1. Challenges of Glass Recycling in North America
Curt Bucey, Executive VP
2015 Georgia Recycling
August 2015 es

2. Agenda History Market Update Glass Quality Overtime
Impacts on Dirtier Supply
Specifications
Alternative shipping methods

3. Who We Are
Established in 1896, SMI is the largest glass recycler in the U.S.
Operates 39 glass recycling plants across North America
Recycling over 3.0 million inbound tons of glass each year
A top ten plastics processor
© Copyright Strategic Materials, Inc.

4. What We Do – Products Using Recycled Glass
© Copyright Strategic Materials, Inc.

5. less than 50 PPM of ceramic
SMI Final Product
SMI takes in raw feedstock that has up to
50% organics &
30,000 PPM ceramic
NGR and cleans final product to
.15% -.25% organics &
less than 50 PPM of ceramic
to meet customer specifications.
Color from mixed to 90-95% pure
We have a 99.52% nationwide acceptance rate from our customers

6. GA Market Update
GA one of the largest states using consuming recycled glass (approx. 200,000 TPY)
Key Markets for GA are into Fiberglass & Container industry. GA fortunate to have both markets.
Both markets desire to increase cullet % but as % used increases, quality must also improve.
Room for GA supply growth as 1/3 of glass consumed in GA is Imported
SMI

7. Uses 25-% of GA recycled glass
Container Review
Uses 25-% of GA recycled glass
Demand is off YOY slightly
Industry currently at 30% an they want to increase to 50-60% min
Millennials favor wine and spirits over beer which is 50% of container market
Why Use Cullet
20% less air
50% less water pollution
Saves approx. 30% energy
Speeds up production
Closed Loop …
Glass Containers can be used over and over again endlessly.
Can be used at 95% recycled content. Lots of room for growth.

8. Uses 75+% of GA recycled glass
Fiberglass Review
Uses 75+% of GA recycled glass
Tied to Housing starts. Still recovering from 2009 housing collapse (2,000,000 starts to 500,000).
During collapse volumes in GA were relatively stable. Industry decided to support GA recycling community boosted recycled content levels rather than shut off receipts.
Why Use Cullet
20% less air
50% less water pollution
Saves approx. 30% energy
Not Closed Loop but Saves energy continously
One six pack produces enough fiberglass insulation to fill a standard wall cavity.
Boosting insulation by R-30 saves approx. $600 per year every year

9. Challenges… Before Today Evolving ton? Blender 50% at mrf unprofitable
Percentage of 3mix to straight color continues to increase.
Quality of inbound single-stream supply has deteriorated rapidly.
Costs have risen steadily to handle the lower quality single-stream glass.

10. 3-MIX Quantity is increasing while Quality is Deteriorating
3-MIX Quality Trends
3-MIX Quantity is increasing while Quality is Deteriorating

11. Tons and % of NGR & Fines Increasing as well
Increased Disposal of Residuals Over Time
(Fines & NGR)
Tons and % of NGR & Fines Increasing as well

12. Dirtier supply is having a severe economic impact
Economic Impacts of Dirtier Supply
Dirtier supply is having a severe economic impact

13. 3-MIX Single Stream Inbound Inspection
Quality Reports (Tools)
Inspection Table (Tool)
Created incoming inspection program 2012 and implemented beta testing
Rolled out internal testing in 2013 and started to share data with suppliers
Tied pricing to incoming quality in 2014
Started to install testing tables at suppliers who want to test prior to shipping to SMI
SMI Developed a “Tool” to Measure Quality for Single Stream Supply

14. 3-MIX Single Stream Matrix (market specific)
Trying to be open and transparent on pricing.
Key drivers for our pricing is
Non-Glass Residue % and local landfill rates
Undersize %, plant capabilities and local disposal options
Allows MRF’s to evaluate economic value to improving / deteriorating quality
Undersize
8.0%
9.0%
10.0%
11.0%
12.0%
13.0%
14.0%
15.0%
16.0%
17.0%
18.0%
19.0%
Non-Glass Residue
6.0%
$ (2.64)
$ (2.74)
$ (2.84)
$ (2.94)
$ (3.04)
$ (3.14)
$ (3.24)
$ (3.34)
$ (3.44)
$ (3.54)
$ (3.64)
$ (3.74)
7.0%
$ (4.08)
$ (4.18)
$ (4.28)
$ (4.38)
$ (4.48)
$ (4.58)
$ (4.68)
$ (4.78)
$ (4.88)
$ (4.98)
$ (5.08)
$ (5.18)
$ (5.52)
$ (5.62)
$ (5.72)
$ (5.82)
$ (5.92)
$ (6.02)
$ (6.12)
$ (6.22)
$ (6.32)
$ (6.42)
$ (6.52)
$ (6.62)
$ (6.96)
$ (7.06)
$ (7.16)
$ (7.26)
$ (7.36)
$ (7.46)
$ (7.56)
$ (7.66)
$ (7.76)
$ (7.86)
$ (7.96)
$ (8.06)
$ (8.40)
$ (8.50)
$ (8.60)
$ (8.70)
$ (8.80)
$ (8.90)
$ (9.00)
$ (9.10)
$ (9.20)
$ (9.30)
$ (9.40)
$ (9.50)
$ (9.12)
$ (9.22)
$ (9.32)
$ (9.42)
$ (9.52)
$ (9.62)
$ (9.72)
$ (9.82)
$ (9.92)
$ (10.02)
$ (10.12)
$ (10.22)
$ (9.84)
$ (9.94)
$ (10.04)
$ (10.14)
$ (10.24)
$ (10.34)
$ (10.44)
$ (10.54)
$ (10.64)
$ (10.74)
$ (10.84)
$ (10.94)
$ (10.56)
$ (10.66)
$ (10.76)
$ (10.86)
$ (10.96)
$ (11.06)
$ (11.16)
$ (11.26)
$ (11.36)
$ (11.46)
$ (11.56)
$ (11.66)
$ (11.28)
$ (11.38)
$ (11.48)
$ (11.58)
$ (11.68)
$ (11.78)
$ (11.88)
$ (11.98)
$ (12.08)
$ (12.18)
$ (12.28)
$ (12.38)
$ (12.00)
$ (12.10)
$ (12.20)
$ (12.30)
$ (12.40)
$ (12.50)
$ (12.60)
$ (12.70)
$ (12.80)
$ (12.90)
$ (13.00)
$ (13.10)
$ (13.08)
$ (13.18)
$ (13.28)
$ (13.38)
$ (13.48)
$ (13.58)
$ (13.68)
$ (13.78)
$ (13.88)
$ (13.98)
$ (14.08)
$ (14.18)
$ (14.16)
$ (14.26)
$ (14.36)
$ (14.46)
$ (14.56)
$ (14.66)
$ (14.76)
$ (14.86)
$ (14.96)
$ (15.06)
$ (15.16)
$ (15.26)
$ (15.24)
$ (15.34)
$ (15.44)
$ (15.54)
$ (15.64)
$ (15.74)
$ (15.84)
$ (15.94)
$ (16.04)
$ (16.14)
$ (16.24)
$ (16.34)
$ (16.32)
$ (16.42)
$ (16.52)
$ (16.62)
$ (16.72)
$ (16.82)
$ (16.92)
$ (17.02)
$ (17.12)
$ (17.22)
$ (17.32)
$ (17.42)
20.0%
$ (17.40)
$ (17.50)
$ (17.60)
$ (17.70)
$ (17.80)
$ (17.90)
$ (18.00)
$ (18.10)
$ (18.20)
$ (18.30)
$ (18.40)
$ (18.50)
Sample
Creating a roadmap on economic value

15. Over 2 years of Quality Inspection Data
3-Mix Single Stream – NGR % in Tot Supply
Over 2 years of Quality Inspection Data

16. Over 2 years of Quality Inspection Data
3-Mix Single Stream–Undersize % in Tot Supply
Over 2 years of Quality Inspection Data

17. All Incoming glass is not created equal
3-MIX Single Stream Specification
3-MIX Single Steam Specification
Criteria
Description
Examples
Target
NGR
Non-Glass-Residual found in municipal recycling program
Paper, Plastic, Aluminum, steel
10% Maximum
U/S
Undersize Glass particles < 3/8” (or < 1/8” *)
Mixed color glass particles
12% Maximum
Other Criteria
Ceramics
Broken bits of household ceramic
Dinner plates, mugs, cups
.01% Maximum
Color
Flint, Amber, Green(s) & other
Food containers, beer bottles, wine/ soda bottles
See above table in Definition
Moisture
Excessive water mixed with glass**
Rain, snow, ice
5% Maximum
Excluded Waste
Other, possibly hazardous waste
CRT, radioactive, medical waste, heavy metals, etc.
0% (Zero) see ‘Excluded Waste’ Definition
Publishing a new nationwide target specification for 3mix which
Sets an achievable target for Mrf operators
Should help Cities & Mrf operators to establish target specification and economic formulas
All Incoming glass is not created equal

18. Alternative Collections Methods
What else can be done
Audit Mrf’s for processing capabilities
Mrf’s should re-evaluate their glass cleaning system and make improvements to decrease NGR levels and maximize profits…. SMI is willing to help any Mrf with processing suggestions.
Requires commitment to processing and to line patrolling..
Alternative Collections Methods
KC drop-off collection has yielded 20,000 tons with 50 miles radius and 20,000 tons with extended circles… how? 50
100
200
300
$10/ton
$20/ton
$30/ton
Roll off collection only economical with 50 miles of plant unless coupled with bulk shipments utilizing local drop-off collection / concrete pads. City / Counties avoid landfill cost on drop-off center glass Gaylord collection and drop-off center glass can reach a long way and still be positive to City/County
Other ideas / suggestions ?????