Newport Beach, CA June 22, 2016

Transcription

1 Newport Beach, CA June 22, 2016

2 Overview About Avangard Innovative Recycling Rates/Availability Collection Mechanisms Sources of Commercial Film Streams Examples of Commercial Film Reclaimers Challenges Market Factors and Outlook 2

3 About Avangard Innovative Avangard Innovative is a worldwide premier sustainable solutions provider, and the largest recycling company in the Americas. Avangard Innovative assists customers in 12 countries by helping them analyze opportunities to reduce waste, monetize recyclables and helping them achieve sustainability goals through smart Technology and data analytics. By introducing disruptive technology and best in class services, AI delivers true profitability through recycling revenue and cost savings. These services have been a huge profit center for Avangard Innovative s Environmental Partners. Avangard Innovative recycles more than 700,000,000 lbs. of material each year, including: 550,000,000 lbs. of OCC (equivalent to 4,675,000 trees) 150,000,000 lbs. of plastic scrap (equivalent to 825,000 barrels of oil saved, 247,500 cubic yards of landfill space, 1.8 trillion BTUs of energy) 3

4 Smart Technology Our Natura Smart Technology makes the recyclables process transparent and trackable. Smart Balers weigh, photograph and barcode each bale. State-of-the-art automation allows us to scale to any size and track recyclables anywhere multiple countries. We provide intelligence where you need it. We measure recyclables in waste through our Capture Percentage Rate TM index. More recyclables create more revenue and lower waste costs. 4

5 Recyclable Recovery Success Waste & Recycling Stream Design 25% Value Source Commodities Price 10% Other 10% Avangard Innovative uses proprietary technology to dramatically decrease or eliminate the cost of processing waste while increasing profitability. Equipment 15% Natura Management System & Analytics 25% Smart Technology 15% 5

6 Recycling Rates 2014 PET Bottles Billion lbs for 31% Recovery HDPE Bottles Billion lbs for 33.6% Recovery split into 2 Grades Natural/Dairy Grade Bales or Homopolymer Colored Bales or Copolymer PP Mainly Tubs and Lids Million lbs HDPE Bulky Rigids 438 Million lbs PE Film 1.17 Billion lbs for approximately 11% Recovery 85% from Commercial Streams Volume is there, we need to move the needle. 40% Rate for bottles adds another 730MM lbs 20% Rate for film adds another 880MM lbs *PET Baled Bottles 6

7 Collection Mechanisms Collection varies in states with deposit legislation to single-stream curbside collection, drop-off, and commercial scrap collection Bottles and Rigid Plastics PET, HDPE FM, HDPE and PP Injection Deposit States equates to better quality bales, higher prices, and better yields Single-stream collected bottles equates to lesser yields due to contamination levels Grocery Store Rigid Plastics HDPE and PP Film recovery - LL/LD/MD/HDPE MRF s Challenges (curbside collection) Screening and separating equipment Quality of bales Retail Return Programs Commercial Film Recovery at the generators Biggest opportunity 7

8 Film Sources by Vertical Grocery LLDPE Grade A LDPE Grade A LDPE Grade B PE Retail Return Mix Furniture PE Furniture Mix of Film and Foam 3PL LLDPE A and LDPE B Other Retailers with DC s Electronic Assembly LDPE Foam and Grade A/B 8

9 PE Commercial Streams LLDPE Clear Grade A LDPE Clear Grade A LDPE Clear Grade B LDPE Furniture Mix Stream PE Foam Purge PE Retail Bag and Film *LLDPE Grade A *LDPE Grade B *LDPE Grade A 9

10 PE Commercial Streams *LDPE Loose Foam *LDPE Foam Purge Hot Melt Densification *PE Retail Film and Bag *LDPE Furniture Mix 10

11 Reclamation Process and Challenges Many challenges around the reclamation process of post-consumer plastics recovered. Bottle Reclamation: Contamination in single-stream bales and final yields New Packaging design with shrink-sleeves or additives PP caps by weight in HDPE PET and HDPE Bottle Consistency design win! Easy to mechanically sort VS Film Reclamation: Variation in material structure within a given bale, MI, Density, Additives Washing of film has its challenges Dry line processing Filtration Technology Finished Quality Concerns Smell Mechanical properties variation 11

12 Market Factors Threats New PE virgin capacity in the Gulf Coast and other areas Export Demand for film Variation of plastic film structure in any given stream Keys to Success Technology Advancements in processing Washing Filtration Mixing Compounding Reclaimer/PCR Producer and Convertor Collaboration R&D Color Feedback Adaptation to material stream with some variation 12

13 Market Outlook Pricing at source is subject to many factors Grade of material Quality Most sources have labels Contamination Supply/Demand Economics Lack of Index Scrap to PCR conversion costs Variable washing or not, sorting costs, yields PCR Pricing - indexed to virgin? 13