Industrial Demand for Recyclables P R E S E N T E D B Y K R I S T - - PowerPoint PPT Presentation

P R E S E N T E D B Y K R I S T I N S M I T H A U G . 1 5 , 2 0 1 3 2 0 1 3 T E N N E S S E E S Y M P O S I U M

Industrial Demand for Recyclables

Operation Green Fence

Operation Green Fence

Operation Green Fence

Increased inspections + Load rejections + Stricter licensing enforcement = Delays at the port, Fear of shipping to China

Operation Green Fence

8%

Green Fence

Where is material going?

Demand for Recyclables

• Paper
• Plastic
• Aluminum

Paper

Company Name Headquarters Recovered Paper Consumed

• No. of Mills

Grades Consumed International Paper Memphis, TN 5.0 million 31 (excludes chip mills) OCC, SOP Rock-Tenn Norcross, GA 4.4 million 29 (containerboard, coated and specialty mills) OCC, ONP, DLK, Mixed Paper, Boxboard Cuts Cascades Kingsey Falls, QC, Canada 2.6 million 99 OCC, ONP, SOP Georgia-Pacific (Park of Koch Industries Inc.) Atlanta 2.5 million est. (minus international) 300 OCC, Mixed Paper Resolute Forest Products Montreal 1.65 million 18 (pulp and paper mills) ONP Newark Group Cranford, NJ 1.5 million 8 paperboard mills OCC Sonoco Product Co. Hartsville, SC 1.4 million tons 13 OCC, ONP, DLK, Mixed Paper, SOP, Tube Scrap SP Newsprint/White Birch Paper Greenwich, CT 1.01 million 2 ONP Pratt Industries Conyers, GA 1 million 3 (recovered fiber mills) OCC SCA North America Philadelphia 750,000 4 SOP Kruger Montreal 770,000 9 ONP, OCC Caraustar Austell, GA 445,000 6 OCC, DLK, Mixed Fibrek Inc. Montreal 423,500 3 (2 recycled fiber mills) N/A Longview Fibre Longview, WA 418,624 7 (paper mill and box plants) OCC, DLK Greenfiber Charlotte, NC 400,000 8 ONP Orange County Container Group City of Industry, CA 348,000 17 OCC, Mixed Paper Catalyst Paper Richmond, BC, Canada 340,000 4 (1 consumes recycled fiber) ONP, OMG Kimberly-Clark Dallas 300,000 112 (5 of which consumed recycled fiber as of 2009) SOP Boise Inc. Boise, ID 217,000 11 SOP NewPage Corp. Miamisburg, OH 147,000 8 (1 recycled content mill) n/a

Recycling Today, February 2012

Paper

— International Paper

¡ $288 million 2Q Earnings ¡ Consumer packaging profits of $52 million

Earnings impacted by higher sales volumes and lower manufacturing costs.

Paper

— RockTenn

"Our quarterly adjusted earnings of $2.16 per share, up 93% over the preceding quarter and 127% over the prior year quarter, reflect the continued substantial improvements we are making in operating our businesses, executing capital projects and executing our sales and pricing strategy…our earnings for the fourth quarter and the next fiscal year should also be sharply higher than our earnings for the comparable prior year periods.” –James A. Rubright, CEO

Paper

— Pratt Industries

¡ Buying large quantities of mixed paper ¡ More discriminating in loads

Paper

Source: AF&PA

Plastic

Plastic

— NAPCOR 2011 Report on Postconsumer PET

Container Recycling Activity

¡ 4% increase in containers ¡ 2.4% increase in in PET resin by weight

Plastic

Source: NAPCOR

Plastic

— Additional Volumes

¡ An increase in the total volume of bottles available for

recycling

¡ An approximate 21 million pound increase in CRV collections

in California;

¡ A 9 million pound increase in North Carolina, a result of the

landfill ban on plastic bottles;

¡ New commercial recovery efforts.

Plastic

— This progress was countered by:

¡ The full impact of lightweighting efforts in all categories of

containers

¡ A drop in deposit program collections due to lower CSD sales ¡ Curtailment or discontinuation of publicly initiated collection

programs in various parts of the country due to budget concerns

Plastic

— U.S. Reclaimers

¡ Imported 105.8 million pounds of postconsumer bottles ¡ Total purchases of 1.07 billion pounds of material ¡ Increase of 182.3 million pounds over 2010 ¡ 18 percent increase in purchases from 2010

Number of reclaimers increased from 18 to 23 in 2011!

Plastic

— Exports

¡ Dropped by 99 million pounds ¡ 634 million pounds or 39.5 percent ¡ Smallest export presence since 2005

Plastic

Capacity exceeds the amount of material collected!

Aluminum

Aluminum

— Novelis

¡ 11 countries ¡ 11,000 employees ¡ $11.1 billion in revenues

Aluminum

Aluminum

— “The outlook for growth of value-added rolled

aluminum has never been stronger…”

• Phil Martens, CEO, Novelis

Aluminium

— The future is looking good!

¡ Aluminum beverage can market projected to grow by 4% to 5%

annually

¡ The automotive sheet market 25% growth per year ¡ Specialties like electronics projected to grow by 6%

Aluminum

— Novelis “80% Commitment”

¡ 2010 – 33% ¡ 2011 – 39% ¡ March 2013 – 43% ¡ August 2013 – 43% ¡ 2015 interim goal of 50%

Aluminum

Novelis evercan

Made with a minimum of 90% recycled aluminum.

The End

— Kristin Smith

Managing Editor, Recycling Today Media Group KSmith@gie.net