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Glass Packaging Institute – Industry Update

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1 Glass Packaging Institute – Industry Update
Bryan Vickers, GPI Carolina Recycling Association Annual Conference Myrtle Beach, SC April 10, 2013 Glass is ENDLESSLY Recyclable

2 About the GPI The Glass Packaging Institute represents the North American glass container industry: 6 member glass container producers 33 associate member supplier companies Through GPI, glass container manufacturers advocate job preservation and industry standards; provide education; and promote sound energy, environmental, and recycling policies.

3 About the GPI 48 glass container plants in 22 states comprise a $5.5 billion dollar industry 102 glass container furnaces produce approximately 30 billion glass food, beverage, cosmetic, spirits, wine, and beer containers annually The industry employs approximately 2,600 salaried and represented hourly employees in the five California glass plants, 380 in the Verallia Washington state plant and 220 in the OI Portland plant. Approximately 18,000 employees nationwide.

4 2011 U.S. Glass Container Shipments by Category
Source: Glass Packaging Institute (GPI)

5 2012 U.S. Glass Container Shipments by Category
Source: Glass Packaging Institute (GPI)

6 U.S. Glass Container Shipments & Production 2012 vs. 2011
Categories 2012 2011 Shipments Production Food -3.6% -0.4% NA Beverages +1.5% -8.9% Beer +2.0% +2.8% Liquor +0.8% +1.2% RTD Alcohol -9.2% -8.4% Wine +1.0% -0.3% Other +10.7% FLAT TOTAL +0.5% +0.4% Source: Glass Packaging Institute

7 GPI Industry Recycling Goals: Achieve 50% Recycled Content by 2013
First Objective: Preserve U.S. jobs in an “Energy Intensive, Trade Exposed” environment: Improve global competitiveness Reduce foreign energy dependency Support improved materials management models, many of which currently face serious economic and performance challenges

8 GPI Industry Recycling Goals: Achieve
50% Recycled Content by 2013 Second Objective: Drive industry sustainability initiatives Conserve energy Save raw materials Reduce air emissions … including NOx, SOx, PM, and greenhouse gases (e.g. CO2) “Reduce/Reuse” in all aspect of plant operations … water, cardboard, lubricants, electricity, etc.

9 Achieving the Goal To achieve goal must improve the quantity and quality of recovered recycled glass: Partnerships with stakeholders to improve glass recycling/recovery rates Improved data collection/analysis Effective legislative initiatives at federal and state levels A single-stream recycling best practices “SWOT” analysis, including processing technologies Expanded bar, restaurant, and hotel collection programs A consumer glass recycling “ethic”

10 Closed-Loop Glass Recycling
High-quality recycled glass = New glass bottles and jars =

11 Environmental Benefits of Glass Recycling
Glass is 100% recyclable; it has an unlimited life and can be recycled endlessly Over a ton of natural resources saved for every ton of glass recycled Energy costs drop about 2-3% for every 10% recycled glass used in the manufacturing process Six tons of recycled container glass used equals one ton of carbon dioxide reduced

12 Federal Activity: Glass Recycling-Related Issues
“Request for Comments” on U.S. EPA Municipal Solid Waste Report: Covers national recycling rates, including those for glass – Currently Under Agency Review GPI and member companies asked EPA to: Examine “end markets” prior to issuing recycling rates for glass, including distinction between container and diversion markets Examine “recovery” rates for the different collection programs (single stream, drop off, deposits, etc.)

13 Federal Activity: Department of Energy/CEQ
President Obama signed into law earlier this year legislation that includes consideration and a study examining the benefits of recycling in energy intensive manufacturing processes. Congress, through the DOE and the CEQ will begin working with stakeholders to determine study parameter this Spring. Glass container industry will seek a focus on input (i.e. use of recycled materials), rather than technology.

14 State Activity GPI and many member companies support policies and legislation at the state level that encourage closed loop recycling – recycling most likely to result in the reuse of collected materials in a manufacturing process.  In 2013, GPI and several member companies have testified in support of legislation to accomplish these measures in Iowa, Indiana, Maryland and Texas. Support is not limited to container deposit refund programs, but also bar and restaurant legislation.

15 Key Issue GPI is Following – Extended Producer Responsibility (EPR)
EPR is a financing mechanism now used in Europe and North America to partially fund packaging recovery and recycling systems. Packaging manufacturers have a responsibility to serve as, and develop, end markets to help maximize closed-loop recycling. Consumer deposit programs can be effectively utilized within an EPR system to create a more comprehensive and effective program. Deposits have proven to be highly effective to ensure quality recycling and are successful in many jurisdictions. At least 65% of recycled glass for GPI members is sourced from 10 states Many unresolved issues at the state level where EPR is being addressed. 15

16 GPI Academic Program: Participating Schools

17 Glass Container Outreach
Glass Packaging Institute website: Inside Glass Packaging monthly e-newsletter


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