The Association of Postconsumer Plastic Recyclers The Voice of Plastics Recycling

1. The Association of Postconsumer Plastic Recyclers The Voice of Plastics Recycling

2. APR THE ASSOCIATION OF POST CONSUMER PLASTIC RECYCLERS SERDC Annual Meeting Memphis, TN October 27, 2011

3. APR 95% of Postconsumer Plastic Reclamation capacity in North America

4. APR Programs • Market Development, • Technical Programs • Rigids Plastic Recycling Program • Education • Communication • Regulatory/Advocacy

5. Industry Key Issues • Key issues: • Supply • Export Market • Contamination • Degradables and Bio-resins • Resin Identification Code • Labelling

6. Communications • Communicate to key audiences • Blocking and Tackling • Local Recycling Officials • General Public • Elected Officials • Website/KidsRecycling Zone.com • Webinars • Industry Information Clearinghouse • Plastics Recycling Conference

7. Key messages • Without APR there is no Plastics Recycling • Plastics are not sustainable w/o recycling

8. Legislative/Regulatory Activity • California • KT, NY, MA, ME, VT, IA • ASTM/SPI Resin Identification Code • Wal-Mart, Canada, et al

9. Technical Activities • Design for Recycling Guidelines • PET Critical Guidance Document • HDPE Critical Guidance Document • Model Bale Specifications • Color Measurement Projects

10. Technical Programs/Issues • Champions For Change • Shrink Sleeves • Bleeding Labels • Labelling • RIC Code • ‘Compatible With’ • Contamination

11. Rigids Recycling Program Nationwide Bale Audit Bale Specificatons Published Recycled Resins Fit for Use Survey Grocery Store Project

12. Rigids Recycling Program • Some specific resins collected- PS,PP,HDPE,tubs and lids • Mixed rigid plastic materials collected haphazardly with loosely defined or no specifications • Limited US and Canadian reclamation capacity • Most sold export

13. 2010 Recycling Rate ReportHDPE The total pounds of plastic bottles recycled reached a record high 2,579 million pounds. •  The total plastic bottle recycling rate was 28.8%, up from 27.8% in 2010.. •  The annual increase in pounds of plastic bottles recycled was 5.0%. •  The 20 year compounded annual growth rate for plastic bottle recycling was 9.2%.

14. 2010 Recycling Rate ReportPET • The amount of post consumer PET bottles collected for recycling and sold in the United States in 2010 was 1,557.2 million pounds. • 775.9 - Purchased by U.S. Reclaimers • 719.6 - Purchased by Export Markets • 61.7 - PET bottle component of mixed bales exported • This represents a 113 MMlb increase in the amount of bottles collected, resulting in an increase in the overall PET bottle recycling rate to 29.1%.

15. 2010 Recycling Rate Report HDPE bottles collected rose by 2.5 million pounds to 984.1 million pounds. • The HDPE bottle recycling rate rose to 29.9% in 2010 from 29.2% in 2009 •  Exports of United States-collected HDPE bottle material fell to 197 million pounds, 20.0% •  Imports of postconsumer HDPE to the United States decreased by 38% to 24.8 million pounds

16. 2010 Recycling Rate Report Polypropylene bottle recycling totaled 35.4 million pounds, an increase of 31% over 2009 • 67% of the total processed domestically as deliberate PP material • As opposed to mixed material flake combined with HDPE

17. RPET Issues • Bottle growth slowing • Bottle collection growing • Curbside Volumes decreasing • Bale supplies tight • More conversion demand than supply • End use demand remains strong • New Investments Announced

18. RPET Applications • Carpet • Fiber • Strapping • Garments • Fleece • Packaging • Automotive • Anything virgin Pet can do-including bottle-bottle

19. RPET Issues • 2/3rds of recycled PET into products other than bottles. • Must get more bottles collected to have high recycled content in bottles and STILL have material for other uses. • 50+% of collected PET leaves country • Need domestic buyers healthy because export markets come and go

20. R-HDPE • HDPE bottle growth stagnant • HDPE bottle collection growing • More bale demand than supply • More reclamation capacity than supply • More clean flake demand than supply • Market dynamics changing • Need new investments

21. R-HDPE USES

22. PCR operations • No clear public policy on PCR use • Mandate on supply, not demand • Most orders come month to month, no long term contracts • Higher costs for those users augmenting with PCR, i.e., not using as primary feedstock

23. Reclaimer issues • Recycled content • Light weighting / downsizing • Bio resins/Degradables • Labelling • LCA’s to understand/quantify sustainability

24. What is coming Plastics recycling will rely more on technical innovation to sort, clean, process and convert more polymers from a mixed packaging stream to usable post consumer resins. • Investment for innovation will remain difficult to come by without strong market signals

25. Future issues • Not many bottles in the 3-7 category (about 3-5%) • Product Stewardship for all packaging, not just bottles. • Collection Infrastructure • Intermediate Processing Infrastructure • Contracts and Public Education

26. APR • Supply not growing, but markets are • No quick cure-but commitments to purchase give security and help investment • Color Sorted Resin has greatest potential for growth and savings for end markets • Export demand is expected to double every 4 years • Good News is we can all expect to market more post-consumer plastic bottles

27. Finally • SALEXANDER@CMRGROUP4.COM • 202-316-3046 • PLASTICSRECYCLING.ORG • THANK YOU