Mathe Group Turns Truck Tyres into Gold: Clean Steel Exports to India and South Korea

From Tyre Scrap to Global Steel Market

A multi-million-rand investment by Mathe Group is transforming South Africa’s tyre recycling industry. The Hammarsdale-based company has unveiled advanced machinery capable of extracting hundreds of tons of “clean steel” from radial truck tyres, steel that was once discarded but now fetches premium prices in international markets.

“Steel makes up roughly 30% of each radial truck tyre,” explains Dr Mehran Zarrebini, CEO of Mathe Group. “Previously, much of this was a by-product, but we’ve seen the untapped potential to create a valuable second income stream.”

Advanced Machinery, Higher Yields

The company’s latest investment includes a state-of-the-art clean steel mill, an automated packaging line, and multiple de-beading machines. Unlike traditional methods that damage tyre beads, the new system removes the steel rings intact, yielding a purer product that is easier to package and sell.

“The steel from tyres is three times more valuable than standard scrap metal,” Zarrebini says. “Plus, by removing more rubber efficiently, we increase the amount of rubber crumb recovered per tyre.”

The machinery will replace older, oil-driven equipment, lowering emissions and maintenance costs while streamlining operations.

Exporting to Global Markets

Currently, the clean steel is sent to India for processing before being exported to South Korea, where it is incorporated into ships and automobiles. The in-house cleaning process at Hammarsdale will reduce rubber contamination from 10% to less than 2%, producing higher-quality steel for premium markets.

With the new system, Mathe Group anticipates weekly shipments of 108 tons, or a minimum of four containers, directly from Hammarsdale to the Durban port. Zarrebini adds, “Because the steel is clean, it commands double the price internationally.”

Boosting Efficiency and Sustainability

The investment doesn’t just enhance profitability, it also supports sustainability. The new de-beading machines recover additional rubber, boosting crumb yields by 8%, and cut operational costs significantly.

“Steel wasn’t originally our main income stream,” Zarrebini notes, “but with rising costs and the complexities of doing business, it has become a crucial part of our operation.”

Social and Industry Impact

Locally, the move demonstrates the growing potential of South African recycling industries to tap into global markets. Industry observers highlight that no steel extracted from tyres currently enters the domestic market, despite strong demand. This initiative could inspire other companies to explore similar high-value recovery processes.

On social media, South African manufacturing and environmental communities have welcomed the news. One LinkedIn user commented: “It’s amazing to see a local company innovating and taking scrap steel to global markets, proof that recycling can be both profitable and sustainable.”

The steel processing equipment is expected to be fully operational by January 2026, marking a new era for the Mathe Group. With advanced technology, higher efficiency, and access to lucrative export markets, the company is not just recycling tyres, it’s turning waste into wealth.

{Source: IOL}

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