A long\u002Dtime consultant in the North American scrap tire business is applauding a review recently announced by the province.
The province this week announced a Ministry of Environment review of TSS procurement practices, along with an assessment of the future needs of the tire recycling industry, placing the request for proposals for a northern processor on hold, for now.
“I think it was foolhardy to bring in a second processor,” he said, adding that Shercom has been one of just a handful of North American companies handling the entire chain of processing tires and manufacturing finished products from the rubber.Article content “I can’t tell you how many companies have failed because all they saw were the dollar signs of people paying them to pick up tires. That was a one-way street to going out of business very quickly. If you’re going to be successful in this business, you need to make your profit at the back end, and that is what Shercom is doing.”Article content
While CRM is a well-established firm with operations across several U.S. states and Canada, he believes having two companies split the limited pool of scrap tires means at least one, if not both, would be doomed to fail, he said.
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