MONTREAL—Tirex Corp., a scrap tire cryogenic system manufacturer, has expanded into making mats from recycled rubber. Until recently, Tirex stayed strictly on the technology side and mainly helped other companies set up the patented TCS-1 plant, a cryogenic scrap tire disintegration system which breaks down used tires into cleanly separated, salable rubber crumb, steel wire and fiber.
But Tirex began producing and shipping rubber floor mats as part of a contract with IM2 Merchandising and Manufacturing Corp., a spokesman said.
The IM2 contract has opened a lot of doors for Tirex, said Terence C. Byrne, company chairman and CEO.
``From a business point of view, it was very interesting for us to go into the product side and that's why we went through with the contract with IM2,'' Mr. Byrne said.
Under the minimum sales goals set by the contract, Tirex officials expect to generate at least $19.8 million in revenues during the next five years. The company plans to see at least $1.1 million of that in its first year of producing and shipping floor mats, which will be sold through national retailers including Wal-Mart and Home Depot.
The company could sell an estimated 1 million mats in the next 12 months at a cost of $3.15 per mat, Mr. Byrne said. That would bring total revenues for the year to more than $3.1 million. Earnings from the first year of floor mat production could total about $1.4 million, he said.
The company has added a 400-ton press, a 350-ton press and an automated flocking line to handle the production of floor mats. Another press is on the way and should round off the 100,000-sq.-ft. facility, Mr. Byrne said.
About 45 jobs soon will be added to the Tirex payroll, he said. Three shifts will keep the equipment running around the clock, Mr. Byrne said.