The New Life of Rubber Tires: How a Company's Business Move Can Help Reduce Rubber's Impact Michael R. Barr, Alicia M. Case & Duy L. Nguyen January 2013 M.Sc. in Sustainability Management | SUS 603 - Sustainable Innovation National University Rubber tires account for a larger source of waste in landfills and scrapyards in the United States. Technology has developed to turn rubber tires into “crumb” rubber to be used in other industries, including in asphalt for road creation. Before the 1960s, scrap tires were not as much of an issue. Tires were made of a combination of materials including natural rubber that had the ability to be reclaimed. When the industry began making tires out of synthetic rubber the waste stream increased. Liberty Tire Recycling is a company that was formed to take advantage of the large rubber waste stream and turn it into a useful, profitable product. Formed by CEO Jeffrey Kendall with two partners in 2000, Liberty Tire Recycling dominates the reclaimed rubber market. Mr. Kendall’s goal is to continue to grow the company even through tough economic times by adapting and increasing the number of uses for the scrap and crumb rubber the company breaks down. One of these uses is in asphalt paving which makes for quieter, more sustainable roads. Liberty Tire Recycling is taking an active role in educating governments and municipalities on the use of crumb rubber in an attempt to grow their business.

1. The New Life of Rubber Tires:
How a Company’s Business Move Can Help Reduce
Rubber’s Impact
Michael R. Barr, Alicia M. Case, & Duy L. Nguyen
National University
SUS 603 Sustainable Innovation

2. Introduction
• Liberty Tire Recycling and its role in the
Scrap Tire collection and processing
industry
• CEO Jeffrey Kendall
• Scrap Tire Problems and History
• Strategic Intent
• Progress, Challenges and Opportunities
• Case Questions

3. CEO Background
• Created in 2000 by CEO Jeffrey Kendall and
partners Donald Rea and Andy Russell
• Purchased 2 North Carolina scrap tire recycling
companies
Jeffrey Kendall, CEO

4. CEO Background
• Graduated cum laude from the University of Pittsburgh with a
law degree
• Worked for several years in the solid waste and recycling
industries
• Quoted as saying “At Liberty Tire Recycling, we are always
looking at ways to develop productive partnerships that lead
to the recovery and recycling of more scrap tires across North
America.”
Jeffrey Kendall, CEO

5. Current Scrap Tire Problem
• U.S. generates more than 285 million scrap tires annually
("Scrap tires and," 2013).
• About 78% discarded tires are landfilled, stockpiled, or
illegally dumped while remainder exported (Kemkar).
• Tires left outdoors collect water and create breeding sites
for mosquitoes, which carry West Nile virus (Madrid, 2011).
• Tire piles pose special fire hazard due to synthetic rubber’s
petroleum by-product content.
• Extreme heat from fire liquefy tires, releasing hydrocarbons
and other contaminants to the ground and even ground
water (“Scrap tires and,” 2013).

6. History of Scrap Tire Problems
• Before 1960’s, tires were made from natural rubber that can
be devulcanize when heated strongly, but is perfect for rubber
reclaiming (Kemkar).
• Reclaiming rubber process was effective and profitable,
hundreds of reclaiming facilities opened in the U.S.
• World War II necessitated the development of synthetic
rubber (Kemkar).
• Synthetic rubber was cheap and extended treadlife (Kemkar).
• No commercial operations for tire rubber reclaiming
domestically by 1996 (Kemkar).

7. History of Scrap Tire Problems
• Retreading tires used to be the norm prior to 1980’s
• Introduction of all-season tires and steel-belted
radial ply tires eliminated the need for retread
(Kemkar).
• New tires design did not allow retread.
• Low-cost and new radial ply tires from Asia priced at
levels close to the price quality of retreaded casings
(Kemkar).

8. Strategic Intent
• Become a pioneer in North America’s scrap
tire processing and recycling sector.
– Buy-and-Build Strategy
• Established a nationwide network of 40+ Collection
and Processing Facilities over 12 years
• Infrastructure helps in management of logistic
costs; ensures cost competitive offerings
• Effectively serve a larger number of customers

9. 22 Years of Scrap Tire Recycling Progress

10. Challenges and Opportunities
• Involves economic, governmental, and
social factors in growth of rubber asphalt
and crumb rubber material markets
– Continue acquisition strategy
– Recycled rubber poses no EH&S hazards
– Education and encouragement of
government entities to procure recycled
content products

11. Case Study Questions
• How will Mr. Kendall expand the asphalt
rubber market?
• What additional technologies are necessary for
Liberty Tire Recycling to adopt?
• What external suppliers/distributors will
Liberty Tire Recycling have to work with to
increase their production?

12. References
• Kemkar, N. (n.d.). The scrap tire problem in Rhode Island: Analysis and
recommendations. Unpublished manuscript, A.B. Environmental Studies, Brown
University, Providence, RI, Retrieved from
http://envstudies.brown.edu/theses/01Kemkar.pdf.
• Madrid , D. (2011, March 27). Maricopa county, state seeing an increase in illegal tire
dumping read more: httpmaricopa-county-increase-illegal-tire-dumping. Retrieved
from http://www.azcentral.com/news/articles/2011/03/27/20110327maricopa-
county-increase-illegal-tire-dumping.html.
• Nixon, A. (November 22, 2011). Tire recycler finds success forging new roads for
rubber. Pittsburgh Tribune-Review, 1-2.
• Scrap tires and environmental issues. (2013, January 26). Retrieved from
http://en.wikipedia.org/wiki/Tire.
• Taylor, B. (December 28, 2010). Mass Production. Recycling Today, 1-6.
• U.S. scrap tire management summary 2005-2009. In (2011). Washington
DC: Rubber Manufacuturers Association. Retrieved from
http://www.rma.org/scrap_tires/