Value chain analysis applied to the scrap tire reverse logistics chain: An applied study of co-processing in the cement industry

Abstract

The tire has become a key element in the development of modern society. However, improperly discarded tires can cause harm to public health and the environment and should be promptly recycled and reused in other production cycles to minimize the consumption of non-renewable raw materials and to extend the life of landfills. However, in many parts of the world, the tires are considered negative value goods for the market, and their collection, processing, and disposal costs are subsidized. To verify whether the scrap tire reverse logistics chain can become sustainable not only from an environmental perspective but also socially and financially, the present study aimed to provide an analysis of the value chain. This study sought to verify the possibility of distributing financial benefits along the scrap tire reverse logistics chain, considering co-processing in the cement industries to be one possible destination. Additionally, a conceptual model for the scrap tire reverse logistics chain is proposed, a value chain analysis method that is applied to the scrap tire reverse logistics chain is shown, and an analysis of the sensitivity of replacing petroleum coke for scrap tires according to the variation of the value of the scrap tires and petroleum coke is done. The results presented here showed that it is possible for the chain elements to cover their costs and still obtain a profit margin of 1.71% on the costs for the generator and the processor while maintaining a cost reduction of 1.21% for the residue user in relation to the average price of petroleum coke.