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Valley Converting

Valley Converting

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Valley Converting

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  1. Valley Converting SWAC Meeting February 16, 2012

  2. History: • Founded by Gino Biasi in 1973. • Based in Toronto, OH. • Started the company with two employees.

  3. Converting Operation: • Valley Converting would purchase rolls and sheets of chipboard from the Toronto Paperboard Mill and convert them into smaller sizes, pasted, tied, scored, and long sheets. • Converting operation grew to over 10 employees working six days a week

  4. Manufacturing Operation: • Toronto Paperboard mill encountered serious corporate problems in the mid 80s and closed in September 1987 • Gino Biasi personally bought the mill in May 1988 • Started making chipboard on #1 Paper Machine by July 1988 and on the #2 Paper Machine in January 1990

  5. Manufacturing Operation: • Due to economic conditions we shutdown our #2 Paper Machine in November 2000 • We currently manufacture over 84 tons a day and 21,600 tons annually on our #1 Paper Machine • Chipboard is made up of 100% recycled fiber

  6. The Process: • We purchase the majority of our recovered fiber from paper scrap dealers • We also purchase from local business and regional waste programs • Two grants from the Ohio Department of Natural Resources in ’04 and ’07 for a total of $500,000. These grants enabled us the ability to build the Recycling Center and purchase the necessary cleaning equipment for the recovered fiber.

  7. Recovered Fiber (Scrap): • We purchase Old Corrugated Containers (OCC), Newsprint, Mix, and Boxboard Cuttings from Brokers, County Recycling Programs, Local Businesses, and the General Public • The makeup of our chipboard: • OCC - 15% • News - 15 % • Mix - 20% • Boxboard - 50% • Scrap comes generally from Ohio, West Virginia, and Pennsylvania and within a 200 mile radius of our plant. Freight limits how far out we can go out and get scrap.

  8. Recovered Fiber (Scrap): • In 2011, we purchased 21,700 tons of scrap • Scrap Brokers - 16,700 tons • County Recycling Programs - 2,300 tons (Jefferson/Belmont - 1,700 tons) • Local Businesses - 1,100 tons • Daily Scrap Purchases - 1,600 tons • Cost of scrap: • 2010 - $ 89/ton ($1,730,000) • 2011 - $125/ton ($2,700,000)

  9. Challenges: • Manufacturing and converting chipboard is a capital intensive industry  • Our four biggest expenses are the following: • Scrap Paper • Wage / Health Benefits • Electric • Natural Gas  • Chipboard market is maturing and not a lot of new innovations that require use of chipboard • Manufacturing quality chipboard in the most cost-effective manner and increasing this production on a yearly basis

  10. Questions? Mike Biasi (800) 255 -0799 or (740) 537-2152 mike@valleyconverting.com