TIRE RECYCLING BUSINESS PLAN

I. Executive Summary

Company Description

Houston Tire Materials, LLC is a premier tire recycling and material science company based in Houston, Texas, launching in 2026. We operate in the waste-to-materials and advanced recycling sector, mechanically transforming end-of-life tires into industrial-grade crumb rubber, recovered steel, and fiber for the construction and manufacturing industries. We emphasize purity, consistency, and environmental stewardship, using advanced sorting and granulation technology to deliver predictable, spec-driven raw materials that replace virgin inputs. One-line: We turn scrap tires into spec-grade feedstock for U.S. builders and manufacturers.

Our core activities are inbound logistics, mechanical sorting, granulation, quality testing, and bulk supply chain fulfillment to domestic commercial buyers. We target construction product manufacturers, asphalt modifiers, molded-rubber parts makers, and industrial compounders seeking sustainable, reliable material alternatives. Short-term goals: commission the Houston facility in Q2 2026, achieve 80% nameplate throughput within 12 months, and secure five anchor commercial contracts. Long-term goals: scale to three regional plants by 2030 and capture 10% of the domestic crumb-rubber market. One-line: We scale fast to meet growing demand for circular, high-spec tire-derived materials.

Problem

The U.S. generates over 250 million scrap tires annually, a non-biodegradable waste stream that fills landfills, creates fire hazards, and raises public health risks while consuming valuable land.

Current disposal and recycling methods fail to recover sufficient volumes of high-purity recycled rubber required by premium construction and manufacturing applications, forcing continued reliance on carbon-intensive virgin materials, raising material costs, and leaving municipalities with landfill and remediation liabilities. This gap in supply of consistent, industrial-grade recycled inputs is materially underserved.

Solution

The United States discards over 250 million tires each year, creating landfill volume, fire risk, and lost material value; construction and athletic-surfacing buyers need reliable, high‑purity recycled rubber to meet sustainability mandates.

We recover and return the full material value of end‑of‑life tires by separating them into four material streams and five product lines, delivering 100 percent of a tire’s material value to manufacturers via a Houston mechanical processing facility that uses an advanced technology platform and proprietary sorting and purification. Products: Fine Crumb Rubber, Coarse Crumb Rubber, Recycled Steel, Processed Fiber, and Rubber Mulch, all produced to industrial specifications for traceable, spec‑grade supply.

Mission Statement

Our mission is to lead the transition to a circular economy by transforming the nation’s tire waste into high-performance materials that power durable, sustainable infrastructure. We commit to operational excellence, environmental integrity, and delivering sustainable solutions that never compromise quality. Through continuous innovation in recycling technology, we aim to eliminate tire waste and create long-term value for employees, stakeholders, and the communities we serve.

Key Success Factors

Proprietary processing, Houston location, diversified revenue, lean team, and supplier relationships drive our success.

• Proprietary processing technology: delivers superior purity in crumb rubber products.
• Houston location: provides ready access to scrap tire supply and industrial customers.
• Diversified revenue streams: five product lines reduce exposure to single-market swings.
• Lean, experienced management: capable of scaling to reach $6.685M EBITDA by Year 5.
• Established supplier relationships: tire retailers and municipal authorities ensure steady, low-cost feedstock.

Financial Summary

Concise financial snapshot for the Executive Summary with conservative sales-based projections and investor returns.

Financial need: Total capital investment $3,450,000; payback 31 months; breakeven Jan-2026; investor returns: ROE 18.68% and IRR 5.00%.

Financial outlook: profitable from month one with growing EBITDA and a clear capital payback path.

Funding Requirements

We require capital to fund the facility build-out, specialized machinery, office setup, initial supplies, and a maximum working capital deficit to start operations in January 2026.