Glass Packaging and Sustainability – Global Approach Günter Lubitz, Vetropack Bülach, Switzerland World Packaging Days 2012, Split, Croatia

© VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach | Slide 2 Agenda 1.The Vetropack Group 2.Packaging Glass 3.Sustainability at Vetropack 3.1. Economical 3.2. Social 3.3. Ecological Use of Cullet (recycled glass) Batch (raw materials) and Cullet Preheating Lightweight Technology Hardglass 4.Summary

© VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach | Slide 3 1. The Vetropack Group  7 plants  4.2 bn unit sales  589 m CHF gross revenue  59 m CHF annual profit  85 m CHF investments  2,971 employees Bülach, Vetropack Holding Ltd Production Plants CH: St-Prex, Vetropack Ltd AT: Pöchlarn, Vetropack Austria GmbH Kremsmünster, Vetropack Austria GmbH CZ: Kyjov, Vetropack Moravia Glass, a.s. SK: Nemšová, Vetropack Nemšová, s.r.o. HR: Hum Na Sutli, Vetropack Straža d.d. UA: Gostomel, JSC Vetropack Gostomel

© VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach | Slide 4 2. Packaging Glass  Made from natural and abundant raw materials  Environmentally safe and 100% unlimited recyclability  Pure, inert, gas-tight  ultimate preservation of filled goods  Flow chart of production process

© VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach | Slide 5 3. Sustainability at Vetropack

© VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach | Slide Economical  Sustainability and long-term economic success are interdependent  Family company with long-term success before short-term profit maximization 3.2. Social  Socially committed – from the beginning  Comprehensive health and safety regulations  Meeting employees’ social requirements – irrespective of location

© VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach | Slide Ecological  Manufacturing Process – taking responsibility for our environment  Use of cullet (recycled)  Batch (raw materials) and cullet preheating  Product – taking responsibility for the product and its quality  Lightweight technology  Hardglass

© VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach | Slide Recycling Rates in Europe – 2010  Benefits of cullet use - 2.4% less energy per 10% cullet increase - 5.5% less CO 2 per 10% cullet increase  Effect for Europe - More than 12m tons of raw materials conserved - More than 7m tons of CO 2 avoided  Average cullet use of Vetropack Group is 60% Source: FEVE

© VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach | Slide Batch and Cullet Preheating  Goal: Waste heat from flue gases to preheat raw materials and cullet  Flexibility regarding cullet ratios (15 – 90% in trials)  Benefits: Preheater works with batch/cullet ratio of only 14%  A full-scale preheater will result in up to 15% energy savings Energy input 100% Wall losses 22% Energy in flue gas 30% Energy in glass 48% Scource: Horn Source: Zippe

© VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach | Slide Lightweight Technology Source: Emhart Glass  Goal: Weight reductions  Benefits:  raw material savings  energy savings  CO 2 reduction  smaller carbon footprint

© VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach | Slide Weight Reduction of Wine & Beer Bottles 100cl Bordeaux 75cl Bordeaux –16% to 420g–13% to 350g 33cl Beer –13% to 165g 33cl Beer –10% to 185g

© VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach | Slide Hardglass – Goals and Process De-palletizer Bottle Spacer Lehr Hard Glass Machine Cooling Conveyors Cold End Coating Stacker Hard Glass Inspection FlexInspect  Goal – to produce a more robust and/or a lighter bottle  Hardglass – a process to thermally strengthen glass containers  Post process – bottles are heated to 615°C – 650°C  Bottles are lifted from the lehr belt and placed into cooling shrouds  Air enters the shrouds to cool the external surface and air enters through a tube to cool the internal surface  Glass surface compression stress is generated inside and outside  Tensile stress is generated within the glass

© VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach | Slide Hardglass Process

© VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach | Slide What Does It All Mean?  Improvement of mechanical and thermal properties of glass containers  Typical test results  31% increase in average internal pressure resistance  35% increase in average impact strength  significant improvement  in line simulation  in drop test  in vertical load  in thermal shock 200ml 130gm

© VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach | Slide Drop Test

© VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach | Slide Drop Test Results – Long Neck Beer Bottle

© VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach | Slide Potential for Weight Reduction

© VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach | Slide Benefits for End Consumers and Bottlers  More robust packaging glass  Fewer filling line breakages expected  Possibilities for optimizing packaging, e.g. no cardboard separators  Possibilities for reducing weight of  returnable  non-returnable bottles  Perhaps non-returnable bottles could be used as returnable bottles (?)  Smaller carbon footprint through weight reduction  Leveraging drop test results – use of packaging glass in stadiums, vending machines, bars and restaurants, homes ….

© VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach | Slide Realization and Commercialization  Market launch as joint project between &  Installation of most flexible Hardglass post process  48 bottle-per-minute line to be installed at Pöchlarn, Austria -2.0 million/month  Ware range -100 to 1,000ml -50 to 95mm diameter to 320mm height under finish  Production start early 2013  Strong interest from Vetropack’s key accounts  2013 & Design and build higher-capacity version (≥ 250 bpm) for in-process production (after forming machine)

© VETROPACK Vetropack Glass Packaging and Sustainability - Global Approach | Slide Summary  Glass Packaging is inert, gas-tight, and ensures taste preservation  It is environmentally friendly with 100% unlimited recyclability  Packaging glass industry has a global sustainability approach  Sustainability covers economical, social and ecological aspects  Use of cullet saves energy and reduces CO 2 emissions  Batch and cullet preheating improves energy efficiency for melting  Lightweight technology helps to conserve raw materials and energy  Hardglass is an innovative approach to produce a more robust and lighter glass packaging and improve its carbon footprint  Container glass is the sustainable packaging material