Commercial fleet operators (logistics companies, bus operators, delivery services, vehicle rental firms) generate substantial end-of-life tyre volumes. A 50-vehicle logistics fleet replacing tyres every 50,000-70,000 miles produces 400-600 tyres annually. Larger fleets (200-500 vehicles) generate 1,500-6,000 tyres yearly.
Current disposal methods typically involve paying tyre suppliers or waste contractors £2 to £5 per tyre for collection and disposal. At 2,000 tyres annually, that’s £4,000 to £10,000 in disposal costs. These costs are pure expense with no offsetting value.
On-site tyre baling transforms disposal expense into potential revenue. Compressed bales sell to recycling processors, construction companies, or energy recovery facilities for £80 to £150 per tonne. A 2,000-tyre fleet produces approximately 20 tonnes of baled material annually, generating £1,600 to £3,000 in revenue instead of £4,000 to £10,000 in disposal costs.
Net improvement: £5,600 to £13,000 annually. For equipment costing £50,000 to £65,000, payback ranges from 4 to 12 years depending on fleet size and current disposal costs. Larger fleets (5,000+ tyres annually) achieve payback within 2 to 3 years.
Beyond direct cost savings, on-site processing eliminates dependency on contractors (no collection delays), improves site housekeeping (baled tyres occupy 85% less space than loose stockpiles), and provides sustainability credentials for corporate reporting.
Gradeall International manufactures tyre baling equipment at our facility in Dungannon, Northern Ireland. We’ve supplied fleet operators, logistics companies, and vehicle maintenance facilities across 100+ countries over nearly 40 years.
Understanding your tyre generation rate determines equipment requirements and ROI projections.
Typical replacement cycles by vehicle type:
Light commercial vans (Transit, Sprinter, Vivaro):
Rigid trucks and box vans (7.5-18 tonne):
Articulated lorries (HGVs, 44 tonne):
Buses and coaches:
Fleet size calculations:
Small fleet (50 vehicles, mixed vans and trucks):
Medium fleet (200 vehicles, logistics operation):
Large fleet (500 vehicles, national operator):
These figures represent operational replacements. Add 10-15% for accident damage, premature wear, and seasonal tyre changes (winter tyres in some fleets).
Match baler capacity to annual volumes and available processing time.
Small fleets (150-500 tyres annually):
Annual volume this low rarely justifies dedicated baling equipment. Disposal through tyre supplier or waste contractor remains most cost-effective. Equipment payback exceeds 15-20 years at these volumes.
Exception: If fleet shares facilities with other tyre generators (adjacent businesses, industrial estate tenants), joint equipment purchase or service arrangement makes baling viable.
Medium fleets (500-2,000 tyres annually):
Recommended: MK3 tyre baler
The MK3’s single-phase power (4kW, 240V) works at most depot facilities without electrical upgrades. Lower equipment cost improves payback (6-10 years typical at 1,000 tyres annually).
Large fleets (2,000-10,000 tyres annually):
Recommended: MKII tyre baler
The MKII’s higher capacity and PAS 108-compliant bales (900kg) justify the additional cost. Three-phase power (7.5kW, 415V) required; most fleet depot sites already have this for workshop equipment.
Very large fleets (10,000+ tyres annually):
Recommended: MKII with automation or integrated processing line
At these volumes, labour efficiency matters. Automatic wire systems and conveyors reduce hands-on time by 40-50%, allowing workshop staff to process tyres alongside other duties rather than dedicating full shifts to baling.
Tyre baling should complement existing fleet maintenance workflows, not disrupt them.
Workshop layout considerations:
Position baler near tyre changing area but not in active workspace. Tyres removed from vehicles accumulate in a staging area (allocated 10-15m² floor space), then batch-process during quieter periods (early morning, late afternoon, between service appointments).
Avoid positioning baler in high-traffic areas where forklifts, vehicles, and staff movement create congestion. Baling generates noise (60-65dB) and requires clear access for operator safety.
Processing schedule options:
Option A: Daily batch processing (high-volume fleets)
Option B: Weekly batch processing (medium fleets)
Option C: Monthly batch processing (smaller fleets)
Daily processing minimizes storage space requirements. Monthly processing requires larger staging areas but reduces staff time commitment to once monthly.
Staff allocation:
Baling doesn’t require dedicated operators. Workshop staff, facilities personnel, or yard operatives can be trained (4 hours initial training) and operate equipment as needed.
Typical staffing: 2-3 trained operators working in rotation ensures coverage during holidays, sickness, or peak workshop periods.
Quantify savings in direct disposal costs and indirect operational benefits.
Scenario: 200-vehicle logistics fleet, 1,000 tyres annually
Current disposal costs:
Baling costs:
Annual saving: £6,500 – £561 = £5,939
Payback period: £40,000 ÷ £5,939 = 6.7 years
At 2,000 tyres annually (larger fleet), savings double (£11,878), cutting payback to 3.4 years. At 5,000 tyres annually (major operator), payback drops to 18-24 months.
Scenario: 500-vehicle national fleet, 5,000 tyres annually
Current disposal:
Baling:
Annual benefit: £31,000 – (-£1,325) = £32,325
Payback: £55,000 ÷ £32,325 = 1.7 years
Large fleets achieve rapid payback and significant ongoing savings. The MKII’s PAS 108-compliant bales command higher prices (£120-£150/tonne vs £80-£100 for lower-density bales), improving revenue.
Once tyres are baled, where do they go?
Construction and civil engineering (PAS 108 market):
900kg+ bales meeting PAS 108 British Standard are used in:
Price: £120-£200 per tonne depending on location and specifications.
This is the premium market, but it requires:
Only the MKII baler with 7.5kW motor consistently produces PAS 108-compliant bales. The MK3 (4kW motor) produces 400-500kg bales unsuitable for construction applications.
Shredding and processing facilities:
Recycling companies accept baled tyres for shredding into rubber crumb, used in:
Price: £80-£120 per tonne depending on quality and transport distance.
Less demanding than PAS 108 market. Any compressed bale (including MK3 output) is acceptable. Processors prefer baled over loose tyres because bales are easier to handle and occupy less yard space.
Energy recovery and pyrolysis:
Cement kilns and specialized energy recovery facilities use tyres as alternative fuel. Pyrolysis plants convert tyres to oil, gas, and carbon black.
Price: £60-£100 per tonne, or free collection for large volumes.
Least demanding market. Even lower-quality bales are acceptable. This is fallback option if construction or shredding markets aren’t accessible.
Logistics:
Bale buyers typically collect from your site. They provide lorries, loading equipment, and documentation. Collection frequency depends on volumes:
Don’t let bales accumulate excessively (causes fire risk and storage issues). Aim for collection every 2-3 months maximum.
Fleet operators storing and processing tyres must comply with environmental regulations.
Waste classification:
End-of-life tyres are classified as waste under Environmental Protection Act 1990. This creates obligations:
Duty of care: Ensure tyres are transferred only to authorized waste processors. Obtain waste transfer notes for every collection. Retain records for 2 years minimum.
Registration: Operations storing over 2,000 tyres (loose or baled) may require waste storage registration or environmental permit. Check with Environment Agency (England/Wales), SEPA (Scotland), or NIEA (Northern Ireland).
Fire safety:
Fire prevention plan required if storing significant tyre quantities. Measures include:
Baled tyres present lower fire risk than loose stockpiles (85% less exposed surface area, reduced oxygen availability within compressed bales). However, fire prevention measures still apply.
Health and safety:
Risk assessment required under PUWER and Health and Safety at Work Act 1974. Cover:
Training required for equipment operators (4 hours initial, annual refresher recommended).
Small fleets (under 1,000 tyres annually) can benefit from baling through collaborative arrangements.
Multi-fleet joint ownership:
Three small fleets (300 tyres each, 900 total) jointly purchase MK3 baler (£38,000 ÷ 3 = £12,667 per fleet). Equipment rotates between sites quarterly, or installs at central location accessible to all.
Requires: Usage agreement, maintenance cost sharing protocol, insurance coverage.
Industrial estate shared equipment:
Industrial estates or business parks install baler accessible to all tenants. Each business pays usage fee (£1-£2 per tyre processed) covering equipment costs, maintenance, and operation.
Operator: Estate management or contracted service provider.
Suitable for: Estates with multiple small vehicle fleets, garage clusters, commercial vehicle services.
Contract processing service:
Third-party provides mobile or fixed baling services. You deliver loose tyres to their facility, or they collect and process on-site, returning bales.
Cost: £2-£4 per tyre (lower than disposal but higher than owning equipment).
Payback comparison: Contract processing at £3/tyre costs the same as disposal but yields bales you can sell, making it break-even or slightly positive. Owning equipment costs less long-term but requires capital investment.
Fleet profile:
Previous disposal:
Solution implemented:
Results (year one):
Saving vs previous: £20,200 – (-£635) = £20,835
Payback: £58,000 ÷ £20,835 = 2.8 years
Additional benefits:
This reflects typical large fleet outcomes. Medium fleets (1,000-2,000 tyres) see 5-8 year payback. Small fleets (under 1,000) require shared service models or extended payback periods (10-15 years).
Depends on fleet size and vehicle types. Small fleets (50 vehicles, mostly vans): 150-200 tyres annually. Medium fleets (200 vehicles, mixed): 800-1,200 tyres. Large fleets (500+ vehicles, national operators): 2,500-6,000 tyres. HGV fleets generate more tyres per vehicle (12-18 annually) due to higher mileage and more tyres per unit (22 tyres per articulated lorry).
Small-medium fleets (500-2,000 tyres annually): MK3 baler adequate (£35,000-£45,000, 40-50 tyres/hour, single-phase power). Large fleets (2,000-10,000 tyres): MKII required (£50,000-£65,000, 80 tyres/hour, three-phase power, produces PAS 108-compliant 900kg bales). Very large fleets (10,000+): MKII with automation or integrated processing line.
40-70% cost reduction typical. Example: 1,000 tyre fleet currently pays £3,500 disposal (£3.50/tyre). Baling costs £1,200 annually (equipment operating costs) but generates £1,000 bale revenue. Net cost: £200 vs £3,500 (94% saving). At 5,000 tyres: £17,500 disposal becomes net revenue of £1,325 (saving £18,825 annually). Equipment payback: 2-7 years depending on fleet size.
Construction market (PAS 108-compliant bales): £120-£200/tonne for road embankments, civil engineering. Shredding facilities: £80-£120/tonne for rubber crumb production. Energy recovery/pyrolysis: £60-£100/tonne or free collection. Buyers typically collect from your site. Construction market requires MKII baler (produces 900kg bales); shredding accepts any compressed bales (including MK3 output).
Rarely if operating alone. Under 500 tyres annually, equipment payback exceeds 15 years. Options for small fleets: (1) Shared service with neighboring businesses (joint equipment ownership), (2) Industrial estate communal baler, (3) Contract processing services (deliver loose tyres to third-party baler, £2-£4/tyre). Above 1,000 tyres annually, dedicated equipment becomes viable (6-10 year payback).
Equipment footprint: 20-30m² (MK3 requires 5m × 4m, MKII requires 6m × 5m). Plus staging area for incoming tyres: 10-20m² depending on processing frequency. Plus bale storage: 10-15m² (bales stack 3-high, each occupies 1.2m² floor space). Total: 40-65m² for complete operation. Compare to 100-200m² for equivalent loose tyre storage.
No special license for baling itself, but waste regulations apply. Duty of care: Transfer tyres only to authorized waste processors, obtain waste transfer notes. Environmental permit may be required if storing 2,000+ tyres on site (check with Environment Agency). Fire prevention plan needed for significant tyre storage. Risk assessment required under PUWER. No specialized qualifications needed; 4-hour operator training sufficient.
Process tyres in batches during quiet periods rather than continuously. Daily processing (large fleets): 1-2 hours end-of-day session. Weekly processing (medium fleets): 2-4 hours Friday afternoon or Monday morning. Monthly processing (small fleets): 4-6 hours scheduled session. Workshop staff operate baler alongside other duties; no dedicated operator needed. Position baler near tyre changing area but outside high-traffic workspace.
Fleet operators processing 1,000+ tyres annually reduce disposal costs by 40% to 70% through on-site baling. The MKII tyre baler transforms £10,000-£20,000 annual disposal expense into net revenue or minimal cost through bale sales (£100-£150 per tonne to construction market).
Medium fleets (1,000-2,000 tyres) achieve 6-10 year payback with MK3 equipment (£35,000-£45,000). Large fleets (5,000+ tyres) achieve 2-3 year payback with MKII equipment (£50,000-£65,000).
Processing integrates with existing fleet maintenance operations through batch processing (weekly or monthly sessions, 2-6 hours depending on volumes). Workshop staff operate equipment alongside other duties after 4-hour training.
Small fleets (under 1,000 tyres) benefit from shared service models (joint equipment ownership, industrial estate communal baling, or contract processing services) rather than dedicated equipment ownership.
Contact Gradeall to discuss fleet tyre baling requirements. We’ll calculate disposal savings and equipment payback based on your specific fleet size, tyre volumes, and site conditions.
* The prices and running-cost figures below are based on real UK customer examples and are correct at the time of writing, but should be treated as indicative only.
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