Carolina Recycling Association: MRF Technologies and Trends In Processing: Kenny King March 25, 2015
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1 Carolina Recycling Association: MRF Technologies and Trends In Processing: Kenny King March 25,
2 Sonoco Business Segments Industrial Consumer Packaging Global Composite Cans Flexible Packaging Plastic Containers Global Paper Sonoco Recycling Metal & Plastic Closures Protective Packaging Adhesives Service Centers, Graphics Management and P-O-P Displays 2 Molded Plastics Global Tube and Cores
3 Sonoco Sustainability Commitment Sonoco will be a leader in creating, maintaining and enhancing a sustainable future for the benefit of its stakeholders through continuous improvement in operating performance, social responsibility and environmental stewardship. 3
4 Our Commitment to Recycling In the Carolinas Sonoco Recycling n Stand-alone recycling division of end user unique for a consumer packaging company n 15,000 recycling relationships with major retailers, manufacturers and municipalities n Globally recycle 3.5 million tons annually n Supplier of recycled materials to our own mills, and others n Integrated user of paper and plastics to manufacture packaging with recycled content n True cradle-to-cradle capabilities n 25 processing facilities United States n 16 facilities in the Carolina s (59% volume) n 5 full-scale single stream MRF s (Raleigh, Columbia, Onslow, Charleston County, Greenville) n 1 recently converted Commercial SS Plant (Charlotte) Sonoco Recycling locations Municipalities served 4
5 How Are We Contributing to Increasing the Population Served? n Partnering with Municipalities to increase Participation n Awareness / Education n Positive / Negative incentives n Public Events (E-Waste Recycling, Paper Shredding) n Visual Communication / Bin Stickers n Partnerships n NC: DENR, RBAC n SC: DHEC, SC Department of Parks & Recreation, Palmetto Pride, n SERDC n Inaugural Partner: CVP - The Recycling Partnership 5
6 Single Stream Trends, Challenges & Potential Solutions: Collections Challenges Potential Solutions n New roll carts increase volume collected by 30%, but also increase residue from traditional (3% - 5%) to (10% - 12%) n Bikes, large rigid plastic toys/containers, etc. which have to be removed before getting to the sorting equipment n Side Loaders / Compactor s n Contamination of fiber bales creates out-throws for mills using recovered paper for production of end products n Education / Partnerships n SR 3 high tech education centers (Raleigh, Columbia, Charlotte) n NC DENR / SC DHEC n SERDC n CVP Recycling Partnership n Investments in sorting equipment (OCC, Scalping Screens) 6
7 Single Stream Trends, Challenges & Potential Solutions: Fiber, Plastics Separation Challenges n More Mixed paper less ONP n Plastics 1 & 2 are higher valued plastic commodities n 7% of volume mix & 20% of revenue n Adding other grades causes difficultly w/ sorting & higher mix driving lower market value for both processors and recycling programs n Storage / Space n Must have a holding area for the lower volume grades. Must be staged efficiently (Older Plants may have space constraints) n Downgrades / rejects / quality claims n (rejects end up in landfills double the transportation = even more environmentally unfriendly) n Multiple Fiber Screens (require multiple storage areas before baling occurs) n New Optical Sorting Equipment n Takes out basic commodities (Extra Expense out weigh manual sorting?) n Partner with municipalities Define the goal of the community n Find end users & markets before accepting the newer grades. n Always remember the deeper you dive the more it costs to recover 7 Potential Solutions
8 Single Stream Trends, Challenges & Potential Solutions Glass, Residue Challenges n Cost prohibitive n 38% of SS mix lack of market value (Glass, Residue) n 0% of Revenue (cost to processor) n Labor costs for manual sorting n Equipment wear & tear n Lack of end users n Mixed glass is concern for end users Potential Solutions n Partner with glass & cullet manufacturers n Upgrade to top of the line clean-up equipment n More options to generate value n Sort glass out of system at beginning of line n Education to help clean up residue increases 8
9 Weighted Average Price Trends Glass 19.05% 26.64% 26.83% Aluminum 0.94% 0.98% 1.01% Steel 1.61% 1.96% 1.55% Mixed Paper 8.39% 19.97% ONP # % 29.06% 13.61% OCC 19.16% 19.76% 20.87% HDPE Col 1.78% 1.55% 1.38% HDPE Nat 1.01% 0.99% 0.92% PET 4.15% 4.05% 3.95% Mixed Plastics 0.30% 0.31% Residue 3.10% 6.90% 11.15% 9
10 Questions Kenny King Sonoco Recycling, LLC 10
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