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Valley Converting. SWAC Meeting February 16, 2012. History:. Founded by Gino Biasi in 1973. Based in Toronto, OH. Started the company with two employees. Converting Operation:.

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valley converting

Valley Converting

SWAC Meeting

February 16, 2012

history
History:
  • Founded by Gino Biasi in 1973.
  • Based in Toronto, OH.
  • Started the company with two employees.
converting operation
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
manufacturing operation
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
manufacturing operation1
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
the process
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.
recovered fiber scrap
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.
recovered fiber scrap1
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)
challenges
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
questions
Questions?

Mike Biasi

(800) 255 -0799

or (740) 537-2152

[email protected]

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