Trading tires: How the West fuels a waste crisis in Asia

. Workers operate furnaces at a tyre pyrolysis plant in Kulai, Johor, Malaysia August 7, 2019. Picture taken August 7, 2019. more and more text please (Reuters)
Updated 19 October 2019

Trading tires: How the West fuels a waste crisis in Asia

  • Burning tires without adequate emissions controls can release toxic chemicals, gases into the environment

NABIPUR: When night falls in the Indian village of Nabipur, the backyard furnaces come to life, burning waste tires from the West, making the air thick with acrid smoke and the soil black with soot.

Not long ago, Nabipur was a quiet farming village in northern India. Now the village is home to at least a dozen furnaces burning a steady stream of tires to make low-quality oil in a process known as pyrolysis.

Global trade in waste tires has almost doubled in the past five years, mainly to developing countries like India and Malaysia, according to customs data provided to the UN.

Britain is currently the largest exporter, followed by Italy and the US. India is by far the biggest buyer, accounting for 32 percent of global imports last year, up from 7 percent five years ago, the UN data shows.

Many of the tires are sent to recycling operations that comply with emissions and waste disposal regulations. But there is also a vast trade to backyard pyrolysis operations that do not, according to local authorities.

In May, Reuters revealed that a mass poisoning in southern Malaysia had links to companies engaged in pyrolysis.

Using unpublished customs data and interviews with dozens of industry sources, Reuters documented a growing international trade in waste tires that pollute the communities that host them, according to local authorities and health experts.

For many developed countries, shipping tires abroad is cheaper than recycling them domestically. That helped drive international trade in rubber waste to nearly 2 million tons in 2018, equivalent to 200 million tires, from 1.1 million tons in 2013.

The trade has also been fed by ravenous fuel demand for industrial furnaces in countries like India, the emergence of inexpensive Chinese pyrolysis equipment, and weak regulations worldwide. 

Tyres are not defined as hazardous under the Basel Convention, which governs trade in dangerous waste, meaning there are few restrictions on trading them internationally unless specified by the importing country.

In most countries, including China and the US, the majority of scrap tires are handled domestically and dumped in landfills, recycled or used as fuel in factories producing products like cement and paper.

Pyrolysis supporters say the process can be a relatively clean way of disposing of tires and turning them into useful fuel. However, controlling emissions and processing waste residue from the burning of a product that is made up a wide range of chemicals, and synthetic and natural rubber is expensive and difficult to make profitable on a mass scale.

State-of-the-art plants can cost tens of millions of dollars, whereas basic Chinese-made pyrolysis equipment is available from online retailers for as little as $30,000.

An Indian government audit found that as of July 2019 there were 637 licensed pyrolysis plants countrywide, of which 270 were not complying with environmental standards and 116 had been shut down.

The audit said most operators used rudimentary equipment that exposed workers to fine carbon particles and led to dust, oil and air pollution leaking into the plant and surroundings. Industry sources say several hundred more unlicensed pyrolysis businesses are operating across India.

Pyrolysis plants have mushroomed in the southern Malaysian state of Johor over the last decade, industry sources said, where they supply fuel for ships.

At one plant visited by Reuters near the Johor town of Kulai, Bangladeshi immigrants covered in carbon dust shovelled tires imported from Australia and Singapore into a Chinese-made furnace. They lived onsite in a hut next to the kilns.

“People don’t know where old tires go,” said the owner, who gave his name only as Sam. “But if my factory doesn’t exist, where will the tires go?” He said he had a license to operate. Reuters could not verify this.

The environmental impact of pyrolysis in places like India and Malaysia is making some exporting countries take notice.

Australia, a major exporter of tires to Southeast Asia and India, said in August it would ban waste exports, including tires, although it did not give a timeline.

Australia was “aware of allegations of unsustainable processing of waste tires in some importing countries” and did not want “to be part of such practices,” said a spokesman for Trevor Evans, the official who oversees waste reduction.

Burning tires without adequate emissions controls can release numerous toxic chemicals and gases into the environment, as well as particulates, said Lalit Dandona, head of the India State-Level Disease Burden Initiative, a group of research bodies mapping health issues across India.

He said the short-term effects for those exposed to smoke from burning tires included skin irritation and lung infections and that prolonged exposure could result in heart attacks and lung cancer. Other government bodies worldwide, including the US Environmental Protection Agency, have made similar conclusions. In a 1997 report, the EPA said emissions from burning tires included dioxins, sulfur oxides and a range of metals including mercury and arsenic.

Many of the tires that end up in Indian villages like Nabipur start their lives in Britain. Indian waste tire imports from Britain alone in 2018 amounted to 263,000 tons — 13 percent of the total volume of tires traded worldwide — compared with 48,000 tons in 2013.

Most European countries require tire manufacturers and suppliers to organize tire collection and treatment, meaning there are more home-grown recycling operations. There are no such requirements in Britain, however, which means that small firms can easily obtain licenses to collect waste tires and sell them abroad.

Britain’s Department for Environment, Food and Rural Affairs (DEFRA) said it fully implements the rules of the Basel Convention but needs to do more about waste tires. DEFRA said it planned to make producers more responsible for old tires, as well as increase monitoring of shipments.

Once in India, the tires are dispersed between recyclers who shred them for use in road-building or sports fields, firms that burn them as cheap fuel to make cement or bricks, and legal and illegal pyrolysis plants, importers and exporters said.

India’s Automotive Tyre Manufacturers’ Association estimates that most imported waste tires end up in pyrolysis plants, according to the group’s deputy director, Vinay Vijayvargia.

Faced with a growing backlash from environmental groups and residents living near pyrolysis plants, India is considering banning all but the most sophisticated operations. The country’s environmental court is expected to rule on the proposed ban in January.

Six years ago, there were no pyrolysis plants in Nabipur, 70 miles south of New Delhi. Now there are 10, with most operating at night to avoid scrutiny, residents said. Reuters visited three small plants in the village.

At one, tires embossed with ‘Made in Germany’ and ‘Made in USA.’ lay strewn on the floor and thick sludge seeped from pipes protruding from incineration drums. Most tires used for vehicles in India are made domestically.

Workers wore no safety equipment, and their skin and clothes were covered in black soot. The owner, Pankaj, said a trader sells him tires imported from abroad.

Villagers said they have suffered from breathing difficulties and eye and throat infections since the plants began expanding, and farmers had found black dust in their soil.

Reuters could not independently verify the claims. It was also not possible to verify if the operations were licensed.

“Used tires are not available locally, so they import from abroad,” said Shiva Choudhary, a businessman who leases out construction equipment in Nabipur. “They clean their own country and dump their garbage on us.”


Alibaba confirms huge Hong Kong public listing worth at least $13bn

Updated 15 November 2019

Alibaba confirms huge Hong Kong public listing worth at least $13bn

  • Over-allocation options could take the total value to more than $13 billion, making it one of the biggest IPOs in Hong Kong for a decade
  • Alibaba Chief Executive Officer said the group wanted to participate in Hong Kong’s future

HONG KONG: Chinese technology giant Alibaba on Friday confirmed plans to list in Hong Kong in what it called a $13 billion vote of confidence in the turbulent city’s markets and a step forward in its plans to go global.
The enormous IPO, which Hong Kong had lobbied for, will come as a boost for authorities wrestling with pro-democracy protests that have tarnished the financial hub’s image for order and security and hammered its stock market.
Alibaba will offer 500 million shares at a maximum of HK$188 apiece to retail investors, the company said. The number eight is considered auspicious in China.
Over-allocation options could take the total value to more than $13 billion, making it one of the biggest IPOs in Hong Kong for a decade after insurance giant AIA raised $20.5 billion in 2010.
Alibaba had planned to list in the summer but called it off owing to the city’s long-running pro-democracy protests and the China-US trade war. The US and China are now working on sealing a partial trade deal.
Daniel Zhang, Alibaba Chief Executive Officer, said the group wanted to “contribute, in our small way, and participate in the future of Hong Kong.”
“During this time of ongoing change, we continue to believe that the future of Hong Kong remains bright,” he said.
The firm’s shares are already traded in New York. A second listing in Hong Kong is expected to curry favor with Beijing, which has sought to encourage its current and future big tech firms to list nearer to home after the loss of companies such as Baidu to Wall Street.
In the statement, Zhang said that when Alibaba went public in 2014 it “missed out on Hong Kong with regret.”
Mainland authorities have also stepped up moves to attract such listings, including launching a new technology board in Shanghai in July.
The listing comes after the city’s exchange tweaked the rules to allow double listings, while Chief Executive Carrie Lam had also been pushing Alibaba’s billionaire founder Jack Ma to sell shares in the city.
“The listing in Hong Kong will allow more of the company’s users and stakeholders in the Alibaba digital economy across Asia to invest and participate in Alibaba’s growth,” the company said.
It has long been expected to launch a multibillion-dollar stock listing in Hong Kong but appeared to postpone the offering because of political and economic turmoil.
Hong Kong’s key Hang Seng Index rose 0.48 percent in morning trading following the announcement
Chinese shoppers set new records for spending on Monday’s annual 24-hour “Singles’ Day” buying spree, despite an economic slowdown in the country and the worries over the US trade war.
It said consumers spent $38.3 billion on its platforms over that stretch, up 26 percent from the previous all-time high mark set last year.
Alibaba also said it saw record amounts of cross-border sales, underlining its plans to expand globally.
“Globalization is the future of Alibaba Group. We firmly believe the marriage of digital technology and commerce will bring about unprecedented change that will not be limited by borders,” Zhang said.