chapter  7
17 Pages

Circular Business Model

The case of a tire recycling plant in the Bío-Bío Chilean region
WithCamilo Angel Peña Ramírez, Mario Vidal Sanhueza, Gonzalo Garcés Rodríguez, Sheila Serafim da Silva

In this chapter, the problems of waste management generated in the tire recycling process are investigated and analyzed, taking as a case study a recycling plant business model, whose main product is rubber granules of different sizes, and that, in turn, produces steel residues and synthetic fiber wires. The model taken as reference considers that the waste steel wires are sold as scrap and the synthetic fiber residues are discarded to landfills. The value proposition contemplates modifying the current plant business model, incorporating the principles of the Circular Economy, which proposes that raw materials maintain their value and utility at all times. In this case, synthetic fibers and steel wires will be reused and will generate an income after being sold. The Canvas tool is applied to capture the company business model under study, taking advantage of the quality of this tool to generate a canvas with the links of the main areas of the business. Once the business model is obtained on the canvas, the Circular Economy is used to analyze in what stages of the process it is feasible to modify the model, so as to allow a reuse of the initially considered waste. The new business model, called Modified Canvas with Circular Economy, incorporates a value proposition which avoids the synthetic fiber landfill by transforming it into raw material for insulation system production; as well as increasing the wire steel valorization when such material is processed and incorporated again into a productive process. The incorporation of these two residues, now products, generates a positive net profitability, to the fifth operational year of 6.77%, with respect to the reference model utility. For future work, it is proposed that sensitivity analyses should be conducted on the variables modified in the business model.