If you are thinking of investing in a new business focused on tire recycling, you need to perform a business analysis allowing you to work out whether it is a profitable business or not. In this article, we are going to discuss the main parameters that need to be taken into account for analyzing the tire recycling business profit and how you should go about performing this analysis.
In order to perform business analysis, you need to consider the cost of raw materials, the cost of operations, and the money you can generate from selling the end products. When it comes to tire recycling business, you should know that the products produced by this process include carbon black, pyrolysis oil, steel wire as well as some combustible gases. The gases are typically re-routed to power the pyrolysis chamber and the main profit comes from selling pyrolysis oil as well as carbon black. There are 2 ways to sell pyrolysis oil. You can sell it as it is or you can distill it into diesel oil. Carbon black is also in high demand and can be used in multiple industries.
As far as the main expenses are concerned, the major part of the overall cost of a tire recycling plant is the pyrolysis plant cost. You can find different tyres of pyrolysis machine for sale China on the market. In short, pyrolysis plants differ in terms of efficiency, power consumption as well as technology in use to capture me pollutants produced during the pyrolysis process, among other things.
All these factors have a huge bearing on the profitability of your tire recycling business. Therefore, you need to choose the pyrolysis plant carefully after taking into account the guidelines for pollution in your location as well as the availability of type of fuel used for powering the pyrolysis plant, and other such things.
In terms of operational cost, you will need to work out the cost of raw materials in your location. The majority of the cost of raw materials will go into the cost of acquiring and processing of waste tires. Since you are going to need huge quantities of waste tires regularly, it is important for you to sign up contracts with suppliers. The other major expense is the cost of fuel.
The cost of fuel will depend on the type of Beston pyrolysis plant you have purchased as some plants are powered by electricity whereas others use LPG or diesel oil. The last major component that will have a huge impact on the profitability of your plant is the cost of labor. The cost of all these things will depend on your location. In some regions, electricity is cheap but labor is expensive whereas in other areas, labor is cheap but fuel costs a lot of money. But for Beston pyrolysis plant can recycle the combustible gas as fuel produced during the pyrolysis process. In this way, you can save some money on fuel.
Once you have figured out the cost of raw materials and labor, you will need to work out the money you can generate from selling the pyrolysis oil as well as carbon black and steel wire generated from the pyrolysis process. You will need to do a cost benefit analysis on selling pyrolysis oil or processed diesel oil generated from distillation of pyrolysis oil.
There are several such examples present online where you can get a rough idea of the profit you can generate if you are able to process a certain amount of waste tires each day and are able to sell all of the end products generated from the pyrolysis process. Needless to say, the cost varies in each region, and the end product is also likely to be priced differently in each region. So, perform business analysis for your location and get started on creating a tire recycling business plan.
Overall, a tire recycling business is a profitable opportunity and this is why a number of tyre pyrolysis plants are beings set up all around the world. The most important thing that matters in this industry is the technology used for pyrolysis process as it affects the output, operating costs as well as labor efficiency. So, keep the above-mentioned tips in mind in order to prepare a solid business plan for your tire recycling business. More details: https://bestonasia.com/pyrolysis-plant/is-pyrolysis-plant-profitable/.