Company Name: BSG Tire Recycling
Location: Detroit, Michigan
Year Founded: 2020
Website: bsgtires.com
BSG Tire Recycling, a closed-loop recycling facility based in Detroit, Michigan, has earned the title of Global Star in the 2024 CO—100 Awards for its innovations in scrap tire repurposing.
Founded in 2020, BSG Tire Recycling has made a name for itself — both nationally and globally — through its commitment to environmental stewardship and cutting-edge recycling methods. As Detroit's only licensed tire recycling facility, the company keeps millions of tires out of landfills, instead reintroducing them as valuable materials for use across industries.
A mission-driven approach to global partnerships
BSG Tire Recycling was founded to address the illegal dumping, burial, and landfilling of scrap tires by pioneering sustainable uses.
"Several years ago, we noticed that there was a disconnect between the research that university scientists had discovered about how tires can be sustainably reused and recycled and how the typical scrap tire recycler handled old tires," said Ethan Dunn, Principal of BSG Tire Recycling. "We are connecting the latest science with the right commercial opportunities."
Today, the company has expanded into international markets, forming relationships with like-minded business owners in Canada, Italy, and China. These connections have provided a steady revenue stream and allowed BSG to enter the off-the-road (OTR) tire market. For example, BSG Tire Recycling secured a contract with the Canadian government to process tires for the country in the southern half of Ontario, which added a consistent $35,000 to $45,000 in monthly revenue for the company.
Dunn explained that these connections stemmed from curiosity about how to solve a problem.
"There were no barriers in my mind about who or where the solution could be found," Dunn told CO—. "Anyone that I thought could help us advance our mission was someone that I wanted to talk to and learn more from. This crossed all cultural, language, and physical barriers."
There is always more than one way to get to a goal, and the key in business is to find the one that works, not the one that you are emotionally tied to.
Ethan Dunn, Principal of BSG Tire Recycling
Pioneering technology for sustainable industry growth
The company's focus on innovation has driven it to adopt high-pressure water jet technology — a first-of-its-kind recycling process in North America. This technology, licensed from European partners who have spent over a decade refining it, allows BSG to recycle large-format tires into an International Organization for Standardization-certified rubber product, creating a sustainable, closed-loop process.
"Our European partners have perfected a process and developed a market for our material over the last 10 years," Dunn said. "Through this relationship, we have licensed the technology and intellectual property to manufacture here in the U.S. and sell globally."
BSG's approach has captured the attention of original equipment manufacturers (OEMs), many of whom are increasingly focused on meeting environmental standards and recycling regulations. According to Dunn, several large OEMs have expressed interest, with one stating it's the only technology capable of recycling their most challenging tire lines.
With a new plant expected online within the next 14 months and strategic agreements with the world's largest chemical compounder, BSG anticipates rapid growth in its first quarter. But reaching this point wasn't easy. Dunn described numerous obstacles the company faced along the way, including internal operational challenges, equipment issues, and cash-flow challenges. The key to overcoming those roadblocks has been focusing on the company's goal and being willing to pivot when the process isn't working.
"Don't get so caught up in the process that you can't be open enough to find a different path with less resistance," said Dunn. "There is always more than one way to get to a goal, and the key in business is to find the one that works, not the one that you are emotionally tied to."
Dunn also advised seeking insights from an informal advisory group that can offer you different perspectives.
"I've found that most of the issues I have had, someone else has had, and they are usually willing to offer guidance about how they got through it and offer a helping hand," Dunn added.
Streamlining operations for efficiency and impact
With a small team tackling large-scale assignments, efficiency in operations has been essential for BSG's profitability and environmental impact. Acknowledging the need for streamlined solutions, the team invested in a portable ramp and skid steer equipped with a grapple bucket, significantly reducing unloading times for their equipment-intensive operations.
"The highest costs in our business are the cost of labor and logistics," Dunn explained. "Our business was unloading material from semitrailers by hand for several years. Each 53-foot trailer contained between 1,000 and 1,300 tires. A team of three people would take nearly 1.5 hours to empty a trailer."
As logistics and hourly wage costs mounted, cutting into the company's fixed per-tire revenue, BSG introduced new equipment to simplify the process. This move exceeded expectations, reducing unloading times by more than 50% while requiring just one employee — ultimately delivering an impressive 35% return on investment.
Through each operational improvement, BSG has remained committed to its mission-driven approach.
"We know that it is possible to do well while doing good," Dunn said. "Our uniqueness is found in our willingness to ask questions and do things differently."
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