Key Advantages of New Process (cont)

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1 Key Advantages of New Process (cont) In HDPE we can sort bottles by resin grade World First Special spectroscopic sorter to remove co-polymer HDPE from homopolymer HDPE New process includes brand new capability of sorting flakes using NIR and removes any non-pet particles - 8 NIR sorting units for bottles to produce a highly pure PET & HDPE stream Starlinger PET extrusion system with vacuum venting Fewer black specs due to ultra-fine filtration system on the extruder Solid Stating Polycondensation (SSP) reactor for decontamination to food contact quality The Starlinger PET & HDPE recycling process has a LNO from US FDA Latest washing technology that has improved capability of glue and label removal SSP unit upgrades the Intrinsic Viscosity (IV) of rpet resin to virgin PET quality and consistency (IV - 0.8)

2 Process includes sorting by Colour and NIR Spectroscopy Source: TITECH GmbH Colour and NIR bottle sorting systems widely used in industry NIR flake sorting systems have recently been developed Visy use this system to separate PVC and other flake contaminants These systems allow highly accurate sorting of particles Purity of streams after flake sorting above 99%

3 Intensity Polymer material spectroscopic identification Intensity 100 UV Invisible VIS Visible colour NIR Invisible Wavelength nm Wavelength Color detection with in VIS Material detection within NIR Scanning relevant wavelengths within the NIR spectrum Systems detect the unique fingerprint of polymers with high precision

4 Sorting HDPE Milk Bottles with NIR Homoploymer HDPE s Natural Milk bottles Other HDPE s Spectroscopic differences exist between grades of HDPE

5 Starlinger Melt Filtration, Extrusion and Decon Starlinger extrusion & SSP unit has been selected to produce high quality rpet resin Extruder has high vacuum units and ultra-fine melt filtration system Gentle processing of resin and removal of black specs and any solid contaminants After extrusion the SSP reactor units upgrade IV of rpet resin and produces material with AA levels below 1ppm Unique reactor floor ensures uniform residence time ensuring all pellets are decontaminated to food contact quality System has in-built FDA and EFSA parameters to produce food grade materials - Satisfies requirements of ILSI, EFSA and LNO from US FDA

6 Key aspects of Starlinger Decontamination system Preheating and decontamination in Starlinger s DeCon system Unique floor in reactor controls residence time for all HDPE fakes ensuring consistent and measured decontamination

7 Visy Material Compliance Checks & Testing Audited QAS system / Material Technical Data Spec Sheets Test quality of input flake for Glue, PVC, Coloured particles, Labels in PET and HDPE flake prior to extrusion Each batch of material (20 tonnes) leaving the site is tested by GCMS. Smithfield site installed an Agilent GCMS & have hired an analytical chemist for the lab to test all materials. Headspace volatile tests to check material & identify any substances. Test for Limonene & AA levels (as required by TCCC, Atlanta) Measure IV (rpet) and MFI (rhdpe) Test colour of resin (L,a,b values) every 2 hours after SSP reactor. Aiming to install Injection Moulder to mould plaques to check for black specs & colour of PET resin

8 Key Question How do We Know Food Grade Recycling Is Safe? The Challenge Test & Measured Decontamination Efficiency is How

9 Recycling Process - Chemical Contaminant Testing Q: How may the ability of a recycling process to remove contaminants from plastic containers or packaging that has been subjected to consumer misuse or abuse (e.g., through storage of pesticides or automotive chemicals, paints, solvents) be demonstrated? FDA and EFSA recommend simulating consumer misuse by exposing polymer to chemicals, then running the challenged polymer through the recycling process. The contaminants are thoroughly mixed with the flakes, and sealed and stored for two weeks at 40 C with agitation. This approach represents a worst-case scenario, that is, all material entering the recycling stream is assumed to be contaminated and toxic.

10 Surrogates Which Chemical Surrogates are selected by US FDA and EFSA? Chloroform and toluene are components of cleaning solvents. Toluene also behaves in a similar manner to benzene Benzophenone is a suitable substitute for non volatile polar pesticides such as Diazinon, also Benzophenone is widely used as ink curing agent and has been reported to have carcinogenic properties; Tetracosane or Lindane is a good representative for the longchain hydrocarbons that comprise motor oil. A heavy metal salt such as copper(ii ) 2-ethylhexanoate, a substitute for the toxic salts commonly used in herbicides, would complete the range of properties noted used for PE and PP, etc.

11 Key Compliance Documents US FDA Letters of Non Objection for Starlinger process for production of rpet and rhdpe. EFSA Scientific Opinion on safety evaluation of the Starlinger technology used to recycle post-consumer PET for food contact. Fraunhofer IVV Expert Opinion Letter verification of process decontamination capability & results Starlinger technology US FDA & EFSA built-in parameters on SSP and DeCon reactors Independent assessment of food contact compliance of Visy rpet and rhdpe resins by Smithers Pira (UK) Passed Overall Migration and Specific Migration for US FDA & EC In the EU and Nth America Starlinger system being used to supply rpet to leading brand owners Coke, Pepsi, Nestle, Danone, etc.

12 Summary 1. Visy has received all the key regulatory approvals US FDA/EFSA 2. Visy s rpet and rhdpe resin has been approved by leading global brand owners who have many years experience of using rpet and rhdpe. 3. The feedback has been very complimentary and highest possible levels of rpet (100%) and rhdpe (50%) have been approved. 4. Visy is testing every batch of resin that is produced for food safety compliance. 5. A Certificate of Analysis / Conformance is issued and supplied with resin delivery same as Virgin resin. 6. Visy is interested to further collaborate on opportunities for market innovation & leadership in Sustainable Packaging

13 Thank you - Any Questions? Robert Dvorak: robert.dvorak@visy.com.au Mob: