Sustainable Plastics Recycling in the Age of Globalization

1. Sustainable Plastics Recycling in the Age of Globalization Michael M. Fisher, PhD Senior Director, Technology American Plastics Council RECCON’05 “Global Electronic Recycling Solutions” November 28-30, 2005 Morgantown, WV Hosted by West Virginia University

2. Outline • Introductory Remarks • Resin Sales and Captive Use • U.S. Plastics Industry Trade Balance • Latest APC Plastics Recycling Statistics • Some Emerging Issues • Globalization and the Plastics Industry • Closing Remarks

3. Some Critical Issues Facing the Global Plastics Industry Today • Cost of energy and feedstocks • E.g., natural gas prices in the U.S. • Increased regulatory oversight • E.g., REACH • Globalization and sustainable development • Internally and externally driven • Plastics as a key enabler • Service vs. manufacturing economy • Innovation • Competition • Recycling

4. Resin Sales and Captive Use

5. Total Global Polymer Demand(154.3 million metric tons/340.2 billion pounds)

6. U.S. Business of Chemistry: Segment Growth (Average Growth 1994/04 vs. 2005/15)

7. North American Thermoplastic Resin Consumption by Market

8. International Trade

9. Data from The Society of the Plastics Industry

10. Global Export of Plastics For 2003, United Nations trade statistics show exports of plastics in primary form to be more than $ 72 billion. Seventy countries reported trade in plastics in 2003. The top exporting countries were the United States, Germany, Belgium, China (Hong Kong SAR), France, Canada, Italy, Singapore, Sweden, and Malaysia. The Unites States is the largest exporting country; the Peoples Republic of China is the largest importer. The value of exports in 2003 is below the levels for the previous three years due to the world-wide economic downturn. Exports for 2000-2002 averaged more than $ 90 billion. Source: ISO TC 61 (Plastics) Business Plan

11. Plastics Recycling American Plastics Council 2004 National Post-Consumer Plastics Recycling Report

12. Growth in Post-Consumer Plastic Bottle Recycling Source: R. W. Beck, Inc.

13. 2004 Plastic Bottle Production and Recycling Composition by Resin Type Source: R. W. Beck, Inc. Other includes PVC, LDPE/LLDPE, and PP; data was not collected for PS in 2004

14. Size Comparison of Domestic Reclaimers of PET and HDPE Bottles

15. Domestics Recycled PET Bottle End Use Source: R. W. Beck, Inc.

16. Domestic Recycled HDPE Bottle End Use Source: R. W. Beck, Inc.

17. PET Bottle Wash Capacity in the U.S. Source: R.W. Beck, Inc. The figures shown above are estimates and should not be used for business planning purposes. Utilized capacity includes PCR quantities processed domestically only. Capacity based on 24 hrs./day and 365 days/year.

18. HDPE Bottle Wash Capacity in the U.S. Source: R.W. Beck, Inc. The figures shown above are estimates and should not be used for business planning purposes. Utilized capacity includes PCR quantities processed domestically only. Capacity based on 24 hrs./day and 365 days/year.

19. Export • 372 million pounds of PET bottles (37.1% of the total recovered for recycling) and 145 million pounds of HDPE bottles (16.0% of the total recovered) were exported for recycling in other countries. • Export markets for post-consumer plastic bottles were again strong for the year. The slight decline from 38.3% in 2003 to 37.1% in 2004 for PET pounds exported may have been due in part to actions taken by the Chinese government to enforce restrictions on the import of post consumer plastic bales.

20. Commercial Collection Programs for Film • More haulers are recognizing the economic benefit (to them and their customers) in film collection combined with cardboard collection since film is worth much more than cardboard. • Haulers are now picking up bagged (with OCC) or baled film in the following counties in CA: • Santa Clara, Santa Cruz, Fresno, Sacramento, LA, Sonoma, Alameda, and Santa Barbara. • There are additional programs throughout the US. In addition to grocers and big retailers such as Wal-Mart, smaller generators are now recovering film through service from haulers who collect clean film with OCC.

21. Polystyrene Recycling 2004 EPS Recycling Rate: 12% Post-consumer recycled: 25M lbs Source: Alliance of Foam Packaging Recyclers

22. Some Emerging Plastics Recycling Issues • Banned and Restricted Substances • RoHSs • Stockholm Convention (POPs) • Declarable Substance Lists • International Standards • Eco-Efficiency and Sustainability • Recycling of plastics from durable goods • Feedstock Recycling • Energy Recovery

23. Conclusions • Free market economy drives recycling in the United States • Product manufacturers use recycled material when it is a less expensive raw material • The limiting factor in recycling plastics is the supply of material from consumers • Technology rises to meet the market demands and results in lower process costs • Plastics recycling will continue to increase • International trade in plastics will grow

24. RECCON ‘05 Globalization and the Plastics Industry “There is an overwhelming case that trade increases economic welfare.” Ben S. Bernanke Recently nominated to head the U.S. Federal Reserve

25. Business of Chemistry Exports, Imports and Trade Balance Imports: $112.3 Exports: $109.3 Trade Balance: -$3.6

26. Share of U.S. Chemical Exports/Imports by Sector2004, Percent Polymers 23/13 Pharmaceuticals 22/32 Bulk Petrochemicals & Intermediates 21/16 Specialties 16/22 Consumer Products 5/5 Inorganics 5/7 Other Petrochemical Derivatives 5/3 Agricultural Chemicals 4/3

27. Total Business of Chemistry 2003 FDIUS: $123.2 billion

28. Total Business of Chemistry 2003 USDIA: $90.3 billion

29. Source of 2003 Global Growth

30. Business of ChemistryLong Term Global Growth Trends

31. Regional Population, Per Capita Plastics Consumption, and Population Growth United States Other Western Europe Italy Japan Canada United Kingdom Mexico (hidden) Germany France Other Asia-Pacific Other East Asia Brazil Africa & Middle East Russia India China Note: Bubble size represents population in 2003

32. Regional Population, Per Capita Plastics Consumption, and Population Growth United States Italy Other Western Europe Japan United Kingdom Canada Germany Other East Asia France Brazil Mexico Africa & Middle East Russia Other Asia-Pacific India China Note: Bubble size represents market size (in resin volume) in 2003

33. Closing Remarks • Plastics are essential to sustainable development • The plastics industry is a leading global industry • Plastics recycling is an emerging industry • Plastics recycling is part of the plastics industry • Plastics recycling will be a global industry • International standards will be essential to support trade • The center of gravity of the global plastics industry is shifting

34. Final Note In considering global product recycling opportunities, life-cycle material and energy flows, domestically and across boarders, become critical to defining sustainability

35. Thank You Mike Fisher mike_fisher@plastics.org