumb.  That technology works best with large truck tires as feedstock.  The ambient grind equipment will allow the company to expand their recycling to include passenger and light truck tires. 

Additionally, the loan will allow B.A.S. to upgrade their electrical system to handle the new equipment.

With the new equipment, it is expected that B.A.S. will be able to increase their recycling by an additional 600,000 PTEs annually, to 3,060,000 PTEs each year.

The loan will fund about 75 percent of the project cost.

U.S. Rubber Recycling, Inc. of Riverside-a company that buys crumb rubber to manufacture mats, molded tiles and continuous roll flooring-was awarded a loan of $700,000.  Although most of the loan is for traditional purchase of equipment, $200,000 of the loan goes to marketing, including a campaign to "buy California crumb rubber" in a large circulation newspaper or magazine that will show a recycled tire rubber floor with a "Certified Grade A California Rubber" seal across it.  This is a unique and highly creative use of the loan program.

With the rest of the loan, U.S. Rubber Recycling will purchase a new Bandknife Peeling Machine R-14, purchase crumb rubber, increase the firm's inventory and carry increased accounts receivable.

Both are also currently seeking Tire Product Commercialization grants that will complement the loans and enhance their ability to grow in this sometimes difficult and highly competitive recycling industry.