Who are the European Recycling Company Ltd?

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1 Who are the European Recycling Company Ltd? ERC is part of SOEX Group of Companies, the largest clothing re-wear and recycle company in the world, representing an unparalleled global clothing and textile collection, sorting, reuse, recycling and redistribution network that is committed to the very highest standards. The SOEX group has over 2,500 employees, dedicated to sort, grade and redistribute the 1,000 tonnes that arrive every day at our facilities worldwide, handling over 1 billion garments every year. All UK and European collections are shipped to our plant in Wolfen (address: is SOEX TextiIsortierbetriebsgeseIlschaft mbh, Holzplatzstr Bitterfeld-Wolfen), which is covers an area of 80,000sq m. The clothing is sorted to over 400 grades, higher than anywhere else in the world. The centralisation of unwanted clothing to our European recycling plant offers significant benefits to both the council and to the wider environment, in terms of sustainability, expert handling and the ability to deliver the right products to the right markets. As you will see from the image below, the goal of the SOEX group is to initiate a closed loop recycling process for clothing which cannot be re-worn. This can only be realised through a significant volume base, far in excess of the volumes collected by most individual companies in the UK alone. To achieve this, SOEX works with Local Authorities, as well as waste companies and the commercial sector to supply raw reprocessed materials to major fashion retailers, including H&M, Puma, Adidas and other global brands who are committed to working towards cradle to cradle manufacturing. Only SOEX are able to guarantee the massive volumes required by these companies for this process to work.

2 Whilst most of the UK textile collection companies export UK unwanted clothing overseas, the benefits of utilising the SOEX Group are; The right clothing gets to the right markets. Higher percentage of clothing worn. Higher percentage of clothing re used and recycled. Lower carbon footprint derived from locally collated collections, negating the need for heavy goods vehicles in the collection process, which represent greater dangers to the public on site, and on the road Centralised mass handling, with an unprecedented volume base, ensuring greater efficiencies in all aspects of the collection, sorting and distribution processes. Closed loop recycling for raw materials, cutting global reliance on vital resources, such as fossil fuels and water All resulting in lower landfill and a fully sustainable process.

3 SOEX skilled workers are continuously trained to ensure that the sorting process always ends up with the right products. They are supported by a central computer system which controls the entire sorting process and connects to the customers requests. Each criterion for the sorting process bears its own code just like every clients order. In this way SOEX ensures that the exact amount and contents ordered by our customers around the world is picked, packaged and delivered, which in turn ensures that only what is required is sent to any of our 85 destination markets, ensuring sustainability, reducing unwanted textile waste and guaranteeing optimal value for all collected materials. For clothing that is not suitable for the rewear markets, our own in house fully computer controlled recycling unit operates 24 hours a day, every day of the year (with the exception of maintenance).

4 The unit can produce multiple compound materials for the manufacturing industry to suit exact needs and individual specifications. Products include woollens, fibres, cottons, acrylics etc. Pulled fibres can be supplemented by new fibres resulting in a homogenous mixture, custom tailored for manufacturing. The result is a mixture, custom-tailored to a customer s exact needs industrial products that, before SOEX, were virtually unthinkable in conventional textile recycling plants. Nothing is wasted in the recycling process. Tons of zips, buttons and rivets are extracted and recycled. The dust that is generated in the process is compacted into briquettes and used in the manufacture of paper and concrete. Even the plastic bags the clothes and shoes are collected in are sent for reprocessing. At the same time, SOEX is continuously seeking new markets and new customers so that the company can process every last bit of used textiles for industrial or preliminary products

5 with the goal of recycling 100% of used textiles and keeping in mind the SOEX Group s philosophy: ZERO WASTE. Current Materials Distribution Re-Use 62%, Re-cycle 32%, and Energy, Paper and Concrete Production 6% Re-use: 62 % comprising Re-wear as clothes 52%, and Re use as wipers 10% Re-manufacture/recycle: 32% comprising insulation products for the Automotive & Building Industry and raw materials for reprocessing through closed loop manufacturing Fibre dust for paper and concrete manufacture: 5% Less than 1% of all textile materials are sent for processing to Energy From Waste, and through our investment in new technology we are developing the means to reduce this still further. As the world s largest recycling agent for textiles, SOEX delivers high-grade used textiles to numerous international markets. A breakdown of end market locations is demonstrated in the image below. Emerging nations place high value on these quality products originating from the UK, because in terms of both design and durability, they are often superior to newly made products from Far East countries. Our experience in these countries proves that the market bears a lot of potential for further growth. For example, SOEX is breaking new ground by collecting for rewear and recycling end of life clothing and textiles from traditionally destination only markets, such as South Africa and Kenya. Closed loop textile manufacturing is our ultimate goal, and this can only be achieved through the successful retrieval of essential resources such as cottons, wool, acrylics etc., by providing the resources to divert them from landfills worldwide, and reintegrating them into the manufacturing process. The SOEX Group operates in 85 countries worldwide, collecting sorting, processing and selling over a billion garments every year. Our unique operating methods, combined with the sheer volumes collected and more outlets than any other organisation of its kind, ensure that SOEX provides the best value for all its partners.

6 The SOEX Group sorts used textiles to over 400 levels, meaning the tolerance levels for defining textile waste is greater than any other provider in the world. SOEX sort by material and textile types; denims, cottons, leathers, synthetics. By types of clothes: trousers shirts, jackets, blouses. By target groups: men, women, children. By brand, fashion styles, colours and quality types. By the specific requirements of our customers and specific markets. And by technical, legal and cultural aspects. Much of what may be regarded as waste by even the largest UK textile collection companies, can be turned by SOEX into new, marketable products thanks to a consistent, and state-of-the-art recycling process. Currently around 1 % of the collected textiles are sent for incineration, and nothing ends up in landfill. Now, and in the future the SOEX Group are engaged with recycling textiles still further and developing new products, new niche markets and all the time new ideas are emerging for acting in a socially meaningful way. Our shoe recycling programme is the most advanced in the world, Developed in conjunction with the University of Loughborough, the SOEX Group are leading the way to find commercially viable ways to reduce the global problem of Waste Footwear, and produce new products that have proven applications in a closed loop manufacturing process. Due to the small quantities collected, weights are estimated based on a 15kg per sack rule. This calculation works very well averaged out over the course of a daily collection run This procedure is repeated at each site and weights are reported to the ERC office daily. We are currently in the process of linking all activities, including on board scales to the new CMS Supatrak tracking and reporting system SDA II across the fleet. With the new systems currently being put in place, activities and rounds can be pushed to the device and accepted by our operatives in real time. Our back office staff can communicate directly with the driver and the driver can respond by using either quick replies or by sending a customised response. The device uses GPS to pinpoint the vehicle and crew member s location and GPRS to transmit the data to the back office system. The SDA II is compatible with both CMS SupaTrak back office systems and ERC s own in house systems. The device is mounted on the vehicle s dashboard and is fitted with a key controlled driver identification system. When the vehicle s ignition is switched on, the device prompts the driver to present the unique drivers key, by sounding for a predetermined period. This enables organisations to easily identify which driver is operating a vehicle at any given time. The SDA II reacts in real time to driver style and displays on screen alerts if the drivers performs inefficiently. This can help to reduce fuel costs, lower carbon emissions and promote safer driving. Real time tyre pressures alerts can also be displayed on screen, as can overweight alerts when integrated with the compatible weighing technology.. The ERC vehicle tracking system enables ERC to locate our operatives and reroute on achieve optimal service delivery. It also allows us to ensure that individual operatives are complying with specific council restrictions, e.g., no collections from location X after 8pm.

7 The tracking system provides route optimization, speed control and proof of visit where required. The ERC Edge system will enable local Authorities to compile their own reports using real time data, through our website. They will also be able to compare historical data from a number of predefined periods to establish trends in collection data. This data will be available through a secure portal on our website in ERC is a commercial collection company. We have a number of initiatives which aid the third sector. ERC have been working with Variety the childrens charity, since We are proud of this relationship and over the years have raised tens of thousands of pounds to help disadvantaged children here in the UK. Variety, the children s charity does not manage any aspect of our service, provide us with locations or any resources. All monies raised is a charitable donation from ERC to help with front line care for those who need it most. ERC works with charity groups and commercial enterprises throughout the UK to provide them with the means and to make money and brings employment opportunities to assist their chosen causes. In Richmond, for example ERC works with a local community group, Green Power Recycling Services to provide employment opportunities for young people with learning difficulties. In Scotland ERC assists groups like Alloa Community Enterprise to generate employment and income through its local recycling schemes, and many charities and third sector organisations rely upon ERC and the SOEX Group to provide them with the steady and reliable income streams they require to carry out the beneficial work they do for their communities. ERC also assists the Midlands Air Ambulance, the Children s Air Ambulance, and Kidney Research in their fundraising efforts.