Challenges for Non-Bottle Rigid Container Molders to Comply With PCR Legislation May 2000

1. Challenges forNon-Bottle Rigid Container Molders to Comply With PCR LegislationMay 2000

2. Topics • Rigid plastic container overview • Processing • Market overview • Recycling issues • Plastic container resin and molding technology • Lightweighting • Industry trends • California regulations

3. Packaging plastic options • Blow molding • Bottle formed with small opening • Vacuum thermoforming • Sheet of plastic melted on a steel mold • Injection molding • Melt resin pellets • Forced into a steel mold • Cooled to form part

4. North America -- Total Plastics Consumption Non-Bottle Rigid Containers Account for only 3% of the total plastics stream

5. Plastics Collection Programs Source: RW Beck 1Actual is higher due to non-responding communities.

6. Non-Bottle Rigid Containers - Resins Used for Manufacture Source: RW Beck

7. Recycling Issues • Variety of resins used in rigid packaging • Melt flow index within resin families High Density Polyethylene PackageMelt FlowFlows Like Milk jugs 1 melt Honey 1 gallon industrial 20 melt Syrup Butter tub 50 melt Salad dressing Lids 100 melt Water

8. Non-Bottle Rigid Containers - Barriers to Recycling • Relatively small size of waste stream • Many polymer types - different polymer performance attributes (PP; HDPE; LLDPE; PS; PET; PVC) • only PP, HDPE and LLDPE recyclable as co-mingled - all polyolefins • Sorting technology not yet developed • Even within single polymer streams - many polymer types --- (eg. different melt flow resins)

9. Injection molders use highly-engineered resins to attain thinwalling (lightweighting) • High melt index resins > 40-100 melts • PCR 18 to 1 melt index • Must thicken part to use PCR • Increased energy cost • More plastic in landfill • Consumers will have increased costs

10. 2000 container vs. 1985 container • 46% less plastic • 200 million containers used annually in U.S. • 32 million lbs. of resin • 15 million lbs of resin saved • 1,500 truckloads of plastic not going to the waste stream annually

11. Polypropylene Dairy ContainersCase Study Example Wax Paper (1970’s) Polypropylene (PP) (Mid-1980’s) PP - 2nd generation technology 1990’s 33% Reduction PP - 3rd generation technology 2000’s (specialized resins)

12. Technology Trends - Rigid Plastic Containers • Resin and polymer processing technology advancing • Lightweight • Increase strength of containers • Higher production rates and lower unit energy consumption • More customized and tailored resins --- to minimize resin consumption, increase production rates and reduce costs Major Environmental Benefits Resource Conservation - lighter weight packaging/less raw materials usage Less Energy/Emissions in fabrication & shipping

13. Key Environmental Concerns Heavier Gauge Containers Recycle-Content Resin Trend Resin Technology Trend Increased Light-weighting

14. Compliance with current SB135 • Lightweight containers • Limited PCR usage

15. California-Proposed Regulations/Issues • Recycle-Content Resins • Source Reduction • No FDA Food Grade resin supply available in higher technology resins • Traceability of PCR resins • Lower melt flow resins will tend to drive processors towards heavier containers • Cost reduction is already providing adequate incentives • Would penalize companies who source-reduced early -- lower base year container weight

16. The plastic packaging industry and environmental groups have opportunities to reduce plastic waste

17. Find and grow markets that can produce products using PCR • Use R&D departments of resin companies, mold makers and machine manufacturers to further develop engineered resins to allow lighter part weights • Today the plastic packaging industry gives the consumers their preferred packaging, a reusable, recyclable, resealable, lightweight container. The future can be even brighter with the use of technology tofurther reduce plastic waste.