Market Summary
Rubber Market
Magnum will be involved in the rubber market as a whole. This market includes many types of products. Natural and synthetic rubbers are used in a multitude of applications, some are:
- Rubber gaskets, seals and spacers
- Rubber footwear and clothing
- Moulded, extruded and fabricated rubber products
- Rubber mats
- Rubber sporting goods
- Rubber bands
- Hose and belting
- Rubber stamp
- Treader rubber compounds
- Dingies and rubber rafts
Others are:
- Household to industrial products
- Tires and tubes (the largest consumers of rubber, accounting for around 56% total consumption in 2005)
- Door and window profiles, hoses, belts, matting, flooring and dampeners (anti-vibration mounts) for the automotive
- Gloves (medical, household and industrial)
- Rubber balloons
- Adhesives in many manufacturing industries and products
- Rubber bands and pencil erasers
- Numerous other products
To switch from global to specific, Magnum is involved is more specifically involved in recycling scrap tire to give a new life to the recovered rubber. If we target specifically the tire recycling market and its life cycle we get the following:
Magnum’s global market = home and garden & playgrounds
This market is a multi-billion dollar industry. According to a recent Freedonia market study (appendix #4), rubber mulch (which includes buffings and nuggets) is among a good growing market. The baby boom generation, which is primed for the peak gardening years and residence in more affluent areas with larger yards, will hike demand going forward, especially for products used in landscaping and gardening applications. At the same time, because of a renewed emphasis on family, the population is electing to spend more time and energy in and around their homes, as well as the homes of family members and friends. So they buy more and more garden products.
Playgrounds
Ground rubber is recognized as the safest play surface on the market. At a depth of 6 inches ground rubber provides the most shock absorption in playgrounds available on the market today – twice as safe as those with tan-bark, sand, pebbles and most other surfaces. Rubber has the unique ability to reduce injuries due to falls from a critical height of over 12 feet! You can actually take an egg and drop it from a height of 12 feet and watch it bounce. While the upfront cost may be a little more than other surfaces, ground rubber only needs to be installed once. No annual upgrading or replacement is required so the cost over time is much less than the alternatives. Also, ground rubber only requires a maximum of 6 inches in depth, versus 12 inches for the wood mulch – so less material and preparation is required.
The target market Magnum targets the consumer products market especially the exterior landscaping market which includes homes, schools, daycare centres, townships, etc. The home and garden market is in expansion in North America Rubber mulch is a strong market and putting major competitive pressure on TDF (Tire Derived Fuel) because mulch has more than twice the market value of TDF. TDF are mostly used in cement kilns as an alternative source of energy. Five years ago, people said wouldn’t pay 15 times more for rubber mulch than for bark. Well, they are, and it’s still selling. Rubber mulch is now being sold at Wal-Mart and other worldwide chains, Lowe’s, etc. Note that garden rubber mulch isn’t suitable for playgrounds: It may contain small pieces of steel or nylon Playgrounds are 98-99 % free of metal and textile.
Market News
Magnum has formed a close relationship over the past few months with Import/Export Agent “DANIEL BOLDUC CONSULTANT EN DOUANES INC.”, of Sherbrooke (Quebec). Click here to view Magnum’s Licensed Custom Broker on the Canada Border Services Agency.
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Production of rubber nuggets
Download the powerpoint presentation. (PPT, 2.12 MB)
Production of rubber buffings
Download the powerpoint presentation. (PPT, 1.76 MB)