KUWAIT—More than 42 million old vehicle tires dumped in Kuwait’s sands have started to be recycled, as the Gulf state tackles a waste problem that created one of the world’s largest tire graveyards. The massive dumpsite was a mere 4 miles from a residential suburb. Residents were bothered by periodic large fires releasing noxious black smoke. But this month Kuwait, which wants to build 25,000 new houses on the site, finished moving all the tires to a new location at al-Salmi, near the Saudi border, where recycling efforts have begun. At a plant run by the EPSCO Global General Trading & Contracting Co., a  recycling company, employees sort and shred scrap tires, before pressing the particles into rubbery colored flooring tiles. “The factory is helping society by cleaning up the dumped old tires and turning them into consumer products,” said EPSCO partner and CEO Alaa Hassan from EPSCO, adding they …