What should you pay attention to when investing in a waste tire refining project?

Thanks to relatively low environmental protection standards, low procurement costs for waste tires, and policy support like government subsidies, waste tire-to-oil refining projects can yield substantial profit margins locally. That said, for anyone looking to set up such a refinery, there are several key considerations to weigh carefully. Below are some aspects to keep in mind:

● Market Demand

First, research local market demand and pricing for tire pyrolysis products. Choosing an industrially developed area for a waste tire-to-oil project is especially critical. In regions with underdeveloped industries, refined fuel oil will have limited uses, making sales a major hurdle. Before investing, therefore, thoroughly assess the local industrial structure and energy needs to ensure products sell smoothly and yield reasonable profits.

● Raw Material Supply

Next, assess the current stock and growth potential of waste tires in your target area to secure steady supply. Many investors wrongly rule out regions with hard-to-source tires or underdeveloped supply chains. Yet this can be an advantage: a mature acquisition chain often means more middlemen, pushing up prices. Instead, visit local/nearby auto repair shops, tire processors, and vehicle dismantlers. Checking multiple outlets helps find cost-effective suppliers and secure partnerships.

● Laws and Regulations​

Finally, ensure your waste tire-to-oil project meets local environmental and waste disposal rules, and secure required credentials (e.g., business licenses, waste tire recycling permits). Environmental rules vary by location. Before entering a new market, understand and follow them closely to avoid delays or extra costs from non-compliance.

In short, while foreign markets offer more opportunities for waste tire refining projects, they also come with risks and challenges. Success depends on thorough preparation and weighing key factors like market demand, raw material supply, and regulations to seize these opportunities. Contact us now to get more relevant information!