The Leading Journal for the Tyre Recycling Sector

The Leading Journal for the Tyre Recycling Sector

India’s Group CNJ Investing in Tyre Shredding in Melbourne

Group CNJ is expanding its tyre recycling operation beyond India by developing a recycling operation in Melbourne, Australia

The Ahmedabad headquartered diversified Group CNJ, with interests in varied sectors including recycling of rubber crumb and chips, carbon black, rubber flooring and tiles etc., is investing in a greenfield tyre shredding site in Australia. The move is a part of the group’s strategy of expanding its footprints in the overseas market.

“We are setting-up a tyre shredding plant in Melbourne, which will have a capacity of 10 tons per hour and an annual capacity of 55,000 tons,” informed Chetan Joshi, Chairman of Nine Corporation, a subsidiary of Group CNJ in an exclusive interaction with Tyre and Rubber Recycling in Ahmedabad.

A land parcel of 50,000 sq ft has already been acquired by the group for the proposed tyre shredding site in Melbourne. On investment in the upcoming site, Joshi confided, “We are investing $3.5 million in the Australian plant, which will produce 20-25 mm steel-free rubber chips.” The plant is expected to be operational by the end of March.

The group already has a presence in Australia and has been operating Tyre Collection Australia Pty Ltd since 2018. On the strategy of investing in a tyre shredding site, Joshi explained, “Australia’s Department of Climate Change, Energy, the Environment and Water notification of 1st December 2021, barred export of whole baled tyres, or tyres in pieces larger than 150 mm. Therefore, after the law was enforced, we decided to expand into the tyre shredding business in Australia.”

On the machinery supplier, he revealed, “We are procuring a plant which includes primary and secondary shredder from Ahmedabad-based Fornnax Technology Pvt Ltd. We are shipping the primary shredder SR 150 and secondary shredder R4000 along with steel cleaning and fibre separation units shortly. So, it will be installed to commence production by the end of March.”

Moreover, the Group CNJ believes that there is huge potential to grow in Australia as in-between 20-25 shredding companies operate in the country, with another six companies  expected to enter that market soon.

According to Tyre Stewardship Australia, the country generates, on average, around 459,000 tons of waste tyres annually to be recovered for beneficial use or disposal. 

The group subsidiary Nine Corporation is engaged in the business of tyre shredding with a capacity of 48,000 tons per month in its Gujarat based plant.