TORONTO—A tire remanufacturer planning a $37-million plant in southwestern Ontario has signed a rubber supply deal that will see it take delivery of nearly 11,000 tonnes of feedstock annually from a local producer.
Green Arc Tire Manufacturing Inc., has signed an agreement that will see AirBoss of America Corp. produce rubber compound at its Kitchener, Ont., facility for use in Green Arc’s nearby tire remanufacturing plant.
“This partnership allows them … to create a tire that’s environmentally friendly, reusing tires and giving tires a second life, (and) because they’re regional companies it allows them to work together,” Green Arc spokesperson Danna O’Brien said in an interview.
“Both are very innovative companies, both are familiar with the tire business (and) because they’re both regional companies it allows them to partner and provide economic benefits for the whole region.”
Located in St. Marys, Ont., about an hour west of Kitchener, Green Arc’s plant will be the biggest tire remanufacturing facility in North America, producing three million winter tires for passenger vehicles each year.
Green Arc’s production process uses “significantly less” oil and energy than that of standard winter tires, according to the company, and reuses 80 per cent of original tire components to make its remanufactured product.
“They’re using 80 per cent of original tire components, so the tires have the highest post-consumer content of virtually any product (on the market),” O’Brien said.
The rubber compound supplied by AirBoss is virgin material, according to O’Brien, making up the remaining 20 per cent of Green Arc’s tires.
“It’s not recycled—it’s brand new,” she said of the raw material that will be supplied by AirBoss, but noted that the folks at Green Arc “see this rubber compounding as their secret ingredient.”
“This is going to be a big part of what makes Green Arc tires durable,” O’Brien continued.
The remoulded tires will cost 30 to 50 per cent less to make compared to standard winter tires, Green Arc said.
Green Arc plans to launch full-scale production at its St. Marys plant this spring, creating an estimated 340 jobs.
The company is still waiting on approval from Ontario’s Ministry of the Environment.