July 27, 2017 2017 Conference 1
Who is WestRock?
Who is WestRock? 8 million tons of recycled fiber recovered annually Our vision is to be the premier partner and unrivaled provider of winning solutions for our customers. 250 + operating and business locations 3,370 patents granted and pending + 6 billion beverage cartons produced each year 40 + million corrugated containers produced each day 39,000 employees working in 30 + countries around the globe ~13 million tons of mill capacity annually www.westrock.com
WestRock s business segments Corrugated Packaging Containerboard Mills Coated white top linerboard White top linerboard Solid bleached linerboard Virgin and recycled linerboard Corrugated medium Kraft paper Pulp (fluff pulp, bleached market pulp, unbleached market pulp) Corrugated Container Corrugated containers to protect, ship, store and display products Foodservice containers Automated Packaging Systems 4
WestRock s business segments Consumer Packaging Consumer Paperboard Mills Beverage Solid bleached sulfate (SBS) Coated unbleached kraft (CUK) Coated recycled board (CRB) Uncoated recycled board (URB) Paperboard multiple packaging Packaging machinery Folding Carton Merchandising Displays Folding cartons Food service packaging Express mail envelopes Labels Temporary promotional and permanent point-of-purchase displays Partitions & Protective Packaging (RTS) Solid fiber partitions Corrugated partitions Die-cut paperboard 5
Our sustainability principles Performance We are dedicated to continuous improvement and creating value for our customers and our shareholders. Environment We are committed to improving the environmental impact of our operations and products, and 100% compliance with environmental laws. Innovation We develop products and services that help our customers meet their sustainability goals and support a sustainable value chain. Responsible sourcing We are committed to sustainable forestry practices and using responsibly sourced materials for all of our products. Respect A culture that values co-workers, customers, the environment and the communities where we live and work. The future As we grow, we remain focused on improving all aspects of our business and finding ways to exceed our customers expectations. 6
Our Sustainability Loop WestRock Recycling Manages 8 million tons of recycled material Consumer WestRock consumer packaging in curbside recycling received from haulers WestRock Paper Mills Over half of the paper recycled by WestRock is consumed in its own mills to create sustainable packaging Retail Consumer products are shipped to grocery chains in boxes and recycled by WestRock and ultimately processed in our mills WestRock Box Plants WestRock sustainable packaging designs are used for consumer products 7
Who is WestRock Recycling & Waste Services? 8
Who is WestRock Recycling & Waste Services? We are one of the largest integrated recycler and non-landfill based waste consolidator in North America 8 million tons of recyclables recovered and managed annually 5 million tons of recyclables consumed internally, annually 23 mills consuming recycled fiber, globally 22 recycling facilities in 12 states and 4 geographical regions 600 + employees in 22 recycling facilities, 1 fulfillment center and 4 sales, brokerage and waste services offices 700 thousand tons of recycled fiber generated at WestRock converting facilities annually and managed by WestRock recycling 400 thousand transactions annually 5 thousand supply points 2 thousand truckloads daily managed by our Fulfillment Center 29 countries where we sell recycled material which includes the US, Mexico, Canada and Puerto Rico 38 thousand locations in the US & Canada serviced by WestRock Waste Services which accounts for ~ $140M in managed waste spend www.westrock.com
Recycling Business Model S U P P L Y WRK Recycling Plants 1.0MM tons Brokerage Supply 5.0MM tons Trade Partners 1.1MM tons WRK Converting Plants 0.9MM tons Fulfillment & Optimization 8.0MM Tons WRK Mills 5.1MM tons Trade Partners 1.1MM tons Domestic Customers 1.2MM tons Export Customers 0.6MM tons D E M A N D 10
Recycling Regions Fiber supply ~9.0MM tons Fiber demand 4.0MM tons WRK Mill demand 0.2MM tons WRK Recycle Plants 5 Fiber supply ~12.0MM tons Fiber demand 8.5MM tons WRK Mill demand 1.0MM tons WRK Recycle Plants 5 Fiber supply ~9.0MM tons Fiber demand 5.0MM tons WRK Mill demand 1.2MM tons WRK Recycle Plants 0 Fiber supply ~19.0MM tons Fiber demand 12.9MM tons WRK Mill demand 2.5MM tons WRK Recycle Plants 12 11 WestRock Recycling Plant WestRock Consuming Mill
Recycling Facilities Recycling Locations Anchorage, AK Atlanta, GA (East) Atlanta, GA (West) Augusta, GA Bakersfield, CA Chattanooga, TN Chicago, IL Cleveland, TN Columbus, OH Fresno, CA Ft. Lauderdale, FL Huntsville, AL Indianapolis, IN Jacksonville, FL Knoxville, TN Lawrenceville, GA Louisville, KY Maple Grove, MN Nashville, TN Portland, OR Sacramento, CA Tampa, FL 12
WestRock Mill Recycled Fiber Grade Specifications Format
Why use Grade Specifications? Provide a system to measure supplier quality, performance and provide consistent feedback to the market that drive quality improvement. Work with our mills to establish and optimize feedstock supply recipes up the conveyor to meet board quality requirements in a cost effective manner. Gives the mills a blueprint of quality to follow good receiving practices based on a standard. We standardized processes with the mill for nonconforming bales, downgrade and rejection procedures to better communicate not only quality issues but safe loading and unloading procedures. 14
15 IRSI Cir: Year refers to IRSI grade specification
Source Requirements: Defines pre or post consumer grade to meet FSC standards. 16
Packing Requirements: Defines packaging requirements and allowances; minimum bale weight and other acceptable forms for this grade 17
18 Prohibitive Materials: Defines and lists examples.
19 Outthrow Contaminates: Defines and lists examples.
Unacceptable Materials: Defines and lists (Direct Food Contact Certification) 20
Outthrow Material OUTTHROWS: All papers that are so manufactured or treated or are in such a form as to be unsuitable for consumption as the grade specified. Fiber that degrades our quality or strength of the finished sheet Products that have fibers not recovered in our fiber selection system or go out in our fiber rejects. 21 Definitions
Maximum Allowable 5% 50 lbs.. in a 1,000 lb. bale or 100 lbs. in a 2,000 lb. bale. Excessive outthrows can be cause for the load of recovered paper to be down-graded in price and/or weight, and/or outright rejection. Examples: Excessive Non Domestic OCC Beverage Packaging Carrier Stock Chipboard & Boxboard Newsprint Office Paper Other Paper Tubes & Cores Outthrow Material 22
Beverage Packaging 23 Cores Outthrow Material
Prohibitive Materials PROHIBITIVE MATERIALS Materials that by their presence, in excessive amounts may make the product unusable as the grade specifies, or materials that may damage the equipment Products that may harm the paper machine equipment Materials that do not pulp 24 Definitions
Maximum Allowable 1% 10 lbs. in a 1,000 lb. bale or 20 lbs. in a 2,000 lb. bale. Cans Dirt/Rocks Glass Hot Melt Glue Metal/Foil Mill Wrappers/Headers Multiwall /Poly Bags w/residue Plastic Bags Plastic Objects Rubber Shrink/Stretch Wrap Styrofoam Wax Corrugated Containers Wood Prohibitive Material 25
26 Prohibitives
27 Prohibitives
Unacceptable Materials UNACCEPTABLE MATERIALS materials that by their presence, IN ANY AMOUNT, may pose a threat to human health and safety. WestRock s primary concern is the safety of our people that handle the OCC These materials threaten quality of final products for appearance and food contact packaging. 28
Unacceptable Materials Medical or Hazardous Wastes Poisonous or Deleterious Substances Food Wastes Free Flowing Liquids Sulfur containing papers like fireworks or fertilizer bags 29
Medical or Hazardous Wastes Bio hazardous Waste, also called infectious waste (such as blood, body fluids, and human cell lines), is waste contaminated with potentially infectious agents or other materials that are deemed a threat to public health or the environment. Medical Waste is waste generated in labs or clinical settings that is not contaminated, but could appear hazardous to outsiders. 30
31 Unacceptable materials
Topic: WestRock s Inbound Quality Evaluation Process
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