A tightening of European landfill legislation should help boost the sale of Wellington Holdings’ tyre re-tread compounds, the company said this week.
Announcing 1998 pre-tax profits of £3.1m, up from £2.8m in 1997, Wellington said a ban on dumping old tyres in landfill sites should help revive the depressed tyre remoulding market.
Half Wellington’s £47.8m turnover in 1998 down from £52.4m in 1997 came from its compounding business, of which tyre re-tread polymers are a major part. The other 50% of sales came from seals.
The EU has set a 30% target for recycling or re-using worn tyres. But Germany, potentially the biggest European market for retreads, recycles only 14% of its dumped tyres.