RPM Automotive tire recycling efforts in Melbourne mark a significant leap forward for Australia’s sustainable materials sector, addressing growing end-of-life tire volumes with advanced processing technologies.

RPM Automotive Group hopes to help reduce nationwide end-of-life tyre wastage with the opening of a $4 million recycling facility in suburban Victoria and the launch of an associated tyre recycling programme

RPM is Australia’s leading automotive parts distributor and imports commercial vehicle tyres, which it sells through a network of outlets throughout Australia.

The tyre recycling development will utilize reverse logistics, as well as source tyres from the open market.

The Stage 1, 3,500-square-metre facility is currently processing more than 180 tonnes of used tyres per week and has the scope to increase this to more than 300 tonnes per week. At full capacity, the recycling facility will enable RPM to capture around 5 percent of the national market share.

RPM is ramping up its recycling program, which aims to address a critical environmental challenge by repurposing tyres that would otherwise end up in landfills. The programme will leverage the company’s existing distribution network and customer base to collect and recycle up to 54,000 tonnes of end-of-life tyres within the next five years.

The company plans to create recycled rubber-based products from scrap tyres for use in applications such as road infrastructure and as a low-grade diesel fuel for industrial kilns, mills, and power plants.

The ban Australia’s federal government placed on the export of waste or scrap tyres in December 2021 has increased demand for domestic sustainable solutions.

RPM’s recycling program aims to address end-of-life tyre waste, where a significant gap remains between the volume of waste produced and the amount successfully recovered.

RPM comprises several businesses involved in tyres, mechanical repairs, motorsport apparel and safety equipment, niche manufacturing, and a roadside assistance service for the transport industry.

The company launched a $4 million capital campaign to primarily fund Stages 1 and 2 of its tyre recycling program.

 The two-tranche placement issued approximately 56 million new fully paid ordinary shares at $0.072 each, along with an equal number of free-attaching options.

RPM has reported improved performance in the three months to the end of March, driven by the normalisation of trading conditions, better buying, and strong demand for its product range. The company recorded sales revenue of $89.9 million for the period, representing a 1.4 percent increase over the previous corresponding period. EBITDA for the quarter was up 8.2 per cent on the last period to $9.5m. Positive outlook, Chief Executive Officer Clive Finkelstein said the business outlook remained positive.

“Our focus this quarter has been on our tyre recycling business, which offers an exciting growth avenue and which we are confident will exceed original processing forecasts,” he said. “I am also pleased to report that our traditional businesses continue to perform in line with forecast projections.”

Learn more:

• Tire Pyrolysis Plant in Australia
• Recovered Carbon Black Use Cases
• Circular Economy Projects
• Australia Tire Recycling Leadership

Australia’s Circular Tire Economy is Accelerating — Are You Onboard?

With the launch of RPM Automotive’s new facility, tire recycling in Australia has taken a giant step forward, but it’s only part of the solution. At Klean Industries, we engineer full-circle recovery ecosystems that transform waste into valuable commodities, such as recovered carbon black and renewable fuels.

Let’s build a better future — together.

Contact us today to integrate pyrolysis, hydrogen infrastructure, or advanced sorting systems into your regional tire recovery strategy » GO.