Mathe Group invests in clean steel extraction from tyres for export markets

SOUTH AFRICA – Leading radial truck tyre recycler Mathe Group has unveiled a multi-million-rand investment in advanced equipment designed to extract high-quality “clean steel” from end-of-life tyres.

The move positions the KwaZulu-Natal–based company to boost exports to India and South Korea, while adding a valuable new revenue stream to its operations.

The investment includes the installation of a steel cleaning mill with an automated packaging line and multiple state-of-the-art de-beading machines.

Together, these upgrades are expected to enhance Mathe Group’s efficiency and earnings significantly.

According to CEO Dr Mehran Zarrebini, steel accounts for nearly 30% of each radial truck tyre, yet has historically been treated as a low-value by-product. The new technology transforms it into a premium commodity.

“Previously, the geometry of steel beads was damaged during extraction, making them difficult to sell. Our new machinery preserves bead integrity and removes rubber contamination, allowing us to supply a cleaner, higher-value product,” Zarrebini explained.

Unlike traditional scrap metal, this clean steel commands twice the international market price and can be used directly in industrial applications, such as blasting, or as feedstock in shipbuilding and automobile manufacturing.

Weekly exports of at least 108 tonnes, or four shipping containers, are expected once the process is fully operational by January 2026.

The initiative also supports South Africa’s circular economy goals by reducing waste, cutting emissions, and unlocking greater value from tyre recycling.

In addition to steel recovery, the process yields an extra 8% of rubber crumb, used in products such as playground surfaces, sports fields, and paving.

Currently, steel extracted from tyres in South Africa is exported raw to India for cleaning before reaching manufacturing hubs in Asia.

By introducing an in-house cleaning process that reduces rubber contamination from 10% to under 2%, Mathe Group will eliminate this costly middle step and strengthen its position in global supply chains.

Zarrebini emphasized the potential local benefits as well, “We are also exploring opportunities to introduce clean tyre-derived steel into South Africa’s struggling steel market. Right now, no locally recycled steel from tyres is sold domestically. This technology could change that.”

The investment marks a major step forward for South Africa’s recycling sector, highlighting how innovation in waste-to-value solutions can open new markets and improve profitability. For Mathe Group, what was once considered waste is rapidly becoming a strategic growth driver.

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