If We had to do it all over Again, I would… Lessons Learned in the USA Michael Blumenthal Marshay, Inc. New Zealand Scrap Tyre Summit June 3, 2015 Marsha, Inc. New Zealand Scrap Tyre Summit, June 3, 2015

In an ideal world… Everybody who touches the tire has some level of responsibility (manufacturer, wholesaler, retailer, consumer, hauler, processor, end users and government agencies) All tyres should be regulated Regulations make the scrap tyre industry possible Scrap tyres are unlike any other secondary material: what works for paper/plastic/cardboard, etc. does not work for scrap tires There is no one solution to the scrap tire problem Marsha, Inc. New Zealand Scrap Tyre Summit, June 3, 2015

From my perspective… The five essential components of any successful scrap tyre management plan are: a comprehensive market development program; stockpile abatement; real-world regulations; enforcement of those regulation and a dedicated scrap tire fund Use funds to develop the demand or remove barriers for scrap tyre- derived products Mandates do not achieve the long-term objectives they are created for Subsidies are not an effective market development tool: when the subsidy ends that market goes away Marsha, Inc. New Zealand Scrap Tyre Summit, June 3, 2015

The reality is… Paying processors to process tires is not market development Landfilling tires is not an end use You cannot have too many markets for scrap tyres Tyres were not made to be processed Markets come and markets go If it sounds too good to be true it probably is Marsha, Inc. New Zealand Scrap Tyre Summit, June 3, 2015

Observations and Conclusions Free market systems tend to be more competitive, which keeps costs down EPR/managed programs tend to be more costly than free market systems and tend to lose innovation and competitiveness Relying on government to be the end user is not consistent with long- term stability to the marketplace In the end, any management scheme will be successful if there are sufficient, viable end use markets for the tyres generated Any management scheme will fail if there are not sufficient markets Marsha, Inc. New Zealand Scrap Tyre Summit, June 3, 2015

And One More Thing Market development strategy should be a function of the potential end use markets available TDF potential; Competing materials (TDA); Will the asphalt industry be an ally or obstacle? Dictating where tyre-derived material has to go only works if there is sufficient capacity Dis-allowing certain end use markets limits adds costs to the process The government program should encourage/support all markets but let the marketplace select winners & loser Marsha, Inc. New Zealand Scrap Tyre Summit, June 3, 2015

Contact Information Michael Blumenthal Marshay, Inc. ◦A Scrap Tire Consulting Company MARSHA, INC. NEW ZEALAND SCRAP TYRE SUMMIT, JUNE 3, 2015