7 CIRCULAR BUSINESS MODEL The case of a tire recycling plant in the Bio-Bio Chilean region Camilo Angel Peña Ramírez, Mario Vidal Sanhueza, Gonzalo Carcés Rodríguez and Sheila Serafim da Silva Introduction Economic market competitiveness requires an entrepreneur to rely on tools that allow him or her to achieve the maximum profitability of his/her business, using management and innovation tools to keep up to date in the market. This involves complying with environmental regulations, which enable generation of a quality product that is economically attractive to the consumer and environmentally friendly. In this context, the incorporation of the Circular Economy (CE) into the business model has emerged as an alternative to increase efficiency in the produc- tion process and propose changes in the value chain (Mouri, 2016). In this chapter, a business model for an unused tire recycling plant under the guidelines of the CE will be developed as a practical case. Extended Producer Responsibility (EPR) is a strategy whereby producers assume responsibility for managing the collection and recovery of used products, together with their classification and treatment for eventual recycling (Monier et al., 2014). Although there are differences in the design and products to which it applies, EPR is implemented in the United States, Canada, most of the countries of the European Union, Australia, Japan, and also the neighboring, countries of Brazil and Colombia (Almeida, 2006). In Chile, approximately 48,000 tons of unused tires are generated per year (almost 50% comes from freight veliicles: trucks). Regarding the final destination of unused tires, 80% is destined for informal landfills (GIZ, 2011), the remaining 20% is set to go to the eight authorized landfills in the Bio-Bio region, winch charge about sixty-five dollars per ton received (GIZ, 2011), affecting the operating costs of both transport companies and tire distributors. The charge covers the receipt of tires, which is a requirement of the legal regulations. However, the value of the amount charged is regulated by the law, as established periodically in accordance with public tender.