New Developments in the Carolinas Recycling Economy
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1 New Developments in the Carolinas Recycling Economy March 28, 2017 Will Newsome Manager of Trade Sales & Field Procurement
2 Sonoco Products Is a Global Packaging Ø Founded 1899 in Hartsville, S.C. Ø Diversified provider of consumer, protective & industrial packaging and services Ø $5 billion in sales Ø 20,000 employees Ø 300 operations in 35 countries Ø Products sold in 85 nations
3 Segments CONFIDENTIAL
4 Segments CONFIDENTIAL
5 Segments CONFIDENTIAL
6 Segments CONFIDENTIAL
7 Sonoco North America Integrated Business Integrated Supply Chain Model Recycling Paper 22 Plants 4 Material Recovery 13 Paper Mills with Facili8es (MRF) Collect 3 million tons 21 paper machines 1.3 million tons of Paperboard 3 Adhesive loca8ons and Forest Products 7 Conver8ng 75 Industrial and Consumer conver8ng opera8ons Consume internally supplied paperboard and adhesives
8 8
9 Keeping up with change. Ø The dynamics of recycling are constantly changing. Ø Market demand (extreme price highs and lows over the past several years) Ø Residential Single Stream Compositions Ø Inbound quality Ø Route Density Ø Investments are necessary in keeping up with these changes. Ø Having the proper equipment in place allows us to become more efficient, increases our overall capacity, provides our customers with a quality product, and allows us to be more competitive in the market place. Ø Sonoco Recycling is committed to the industry and will continue to make investments where needed for growth. 9
10 Onslow MRF Jacksonville, NC Ø Began operations in September 2012 to serve Onslow Co and the surrounding areas. Ø 2015 Investments: Ø Added Covered Tipping Building Protects loose commingled material from weather Ø Metering Bin Optimized sorting capabilities Ø Optical Sorters Increased recovery of plastics by 30% 10
11 NEW TIPPING BUILDING January
12 NEW METERING DRUM /IN FEED June
13 OPTICAL SORTER October
14 New Hanover Co Wilmington, NC Ø Sonoco Recycling jointly with NHC invested in building renovations and equipment. Ø Hub-Spoke Model with equipment to sort 80% of Commingle Recycling Ø Additional material sent to Jacksonville for further sorting Ø Capability to sort annually over 30,000 tons/year of commingle recyclables Ø Added 20 new jobs to the area Ø Positioned to grow with the Wilmington area over the next 10 years Ø Worked closely with other local municipalities (City of Wilmington and surrounding coastal communities) to make project a success Ø Began processing in March
15 New Hanover County Facility (Wilmington NC) 15
16 New Hanover County Facility (Wilmington NC) 16
17 New Hanover County Facility (Wilmington NC) 17
18 New Hanover County Facility (Wilmington NC) 18
19 New Hanover County Facility (Wilmington NC) 19
20 Raleigh Added a new CP Manufacturing glass breaker screen deck to the existing 2 screen decks and relocated all of these components to the front-end of the MRF system. Ø Increased glass recovery by 9% Ø Reduces wear and tear on equipment Ø Improves quality for our customers Added a 3-deck OCC screen Ø Reduces the amount of manual labor needed to recover OCC Ø Provides for a cleaner newspaper and OCC pack for the consuming mill These upgrades serve to improve efficiencies in our Raleigh operation that will allow Sonoco Recycling to increase its overall capacity. 20
21 Raleigh 21
22 Other Investments Sonoco Recycling Ø Columbia - Installed a new baler in November 2016 to increase efficiencies Ø Columbia Replacing a newspaper screen to improve quality Ø Looking to replace a plant baler in North Carolina Ø Installing a new IT system at all plant locations Ø Replacing tractors, trailers, fork trucks, etc Sonoco Paper Mill Hartsville, SC Ø Major upgrade on PM #3 Ø Major upgraded to the stock prep area at URB mill (6 PM s) Ø Improved cleaning system, which now allows us to utilize alternative furnish Sonoco Consumer Packaging Ø Nov Acquired Plastic Packaging, Inc. Hickory, NC Ø Originally founded in 1957 Ø Frozen foods, baked goods, seafood, pet food, health & personal care Ø Mar Acquired Peninsula Packaging Co. 3 West Coast, 1 Wilson, NC Ø Largest consumer of recycled drink bottles in the US Ø Leading manufacturer of thermoformed packaging for fresh fruit & vegetables 22
23 Questions Will Newsome (843)
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