2. Recycling Report: The truth about Clamshell and Blister Recycling in America Chandler Slavin Sustainability Coordinator Dordan Manufacturing Co. Inc.

3. 3 © 2010 Dordan Manufacturing, Inc. Dordan Manufacturing Co. Inc. Midwestern based, national manufacturer of custom designed thermoformed packaging solutions since 1962. 3 rd generation family owned and operated. Specializes in custom clamshells, blisters, trays and components for the consumer goods and electronics industries.

4. 4 © 2010 Dordan Manufacturing, Inc. Today’s Presentation Introduction: What is “recyclable” and why Part 1: The economics of recycling packaging in America Part 2: The state of blister/clamshell recycling in America Conclusion: Progress being made in recycling thermoforms

5. 5 © 2010 Dordan Manufacturing, Inc. The Discovery [If the] “Substantial majority” of consumers/communities have access to recycling facilities — [Then the] marketer can make an unqualified recyclable claim.

6. 6 © 2010 Dordan Manufacturing, Inc. Dordan CEO’s Inquiry: If we manufacture our thermoforms out of PCR PET bottles, then why can’t we recycle them with PET bottles?

7. 7 © 2010 Dordan Manufacturing, Inc. What types of packaging is recycled in America?

8. 8 © 2010 Dordan Manufacturing, Inc. http://www.epa.gov/osw/nonhaz/municipal/pubs/msw2008data.pd f

9. 9 © 2010 Dordan Manufacturing, Inc. Why are certain types of packages recycled, while others are not?

10. 10 © 2010 Dordan Manufacturing, Inc. Part 1: The Economics of Recycling in America

11. 11 © 2010 Dordan Manufacturing, Inc. Economics of Recycling Recycling requires many steps, with costs associated with each: – Collect post-consumer – Transport – Sort – Reprocess – and, Remanufacture

12. 12 © 2010 Dordan Manufacturing, Inc. Example: PET bottles Made from quality resin Established infrastructure leads to “easy” recycling Established post consumer market ensures a high value Allows it to compete with virgin resin

13. 13 © 2010 Dordan Manufacturing, Inc. Chicken and Egg Demand for post-consumer material drives collection (supply) Collection will not occur unless a market (demand) exists

14. 14 © 2010 Dordan Manufacturing, Inc. Too expensive to recycle? Costs associated with collection, sorting, transportation and reprocessing can be very high These costs can exceed the cost of virgin resin – Result is a material that is “too expensive to recycle”

15. 15 © 2010 Dordan Manufacturing, Inc. Example: EPS 98% air; 2 % resin It’s bulky and lightweight – Transportation costs are very high without the aid of a densifier – Densifiers are costly infrastructure investments – This makes it economically unsustainable to recycle EPS in most markets

16. 16 © 2010 Dordan Manufacturing, Inc. “Material/packaging type?” Material (or resin) type is only one part of the equation Many times, the packaging type or application plays an important role as well

17. 17 © 2010 Dordan Manufacturing, Inc.

18. 18 © 2010 Dordan Manufacturing, Inc. What does all this mean for the state of recycling thermoform packaging, like clamshells and blisters, in America?

19. 19 © 2010 Dordan Manufacturing, Inc. Part 2: The State of Blister/Clamshell Recycling in America

20. 20 © 2010 Dordan Manufacturing, Inc. Section 1: Supply and Demand Considerations for Recycling Thermoforms

21. 21 © 2010 Dordan Manufacturing, Inc. Supply Considerations There has to be enough “enough” is defined by the requirements of the buyer/end market “enough” is commonly referred to as “Critical Mass” in the WM industry

22. 22 © 2010 Dordan Manufacturing, Inc. Example: PET Bottles According to NAPCOR, the total number of pounds of PET bottles and jars available in the U.S. for recycling in 2008 was 5.366 billion. This quantity far exceeds the critical mass necessary to economically justify the recycling of PET bottles in the context of material generation.

23. PET Bottle vs. Thermoform Generation There are not as many clamshells of a single resin manufactured as there are of PET bottles This makes the collection of an adequate supply of this material/package type difficult Its recycling has been historically economically ambiguous 23 © 2010 Dordan Manufacturing, Inc.

24. 24 © 2010 Dordan Manufacturing, Inc. Do thermoforms have Critical Mass? There has to be about 400 million lbs of a particular plastic generated for the recycling to be profitable (Plasticstoday.com). Fortunately, 1.4 billion lbs of PET thermoforms were produced in North America in 2008 (Ibid).

25. 25 © 2010 Dordan Manufacturing, Inc. Thermoforms do have Critical Mass Recycling of PET thermoforms can be an economically sustainable process Transition from PVC to PET will render more PC PET available for collecting and recycling

26. 26 © 2010 Dordan Manufacturing, Inc. Demand Considerations Demand for PC PET material in North America exceeds the supply 3:1 If PET thermoforms were integrated into the PET recovery stream, then more RPET would be available to meet the growing demand

27. 27 © 2010 Dordan Manufacturing, Inc. Section 2: Sortation Considerations for Recycling Thermoforms

28. 28 © 2010 Dordan Manufacturing, Inc. Sortation is… The process by which recyclable materials are sorted from those destined for landfill This often occurs at the MRF

29. Sorting Technologies There are two sortation systems employed at MRFs: – Visual/manual sortation : Workers on “The Line” manually pull the “recyclables” from those destined for landfill. – Automatic sortation: Using technology to detect or analyze one or more properties of the materials passing through and automatically sort these materials into several categories, either by resin type, color, or both. – Infrared, optical scanners, magnets, etc… 29 © 2010 Dordan Manufacturing, Inc.

30. 30 © 2010 Dordan Manufacturing, Inc. Visual Sortation and Thermoforms? Bottles Easy to visually identify on “The Line” at a MRF by their thin necks and screw tops. Thermoforms Heterogeneous in size, shape, and material. Difficult to visually identify by material type as the move down “The Line” at a MRF.

31. 31 © 2010 Dordan Manufacturing, Inc. SPI ID Code Most plastic packaging is labeled with a SPI ID #, pictured below The recent influx of new resins, bio-based resins, barrier-resins and others have made the SPI ID code confusing Manual sortation does not provide adequate time to inspect the small symbols

32. 32 © 2010 Dordan Manufacturing, Inc. Example: SPI ID #1 Packages made from PET are labeled with the SPI ID #1 However, packages labeled with #1 may also be comprised of PETG, – the –G lowers the melting point of the PET polymer, disrupting the established reprocessing of PET recyclate. Other examples include packages made from CPET and multi-layer PET, – these have the potential to ruin the PET recyclate for remanufacturing.

33. 33 © 2010 Dordan Manufacturing, Inc. In Short… The more time-intensive the process is for the manual sorters to visually identify the recyclable materials from those destined for landfill, the higher the reprocessing costs; therefore, the more expensive the recyclate and the less competitive it will be with virgin material/product production.

34. 34 © 2010 Dordan Manufacturing, Inc. Automatic Sortation and Thermoforms? Many MRFs do not have automatic sortation systems because they are too expensive. If the investment has not been made, the MRFs’ ability to sort thermoforms by material type from those still with no end markets will be time-intensive, resulting in higher reprocessing costs.

35. 35 © 2010 Dordan Manufacturing, Inc. Sorting Technologies, the Economics of Recycling, and Supply and Demand Sortation technologies employed by the MRF can greatly impact the economics of recycling a particular material. A MRF will not make an investment in automated systems until the supply and demand necessary to sustain the process of recycling itself is guaranteed.

36. 36 © 2010 Dordan Manufacturing, Inc. Section 3: Specs and Baling Considerations for Recycling Thermoforms

37. 37 © 2010 Dordan Manufacturing, Inc. Specs are… The documented qualifications a buyer/end market outlines to the supplier of PC material upon procurement. This depends on the end use of the recyclate: – If the buyer/end market is a bottler, the recyclate has to meet one set of specs; – if the recyclate is intended for thermoformed packaging, it has to conform to another; – and, if the recyclate is used in non-packaging applications like carpet, imitation timber, etc., it has to demonstrate compliance with another set of specs.

38. 38 © 2010 Dordan Manufacturing, Inc. Closed Loop vs. Down-cycling By remanufacturing bottles from bottles or thermoforms from thermoforms, the value of the PC material is not assumingly diminished after reprocessing. If down-cycled, the recyclate may be diminished in value because it does not have to conform to such stringent specs.

39. 39 © 2010 Dordan Manufacturing, Inc. End-Use Categories for PET and Associated Market Value Packaging applications, like bottles Sheet and film applications, including, thermoforming applications Strapping Fiber applications, like carpets, fabrics, and fiberfill, etc.

40. 40 © 2010 Dordan Manufacturing, Inc. Specs = Value of Recyclate Generally, the more stringent the specs: – the higher value the recyclate due to its application to many end markets – the lower the concentration of contaminates – the more likely the end market attempts to “close the loop”

41. 41 © 2010 Dordan Manufacturing, Inc. Specs for Thermoform Bales Needed Specs for thermoform bales are needed if we want to recycle them Without a buyer/end market and therefore specs, these material/packaging types will not be collected and sold for reprocessing/remanufacturing

42. “Bales” are… How a material is collected and prepared for recycling at the MRF 42 © 2010 Dordan Manufacturing, Inc.

43. How do you bale thermoforms? Due to their differing densities, geometries, and often times materials, it is difficult to come up with a uniform bale for market, especially when no specs for thermoform bales exist, though this is currently being investigated. 43 © 2010 Dordan Manufacturing, Inc.

44. 44 © 2010 Dordan Manufacturing, Inc. In Summary… We need to create specs for recycling thermoforms – including specs for baling However, no one will create specs for thermoform- only bales or PET thermoform & bottle bales if there is no buyer/end market – there will not be a buyer/end market if none of this material is collected and sorted.

45. 45 © 2010 Dordan Manufacturing, Inc. Part 4: Contamination Considerations for Recycling Thermoforms

46. 46 © 2010 Dordan Manufacturing, Inc. Approach to Recycling Thermoforms? There are three popular approaches to recycling thermoforms: – Recycle PET thermoforms with PET bottles to remanufacture into RPET bottles and/or thermoforms; – recycle all PET thermoforms together to remanufacture into RPET thermoforms; – recycle all mixed-resin thermoforms together to remanufacture into various down-cycled applications, like imitation timber.

47. 47 © 2010 Dordan Manufacturing, Inc. Isolate PET Bales for Highest PC Value Bales of a single resin, like PET, enjoy more PC value than mixed resin bales, described as a low-grade plastic mix. By recycling PET thermoforms with PET bottles OR recycling all PET thermoforms together, the resultant recycled material would enjoy a high PC value applicable to a variety of end markets.

48. 48 © 2010 Dordan Manufacturing, Inc. Approach taken informs what is a “Contaminant” If either approach is taken (PET bottles+PET thermoforms OR PET thermoforms only), then contamination issues need to be addressed. If the third approach is taken (recycle all mixed-resin thermoforms together in a low- grade plastic mix), these considerations may not apply; this is again contingent upon the specs of the buyer/end market.

49. 49 © 2010 Dordan Manufacturing, Inc. Known Contaminates to PET Recycling Barrier Resins(EVOH) Closures Labels Safety seals Container residue i.e. chemicals or food Look-a-likes like PVC, CPET, PETG, etc. Modified PET resins Multi-layer PET containers Colored PET

50. 50 © 2010 Dordan Manufacturing, Inc. Where do we go from here?

51. The recycling of thermoforms depends on the ability to… Collect Transport Sort Bale Reprocess Remanufacture Into new material/products in an economically competitive way with virgin material/product production. 51 © 2010 Dordan Manufacturing, Inc.

52. Luckily, we are not alone! 52 © 2010 Dordan Manufacturing, Inc.

53. Progress in Recycling Thermoforms In 2009, NAPCOR facilitated the shipment of almost one million pounds of PET thermoforms to various reclaimers and end markets to understand the technical barriers keeping them from being recycled. 53 © 2010 Dordan Manufacturing, Inc.

54. NAPCOR Results Certain adhesives on thermoform labels compromised the clarity of the recyclate for reprocessing. PET packages coming from South America had the tendency to turn the recyclate fluorescent. It is technically easier to recycle PET thermoforms with PET thermoforms then recycle PET thermoforms with PET bottles. 54 © 2010 Dordan Manufacturing, Inc.

55. NAPCOR concludes… “As a result of this work, it is anticipated that there will be various market options for this material in the near future…. NAPCOR is committed to working on this issue until PET thermoforms can be labeled “recyclable” in the truest sense of the word.” 55 © 2010 Dordan Manufacturing, Inc.

56. What Dordan is doing Have been invited to tour a Fortune 500 company on the east coast that claims to recycle and reprocess post consumer curb-side collected PET thermoforms with PET bottles. Continue to work with Woodstock High Schools to educate students about the importance of recycling. Continue to “put it all out there” via blog, social network sites, website, trade magazines, industry events, etc. 56 © 2010 Dordan Manufacturing, Inc.

57. Thank you! cslavin@dordan.com (815) 334-0087 www.recyclablepackaging.org Special thanks to WM, NAPCOR, APR, ISRI, CalRecycle, SPC, and my sustainability and packaging friends around the globe! 57 © 2010 Dordan Manufacturing, Inc.