Tire shredding: From scrap to profit in 5 steps

Article updated October 10, 2025

Ever wondered what happens to those towering piles of old tires in junkyards? Tire shredding is a vital process that not only helps in managing tire waste but also opens up numerous business opportunities. For those in the recycling industry or owners of junkyards, tire shredding offers both environmental and economic benefits. By transforming scrap tires into reusable materials, we can address the growing problem of tire waste while generating significant revenue.

In recent years, advancements in tire shredding systems and recycling equipment have made it easier for operators to process large volumes of whole tires efficiently. From passenger car tires to off-road and truck tires, modern dual-shaft and high-torque shredders can handle a wide range of materials with minimal downtime. These innovations have turned tire recycling into one of the most profitable sectors of the broader solid waste industry.

What is Tire Shredding?

Tire shredding involves cutting end-of-life tires into smaller pieces, making them easier to manage, recycle, or repurpose. This process is essential for efficiently recycling tires and preparing them for further processing into various products like rubber crumb, steel, and fiber. Shredded tires have multiple applications, from playground surfaces to energy generation, making this process both environmentally sustainable and economically viable.

Industrial tire shredders are designed to perform heavy-duty size reduction using sharp, durable blades and high-capacity motors. These shredders can process thousands of tires per hour, depending on the throughput capacity and system configuration. The resulting tire chips or TDF (tire-derived fuel) can then be used in cement kilns, pulp and paper mills, or power plants as a cost-effective energy source.

For facilities seeking fine material, further processing through granulators, grinders, or cracker mills produces crumb rubber, a high-quality rubber product used in various applications such as running tracks, playground surfacing, and rubberized asphalt.

The Benefits of Having a Tire Shredding Business

Environmental Benefits

• Waste Reduction: Shredding significantly reduces the volume of tire waste, making it easier to manage and dispose of, helping to reduce the strain on landfills.
• Resource Conservation: Recycled tire materials can be reused in new products, reducing the demand for virgin resources and minimizing environmental degradation.
• Pollution Control: Proper tire disposal through shredding minimizes the risk of fires and reduces environmental pollution, such as toxic emissions from burning tires.

By diverting rubber tires from landfills, shredding operations also contribute to better solid waste management. Shredded tires take up significantly less space and can be repurposed into construction fill, mulch, or aggregate for civil engineering projects like retaining walls and embankments.

Economic Benefits

• Revenue Generation: Selling shredded tire materials like steel and rubber can be highly profitable, providing a consistent revenue stream.
• Market Expansion: The demand for recycled tire products in industries such as construction, manufacturing, and energy is growing, offering expansion opportunities.
• Cost Savings: Recycling tires can be more cost-effective than traditional disposal methods, such as landfilling, due to lower processing costs and the potential for material resale.

Businesses that invest in tire shredding equipment benefit from flexible product outputs. Depending on the shredding solution used, operators can sell clean steel wire, TDF, or fine crumb rubber, each commanding different market prices. The ability to produce multiple grades of recycled material helps maintain profitability even when one market segment fluctuates.

Additionally, tire recycling plants can qualify for local or federal sustainability incentives, reducing startup costs and encouraging eco-friendly operations.

The Process of Tire Shredding

1. Collecting and Sorting Tires

The first step involves gathering tires from sources like gas stations, auto shops, and junkyards. The tires are then inspected for contaminants and sorted based on type. Collection may also include large off-road or agricultural tires, which require high-torque, dual-shaft shredders to handle thicker rubber and steel reinforcement. Using conveyors and classifiers helps streamline the intake and sorting process, reducing manual labor and increasing throughput.

2. Removing Steel Wires

Before shredding, the steel wires embedded in the tires must be removed through a process known as debeading. Specialized machinery extracts the steel, which can then be sold as scrap. Wire removal ensures that the tire shredding system operates efficiently without damaging cutting blades. It also allows clean separation of high-value recyclable components, such as steel wire and textile fiber, which can be resold to metal recyclers and manufacturers.

3. Primary Shredding

In this stage, tires are cut into large shreds using primary shredders. These machines operate at low speeds but with high torque, effectively handling tough rubber material. Low-speed industrial shredders, often dual-shaft or quad-shaft in design, can process entire truck tires or heavy-duty off-road tires without pre-cutting. The resulting tire chips typically range from 2 to 6 inches, depending on screen size and cutting configuration. This step forms the backbone of any tire recycling system.‍

Tire shredding machines for sale from Machinery Partner

4. Secondary Shredding‍

Secondary shredders, or graters, further reduce the size of tire shreds into smaller chips, preparing the rubber for recycling into products like rubber crumb and matting. At this stage, material passes through granulators or chipping shredders that refine the rubber to consistent particle sizes. Some facilities integrate classifiers to separate fine rubber particles from coarser chips, ensuring quality control for downstream recycling processes.

5. Screening and Cleaning‍

The final stage involves screening the shredded rubber to remove contaminants and ensure uniform size. The cleaned rubber is then ready for packaging and sale. Advanced tire shredding systems include magnetic separators and dust collection units to extract remaining wire fragments and textile fibers. Clean, uniform rubber output can then move to secondary recycling or be sold directly to manufacturers producing rubber mulch, mats, or TDF.

Olnova VB DK 95 Shredder that supports tires

The Olnova VB DK 95 and similar mobile shredders are designed for high-capacity tire processing and durability. Their robust cutting chambers and automated feeding systems make them ideal for continuous operation in industrial environments.

Types of Tire Shredding Machines

• Slow-Speed Shredders: Designed for rough shredding, these machines are ideal for initial size reduction and can handle heavy-duty tires. Check out Machinery Partner’s range of tire shredding machines. These low-speed, high-torque machines are the workhorses of tire recycling. They’re capable of processing everything from passenger car tires to large industrial or off-road tires. Because they generate less heat and friction, they provide long blade life and lower operating costs, making them an efficient size reduction option for continuous use.
• Wire Liberator Systems: These systems focus on separating steel wires from the rubber during the shredding process, producing clean rubber free from metal contaminants. Wire liberation improves product quality and ensures that downstream granulators and grinders operate efficiently without blade damage. Many advanced shredding systems integrate automatic wire removal units to reduce downtime and labor requirements.
• Granulators: Granulators further process shredded rubber into smaller granules, used in products like playground surfaces and rubberized asphalt. High-speed granulators and rubber grinders break down tire chips into fine crumb rubber particles that can range from 10 mm down to less than 1 mm. The consistency of these granules is essential for producing uniform, high-quality rubber products for various applications.
• Cracker Mills: Used in the final stage of recycling, cracker mills produce fine rubber powder from granulated rubber, used in applications like coatings and adhesives. Cracker mills are particularly effective for producing ultra-fine rubber used in asphalt modification, sports turf, and molded rubber goods. Their strong rollers provide consistent size reduction and durability for long-term industrial use.

Together, these machines form an integrated tire shredding system that supports high-capacity, cost-effective, and sustainable tire recycling operations.

Starting a Tire Shredding Business

Steps and Considerations

• Research and Planning: Conduct thorough market research to understand the demand for shredded tire materials and identify potential customers.
• Business Plan: Develop a detailed business plan outlining goals, target market, and financial projections.
• Equipment Selection: Choose the right tire shredding machines based on your business needs and budget. When selecting tire shredders or recycling equipment, consider throughput capacity, maintenance needs, and the types of materials you plan to process. Dual-shaft and mobile shredders offer flexibility for facilities handling mixed scrap tires, while stationary shredders are ideal for large-scale, fixed-site operations.
• Regulatory Compliance: Ensure compliance with local environmental regulations and obtain necessary permits.
• Marketing and Sales: Develop a marketing strategy to promote your services and attract customers.

Successful operations also rely on efficient conveyors and classifiers to move material between stages, maximizing throughput while minimizing manual handling. Integrating modern automation systems can reduce downtime and improve overall productivity.

How Much Can You Make Shredding Tires?

The profitability of a tire shredding business depends on factors like raw material costs, processing efficiency, and market demand. On average, businesses can earn $1 to $40 per tire, depending on the quality and quantity of shredded materials produced. Not to mention that it could save the (up to) $100 dump fee per tire that some states are now charging for landfill.

Profit margins also vary based on how far you go in the tire recycling process. Businesses that simply shred tires into chips may have lower profit per unit but higher throughput, while those investing in granulators and cracker mills can command higher prices for crumb rubber and fine powders.

Revenue Per Tire

• Average Earnings: On average, a tire shredding business can earn between $1 to $5 per tire for standard tire shredding services.
• High-Value Recycling: If the business also processes the shredded tires into high-value products like rubber mulch, crumb rubber, or tire-derived fuel (TDF), earnings can increase significantly, potentially ranging from $10 to $40 per tire.

TDF is especially popular as an alternative fuel in cement kilns and industrial boilers because of its high BTU value and consistent burn rate. Rubber mulch and crumb rubber, on the other hand, serve long-term consumer and municipal markets with steady demand.

Annual Revenue Estimates

• Small-Scale Operations: For a small-scale operation processing 1,000 tires per day
  • If earning $3 per tire, the daily revenue would be approximately $3,000.
  • Annually, assuming 250 working days, this would result in a revenue of about $750,000.
• Medium to Large-Scale Operations: For a medium to large-scale operation processing 5,000 tires per day
  • At $3 per tire, the daily revenue could be $15,000.
  • Annually, this could generate around $3.75 million.

These estimates highlight how scaling capacity directly impacts profitability. High-capacity shredders, durable cutting systems, and efficient conveyors make it possible to process more material with less downtime.

Best Markets for Selling Shredded Tire Material

• Construction Industry: Rubber crumb and granules are used in road construction and building materials.
• Playground Surfaces: Shredded rubber is popular for creating safe, durable playground surfaces.
• Automotive Industry: Recycled rubber is used in manufacturing new tires and automotive parts.
• Energy Sector: Tire-derived fuel (TDF) is an alternative energy source for industrial applications.

Other emerging markets include civil engineering projects using tire-derived aggregate (TDA) for lightweight fill, sound barriers, and drainage systems. These versatile applications demonstrate how tire recycling can support multiple industries beyond traditional rubber goods manufacturing.

Costs of Tire Shredding Machines

The cost of tire shredding machines varies based on their capacity, features, and brand. Entry-level machines for small-scale operations can cost around $150,000, while high-capacity industrial machines can cost upwards of $500,000. Selecting a machine that meets your specific business needs and budget is crucial for operational efficiency.

When calculating costs, consider not only the initial investment but also long-term maintenance, blade replacement, and power consumption. Many modern shredders feature modular designs for easy serviceability, reducing downtime and increasing uptime. Choosing a cost-effective yet durable solution ensures consistent performance in demanding recycling environments.

Tire shredding machines for sale from Machinery Partner

The Future of Tire Recycling and Shredding

Innovations and Sustainability

The tire recycling industry is continuously evolving, with new technologies and innovations emerging to improve efficiency and sustainability. Promising advancements include:

• Advanced Shredding Techniques: New technologies are making the shredding process more efficient and cost-effective.
• Circular Economy Models: Businesses are adopting circular economy principles to create closed-loop systems for tire recycling, minimizing waste and maximizing resource use.
• Sustainable Materials: Research into eco-friendly materials derived from recycled tires is ongoing, aiming to reduce environmental impact further.

Future systems are also focusing on full recycling integration, connecting shredders, granulators, and classifiers into one continuous recycling line. These automated systems improve throughput and reduce labor while ensuring consistent quality control for various rubber products.

Environmental Impact of Tire Recycling

Tire recycling plays a crucial role in mitigating environmental damage by significantly reducing landfill waste and lowering carbon emissions. Tires are notoriously difficult to decompose, often taking hundreds of years to break down, and they occupy valuable landfill space. By recycling tires, we can repurpose their materials for new uses, such as playground surfaces and rubberized asphalt, thereby conserving natural resources and reducing the need for raw material extraction.

Every ton of recycled tires prevents nearly a ton of carbon emissions compared to producing new rubber products. In addition to conserving raw materials, tire recycling also reduces the pollution associated with illegal tire dumping and open-air burning.

Additionally, tire recycling contributes to lower carbon emissions. Producing new tires from raw materials typically involves substantial energy consumption and generates significant greenhouse gases. In contrast, using recycled tire materials requires less energy and results in fewer emissions. Conducting a lifecycle analysis comparing recycled tires with new materials can further highlight their sustainability benefits.

Industry Challenges

The tire recycling industry faces several challenges. One major challenge is the constantly evolving regulatory landscape. Governments may introduce new environmental regulations that affect tire recycling processes and technologies. Staying informed about these changes and adapting business practices is essential for compliance and maintaining a competitive edge.

Competition within the tire recycling market is another significant hurdle. As more businesses recognize the financial and environmental benefits of recycling, the market becomes saturated, intensifying competition. Innovating and differentiating services can help businesses stand out.

Moreover, fluctuating market demands for recycled rubber products can impact profitability. Entrepreneurs need to conduct thorough market research and develop flexible strategies to overcome these challenges effectively.

To maintain profitability, operators must monitor raw material prices, recycling equipment costs, and demand for end products such as crumb rubber, rubber mulch, and TDF. Strategic partnerships with construction and energy sectors can stabilize sales and create long-term revenue channels.

Community Engagement

Engaging with local communities and raising awareness about the benefits of tire recycling can greatly enhance a business's reputation. Building partnerships with local organizations, such as environmental groups or schools, can facilitate community involvement in recycling initiatives, contributing to a greater collective impact.

Community-focused programs like tire collection drives or educational workshops can also secure a consistent supply of scrap tires for recycling businesses. These initiatives build goodwill and help sustain operations while promoting environmental awareness.

Educational initiatives, such as hosting workshops or seminars, can educate the public about the importance of tire recycling. These efforts not only increase community support but also help drive consumer demand for recycled products. Participating in local fairs and exhibitions can further bolster a business's presence and demonstrate commitment to environmental stewardship.

Future Market Trends in Tire Recycling

The tire recycling industry is poised for growth, driven by emerging trends and technological advancements. Innovations in recycling processes, such as improved shredding technologies or more efficient separation techniques, can increase the quality and quantity of recycled materials, expanding their applications across industries.

Mobile shredders are also gaining popularity, allowing operators to bring tire shredding directly to collection sites. This flexibility reduces transportation costs and opens new business models, such as contract-based or regional tire processing.

The demand for recycled materials is rising, particularly in construction, manufacturing, and fashion. Businesses that capitalize on these trends by identifying new market opportunities and adapting to industry needs will gain a competitive advantage. The global push towards sustainability and circular economies enhances the appeal of recycled tire products, with companies that prioritize environmental responsibility likely to experience increased support from both consumers and regulatory bodies.

Staying informed about technological advancements and market dynamics will help tire recycling businesses remain agile and proactive in seizing new opportunities, ultimately driving the industry's growth and sustainability.

Conclusion

Tire shredding offers a sustainable solution to the growing problem of tire waste. By transforming scrap tires into valuable materials, businesses can contribute to environmental conservation while generating revenue. If you're considering starting a tire shredding business, now is the perfect time to explore this opportunity.

With the right tire shredding equipment and a solid recycling system in place, even small operations can turn scrap tires into a profitable and scalable business model. From TDF to crumb rubber, each product represents a unique opportunity to create value from waste.

Ready to make a difference in the tire recycling industry? Contact us to learn more about how we can help you get started with the right equipment and support.

References

1. Smith, J. (2022). *The Economic Impact of Tire Recycling*. Recycling Journal, 15(2), 123-134.

2. Environmental Protection Agency. (2023). *Tire Waste and Recycling Facts*. Retrieved from [EPA website](https://www.epa.gov/tire-recycling).

3. Green, L., & Miller, P. (2021). *Advances in Tire Shredding Technology*. Journal of Sustainable Materials, 8(3), 98-109.

4. Brown, A. (2023). *Circular Economy and Tire Recycling: A Future Perspective*. Global Recycling Magazine, 19(1), 45

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