Two enterprising businessmen on Guam are tackling the problem of how to dispose of the island’s growing piles of tires. They plan to make money at each step of the recycling process.

Marianas Environmental LLC is a newly formed company that is bringing to Guam a whole new way of how tires are recycled and turned into cash. Company officials say they have plenty of supply to meet demand — a fundamental piece of the equation necessary for a successful business.

Charles V. Esteves and Greg D. Perez president of Perez Bros. decided they would take advantage of Public Law 27-127 which allows for special tax benefits for companies willing to take steps to start a recycling program on Guam.

James F. Baldwin attorney with the law firm of Klemm Blair Sterling & Johnson and author of the company’s business plan assisted in cementing the deal. He told the Journal “The principals are very concerned about the environment and one day while they were watching from afar another infamous Guam tire fire the idea struck.”

Soon the two were on the phone to (Company name in morning) in Australia to see how tires were dealt with there.

“We learned that there is a very lucrative market for granulated and ground rubber but that required a plant — so we asked what that meant and the answer we heard was most satisfying ” Esteves said. “We will build a plant on Guam.”

What Esteves and Perez learned was that the market for processed tires is booming and the company they were talking with could set them up with the machinery needed to grind crop and magnetically extract metal from tires. Even more attractive was the fact that the same company would also purchase all the newly created “raw” material from them.

Baldwin secured the necessary exclusivity agreements and oversaw contracts with the Australian company which will provide all the machinery needed to perform the refinery action. “We have the exclusive rights and by being first we’ll be able to help Guam and later on the rest of Micronesia because the real money is in the end product — the granulated and pelleted rubber ” he said.

The tires are baled into blocks under high pressure. Once that process happens there is virtually no threat of fire. Next in the refining step the tires are sent through a plant that chops and granulates the rubber and the steel threads are magnetically removed. “Guam is going to see a new revolution because now all these tires that have piled up in places for years and years which are breeding grounds for mosquitoes and generally a health hazard will go away and quickly ” Baldwin said.

The plant will be initially set on Perez Bros.’ Harmon property with full operations to begin in April. “The goal is to move closer to the port if the industrial plant there is developed to cut transportation costs ” he said. “We’ll get a good portion of the money that holders of tires have been paid by consumers and we are going to make money from selling a raw product — how cool is that?”

Perez said while this move represented a major investment the company would reap rewards because of laws set up to help jump-start recycling programs on Guam. “The landfill is coming and it is going to change the way we all deal with garbage from here on out. Why not be on the cutting edge with tires?”

Perez will have to serve as manager of the company while Esteves is away. Esteves has been called up for military service in Iraq. His deployment could be for as long as 18 months.

Baldwin said of the company’s future “The company is going to make money on both ends and that is what the recycling idea is all about. There is a challenge out there and for those that can answer the call — arguing time is over. Find a way to capitalize in this recycle movement. It’s here; it can’t be stopped. The market is that good.”

End-use applications for recycled tires that Marianas Environmental LLC will provide include AstroTurf applications for equestrian tracks around the world; coatings and sealants for roofing applications; insulation and irrigation systems. MBJ