Managing Director of FREEE Recycle Limited, Ifedolapo Runsewe, tells TEMITOPE ADETUNJI how she is creating environmental solutions by recycling used tyres
What inspired your interest in the conversion of old car tyres into recycled products?
My name is Ifedolapo Runsewe. I am an indigene of Ekiti State. I have over a decade of experience in sectors spanning banking and telecommunications in Nigeria and abroad. I am the Managing Director of FREEE Recycle Limited.
Waste tyres have emerged as a significant environmental challenge in Nigeria, posing a range of environmental, health, and economic problems. It is estimated that Nigeria generates over three million waste tyres annually. As an environmentally conscious Nigerian, I decided to create an environmental solution by recycling these waste tyres to decrease the environmental impact caused by such improper disposal. That was how the journey of FREEE Recycle began.
What were you doing before you started recycling old car tyres?
I was fortunate to have enjoyed a successful career in banking and telecommunications for over a decade where I honed my skills in sales, customer service, and operations management. Throughout my banking career, I was intentional about improving my business acumen which I knew would prepare me for the next stage of my career. I have always wanted to be an active partaker in the Go-Green revolution happening around the world in the face of global warming. This was also a major motivation for me to pursue a career in recycling and creating an impact in the Go-Green revolution globally.
How connected is your educational background to the business?
I graduated with a bachelor’s degree in Economics from Madonna University and, thereafter, proceeded to obtain a master’s degree in Public and International Affairs from the University of Lagos.
How long have you been in the business?
FREEE Recycle Limited was incorporated in January 2018. However, we commenced operations in 2020. Our vision is to be the leading recycled rubber manufacturing company in Nigeria, hence, reducing the issue of tire waste management in the country.
What were the reactions of your family and friends when you informed them about your plan to start the business?
They showed remarkable support for my aspirations and goals. Additionally, they actively participated in the initial research phase, grasping the potential positive impact that environmental waste solutions in Nigeria and beyond could bring about.
How much did it cost you to start the business?
We initiated our operations with a capital investment exceeding N5bn.
What was the hardest decision you had to make for your business to succeed?
Last year, we found it necessary to temporarily reduce our operations to facilitate the smooth installation of our additional plant. As a result, we had to decrease our workforce during that period.
Did you take a loan from a bank and were banks willing to invest in your business idea?
Securing bank support in Nigeria can be quite a challenging endeavour. Fortunately, our journey was marked by the presence of supportive investors and advisors, such as Sage Grey Finance Limited which allowed us to record significant progress in our business at the initial stage. Furthermore, we were fortunate to collaborate with Providus Bank, a forward-thinking institution that accommodated our funding needs. As a female-owned business, the Bank of Industry’s support enabled the development of our facility and procurement of our equipment. We also have access to mentoring and business advisory services.
What were some of the major obstacles you faced in the early stage of the business?
FREEE Recycle suffered a major setback due to the COVID-19 pandemic which affected our operations, especially with delays in clearing equipment from the Nigerian port. This caused a delay in the commencement of our production and operations. After the lockdown, operations commenced and there have been some very positive proceeds ever since.
FREEE Recycle manufactures a diverse range of products, including rubber tiles, rubber mats, flip-flops, and mouse pads, among others. Our product lines can be produced in thicknesses of 15 millimetres, 20mm, and 30mm. The interlocking or paving stones come only in one particular thickness of 40mm. Our products provide many solutions particularly due to their durable, anti-slippery, and sustainable qualities. In addition, we also intend to commence steel recycling which is a component of waste tyres.
How do you source old car tyres for your projects, and do you face any challenges in acquiring them?
We have a solid network of over 200 direct and indirect agents who are paid to collect the waste tyres from different locations and transport them down to our facility daily. All our agents are known and registered with us. Notably, we also pioneered the Extended Consumer Responsibility Programme by encouraging commercial and corporate consumers to be more proactive in managing the lifecycle and end-of-life plan upon disposal of tyres. A certificate of recycling is issued, detailing the volume of waste tyres recycled and the corresponding volume of recycled rubber produced.
What do you think is the environmental impact of recycling car tyres and how does it contribute to sustainability?
Our company upholds a vision of a holistic adoption of sustainability practices. As of today, FREEE Recycle is currently aligned with 12 Sustainable Development Goals out of the 17 Sustainable Development Goals with SDG 12 itself being identified as central to our operations as recyclers. We intend to leverage our value chain and in-country experience for the establishment of multiple waste recycling facilities and expand its recycling and manufacturing operations into every state in Nigeria and into six in Africa thereby, growing profitability through our FREEE Franchise Program. We have also identified and engaged Pan-African Strategic Partners such as BASF, Michelin Africa, PriceWaterhouseCoopers, banking partners, and APM Terminals.
What are the processes involved in turning old tyres into recycled products, and how long does it normally take?
FREEE Recycle currently has an installed tile production capacity of 400m2 per day, a mat production capacity of 3200m2 per day, and a tyre recycling line with a combined capacity of 1450kg of crumb rubber per hour which sits on five acres of state-of-the-art tyre recycling, rubber mat making and tile manufacturing facility on the Abeokuta-Ibadan Expressway, Oyo State. Our business is heavily invested in the provision of three major services: tyre recycling, which involves turning the used tyres into crumb rubber which is the raw material used in the production of rubber tiles and mats; tile and mat production, which involves the use of FREEE special recipes for the production of rubber tiles, rubber mats, and other rubber accessories; and steel smelting production. Our steel smelting facility has a furnace capacity of 0.5 metric tons per hour. The steel bars created would be sold to steel manufacturers in-country or be further processed into nails and or binding wire to be sold on the open market.
Have you faced any technical challenges while working with old tyres, and how did you overcome them?
Waste tyre recycling is a complex industry that requires technical expertise, and investment in specialised equipment among others. Some of the technical challenges we have faced include the availability of local spare parts because all of our recycling and manufacturing equipment was imported. Nevertheless, we are actively collaborating with local contractors to develop high-quality mechanical components that can serve as supplements to our recycling and manufacturing processes.
We also had a challenge with technological know-how in Nigeria as we are the first to do what we are doing at this scale. Hence, technical support for our equipment and operations has been quite challenging. We, however, received major technical support from BASF and the Federal Government through the Federal Ministry of Trade and Investment which provided some critical support when needed. As a pioneer waste tyre recycling and manufacturing company, we invested in training our staff members extensively starting from the ground up, given that the necessary skills required for our business were uncommon.
The limited power supply and high cost of electricity proved very difficult for us commercially. Relying on privately generated power is very expensive over the long run and obtaining funds for a capital-intensive business like tyre recycling at double-digit rates has left much to be desired in our day-to-day cost-efficiency drive. Foreign exchange sourcing has indeed presented a challenge in our business operations. As previously mentioned, all our equipment and spare parts are sourced internationally. This situation has a direct impact on our business operations as we are continually affected by the rising FX rates.
How many workers do you have and are they well-paid?
The facility has a total number of 159 full-time workers. Our team comprises skilled and capable individuals who are dedicated to enhancing our processes and product quality. One hundred per cent of our workforce are Nigerians. Our comprehensive employee compensation package includes a competitive base salary and additional benefits such as overtime allowances, pension plans, and others.
Who are the major users of your products?
Our products find application in various sectors, including educational institutions, residential, commercial and industrial settings, where heavy machinery is used). Currently, we are in the process of expanding our product line to include expansion joints for the construction industry. We are currently in the certification stage for this product line. We also plan to use our products as underlays for patios and pool areas and explore other potential applications of our products in the marine industry for use like marine fenders. With sufficient funding allocated to our research and development efforts, we will be able to broaden the applications of our products.
What role does innovation play in the recycling process, and how do you continually come up with new ideas?
Our business processes are driven by innovation and efficiency. When we recycle these tyres, not only are we preventing the burning of tyres that pose risks to our environment and health, but we are also creating jobs and opportunities for hundreds of people through our value chain.
Are there any specific skills or training required to work with old tyres for recycling, and did you have to learn any of these skills along the way?
We built technical knowledge, particularly in understanding the composition of tyres and the recycling processes involved. This knowledge helped in effective tyre sorting, processing, and recycling. We built safety training, particularly in the handling of tyres during cutting, shredding, and processing. Proper safety training and the use of personal protective equipment became essential to prevent accidents and injuries. We also held periodic safety training; the operation of tyre recycling machinery, including shredders, grinders, and granulators, requires specific training to ensure safe and efficient processing. We became equipped with quality control processes to identify and remove contaminants, ensuring that the recycled rubber products meet quality standards. We also built maintenance and repair of recycling equipment to minimise downtime and ensure operational efficiency.
How do you ensure the safety of your employees in such a business?
The safety of all personnel is of utmost priority to us. We are committed to ensuring the safety of every worker who steps foot on the premises. Our employees are regularly trained on the best health, safety and environmental measures at the factory. We also carry out fire drills and other critical safety training at the factory to prepare all workers for any unforeseen eventualities at the factory. All workers and visitors are issued protective gear upon entry into the business premises and signages are put at strategic locations to provide safety protocol advisory to all individuals in our factories.
What kind of impact do you hope to make on the local community and the environment through your recycling efforts?
Our recycling efforts are aimed at creating a positive and lasting impact on the local community and the environment. By reducing waste, conserving resources, promoting economic growth, and fostering environmental awareness, we aspire to contribute to a more sustainable and vibrant community. We also own and operate our FREEE vocational centre where local youths and women can be trained and empowered to utilise our products such as fibre to make bean bags and household furniture.
Do you have any partnerships or collaborations with local and international organisations that have been instrumental in your journey?
Our partners include APM Terminals, WACT, and the International Red Cross Society. We recently executed a memorandum of understanding with APM Terminals to recycle their waste tyres across their various locations.
Do you think there are still factors limiting the capacity of women to become successful entrepreneurs in Nigeria?
I am a woman who believes in doing the best always regardless of the circumstance. I am grateful to be part of a team providing environmental solutions to the world at the time we need it the most. It is important to emphasise that making a positive impact in such a new industry should not be constrained by gender norms or industry demographics. Focusing on building a world-class recycling company to effectively manage a substantial portion of annual waste demonstrates our dedication to environmental responsibility and sustainability, which is a noble endeavour, irrespective of gender or industry stereotypes.
In what ways can your journey as an entrepreneur in Nigeria influence girls and women in Nigeria?
Indeed, increasing the participation of women in industries traditionally dominated by men is not about competition but rather about harnessing the diverse talents, perspectives, and ideas that women can bring to the table. It is about recognising that everyone, regardless of gender, should have the opportunity to pursue their passions, contribute their skills, and make a meaningful impact on society. I am happy that our business operations are setting an inspiring example for others who may aspire to break down barriers and make a positive difference in their chosen fields.