South Africa’s Mathe Group has announced a significant new investment in clean steel extraction from end-of-life truck tyres. The project involves installing a steel cleaning mill, automated packaging lines, and advanced de-beading machines to recover high-value steel for export to India and South Korea. 

Investment Details & Strategic Implications

• Steel makes up around 30% of each radial truck tyre but has traditionally been a low-value byproduct. Mathe’s new process preserves the whole bead geometry, extracts it free of rubber, and reduces contamination from ~10% to under 2%. 
• The new equipment includes high-precision de-beading machines, a clean steel mill, and automated packaging, enabling steel to ship directly rather than going through external cleaning. 
• Once fully operational in January 2026, Mathe expects to export ~108 metric tons per week (~4 containers) of clean tyre-derived steel. 
• A key benefit: the process also boosts rubber recovery by ~8% per tyre, enhancing the overall yield of their recycling operations. 
• Export markets currently used: steel is shipped to India for cleaning, then to South Korea for industrial use in manufacturing (e.g., shipbuilding, autos). The new in-house cleaning initiative aims to reduce costs and increase higher-margin exports. 

This move uplifts what was once considered waste into a meaningful revenue stream while strengthening Mathe’s position in the global circular materials chain.

Mathe Group has made a multi-million-rand investment in new equipment to extract “clean steel” from tyres for export to India and South Korea.

Dr. Mehran Zarrebini, CEO of Mathe Group, states that the clean steel investment, which includes the installation of a new clean steel mill with an automated packaging line and several de-beading machines, will enhance earnings. Steel, which comprises 30% of each radial truck tyre, has been an unavoidable by-product that had to be removed before tyres could be reduced to rubber crumb for reuse. Now, this will become a valuable second income stream, ultimately increasing export earnings and generating additional job opportunities. 

Dr Zarrebini shared that when tyre recycling started in South Africa, the side walls of the tyres were cut off and sold for use in agriculture. Mathe Group introduced the current de-beading process in 2017, when the company moved to Hammarsdale. However, that process damages the geometry of the beads, making them difficult to bend, package, and sell.

The new machinery removes the entire bead free of rubber and keeps it intact, meaning that steel material is then utilised in blasting applications as a substitute for virgin steel. Dr Zarrebini says that the price gleaned from this material is three times higher than that paid for scrap metal, with the bonus of additional rubber removed, boosting the amount of rubber recovered from each tyre.

The new debearding machines will replace existing equipment, which is oil-driven and costly to maintain, reducing both emissions and operating costs. “We are looking at material that could be potentially used in the local steel market, which is under huge pressure. Right now, no steel extracted from tyres is sold locally,” Dr Zarrebini explains.

Currently, the company ships the extracted steel to India, where it is cleaned before being shipped to South Korea, where it is used in the manufacture of goods such as ships and motorcars. The cleaning process will now take place in the company.

Dr Zarrebini says that the installation of a steel cleaning mill, which will reduce the rubber contamination from the current 10% to less than 2%, is part of a broader redesign of the production process and will include an in-built packaging line which will bag the steel and deposit it into an awaiting shipping container, which is then trucked to the Durban port. Increased capacity at the plant will enable 108 tons (or a minimum of four containers) to be shipped from Hammarsdale each week.

“The new steel processing system cuts a lot of cost from the system and adds both efficiency and a further 8% of rubber crumb to the process. Although steel wasn’t initially Mathe’s main income stream, with the escalating cost and complexity of doing business, it has become an important part of the business,” he explained.

The steel extraction equipment is expected to be fully operational by January 2026.

Learn more:

• Tire Pyrolysis Project
• Pyrolysis Oil Fuel Credits
• Tyre Pyrolysis Guide
• Plastic Pyrolysis Solutions
• Tire Pyrolysis Plant Setup

Turn Byproducts into Profits: Partner with Klean for Strategic Growth

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Mathe’s shift to extracting clean steel is a powerful example of transforming what was once waste into an export-grade commodity. Klean Industries offers deep expertise in process design, circular integration, market strategy, and execution to help you replicate or partner in such initiatives.

Klean’s Value in Steel Recovery & Tyre Recycling:

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With Klean’s domain experience in circular systems, your recycling or material-refining projects can unlock new revenue frontiers and lead the sustainable industry.

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