A recycling journey

1. A recycling journey Paul Kinkead Environment Manager, Michelin Tyre PLC Our Corporate objectives How NISP have helped us How it makes good business sense

2. 68 manufacturing locations in the world Michelin manufacturing plants are established worldwide, in 75 manufacturing locations. How is a manufacturing location defined? A manufacturing location corresponds to one (or several) site(s) that manufacture a product or a component entering into the composition of the product delivered to the customer. A manufacturing location corresponds to one (or several) establishment(s) located in a given town or city (or its suburbs) and belonging to one of the Group's Companies. When two or more of the Group's Companies have individual manufacturing locations in the same town or city (or its suburbs), each one is a separate site. The specific manufacturing locations of mechanical engineering or moulds as well as the centers of assemblies are not taken into account. For example, if 3 Michelin plants and 1 Kleber plant are located in the same town, we count 2 manufacturing locations. Don't confuse the following words: manufacturing location (or manufacturing site) translated in French by "site de production"; manufacturing plant (or facility) translated in French by "usine de production".Michelin manufacturing plants are established worldwide, in 75 manufacturing locations. How is a manufacturing location defined? A manufacturing location corresponds to one (or several) site(s) that manufacture a product or a component entering into the composition of the product delivered to the customer. A manufacturing location corresponds to one (or several) establishment(s) located in a given town or city (or its suburbs) and belonging to one of the Group's Companies. When two or more of the Group's Companies have individual manufacturing locations in the same town or city (or its suburbs), each one is a separate site. The specific manufacturing locations of mechanical engineering or moulds as well as the centers of assemblies are not taken into account. For example, if 3 Michelin plants and 1 Kleber plant are located in the same town, we count 2 manufacturing locations. Don't confuse the following words: manufacturing location (or manufacturing site) translated in French by "site de production"; manufacturing plant (or facility) translated in French by "usine de production".

3. History of Michelin Ballymena Opened 1969 Activities: Production of Heavy Truck,Bus and Recreational Vehicle Tyres Rubber Compounding (Z) for Ballymena, other UK plants and Export to Europe

4. Michelin Ballymena Currently 1000 employees Plus 65 Contractors 24 Hour operation 358 days per year 4 team, 12 hour shift operation + day shift Daily production levels: 4250 truck and bus tyres. 250 tonnes of rubber for Ballymena and Dundee.

5. The pneumatic tyre A highly complex product: more than 200 materials over 30 semi-finished  products Produces some challenging recycling streams ! The tyre is a high technology product which uses a great variety of techniques and materials. It is assembled from thirty intermediate components called semi-finished products which themselves comprise around two hundred different materials. For example: - Natural rubber; this is made from the latex tapped from a rubber tree (South American �heveas�). This material only came into full industrial use after the development of the vulcanization process by the American Charles Goodyear in 1839, patented in 1844. Indeed, in its natural state rubber is useless. It has to be heated in the presence of sulphur for it to acquire the qualities for which it is appreciated: firmness, elasticity and good resistance to abrasion. This chemical reaction is called vulcanization. - Synthetic rubber; faced with the risk of shortages in natural rubber during World War II, American government research scientists developed substitute materials. Now, many kind of synthetic rubbers are available, each with specific properties. - The "reinforcing fillers": carbon black or silica. - The "tread bracing". There are two types: textile cords and steel cords. They are the skeleton of the tyre. The tyre envelope is made up of several parts, each having a specific function: - the interior rubber provides the sealing, - the sidewalls give flexibility and comfort and act as the tyre�s "bumpers", - the belt guarantees good road-holding, - the tread, in contact with the road, provides grip and resistance to wear, - the beads hold the tyre onto the rim (by the bead wires) and maintain the seal. Each design of tyre is a subtly balanced assembly of all these elements.The tyre is a high technology product which uses a great variety of techniques and materials. It is assembled from thirty intermediate components called semi-finished products which themselves comprise around two hundred different materials. For example: - Natural rubber; this is made from the latex tapped from a rubber tree (South American �heveas�). This material only came into full industrial use after the development of the vulcanization process by the American Charles Goodyear in 1839, patented in 1844. Indeed, in its natural state rubber is useless. It has to be heated in the presence of sulphur for it to acquire the qualities for which it is appreciated: firmness, elasticity and good resistance to abrasion. This chemical reaction is called vulcanization. - Synthetic rubber; faced with the risk of shortages in natural rubber during World War II, American government research scientists developed substitute materials. Now, many kind of synthetic rubbers are available, each with specific properties. - The "reinforcing fillers": carbon black or silica. - The "tread bracing". There are two types: textile cords and steel cords. They are the skeleton of the tyre. The tyre envelope is made up of several parts, each having a specific function: - the interior rubber provides the sealing, - the sidewalls give flexibility and comfort and act as the tyre�s "bumpers", - the belt guarantees good road-holding, - the tread, in contact with the road, provides grip and resistance to wear, - the beads hold the tyre onto the rim (by the bead wires) and maintain the seal. Each design of tyre is a subtly balanced assembly of all these elements.

6. Michelin Corporate Values Respect for customers Respect for people Respect for shareholders Respect for the environment Respect for facts

7. Respect for the environment Choice of materials During tire manufacturing During tire service life After its service life What are we doing for the environment ? -Choice and use of materials We have to get the most from materials in order to consume less, while offering the customer the best tire performance. -Tire manufacturing We have to manufacture our tires in increasingly efficient factories and use less energy, while guaranteeing the highest quality products -During its use Long-lasting tires maximize the energy investment made during their manufacture. Tires with low rolling resistance reduce vehicles' fuel consumption. Tires which can have a second or even a third life limit raw material consumption. Tires can also play an active role in the reduction of road noise. -After its service life A tire has an energy potential that can be used in cement work,s for example. (Burning an old tire yields the equivalent of 10 liters of oil.). Enhanced value of used materials is the second axis explored by Michelin for the tire that has finished " its service ".What are we doing for the environment ? -Choice and use of materials We have to get the most from materials in order to consume less, while offering the customer the best tire performance. -Tire manufacturing We have to manufacture our tires in increasingly efficient factories and use less energy, while guaranteeing the highest quality products -During its use Long-lasting tires maximize the energy investment made during their manufacture. Tires with low rolling resistance reduce vehicles' fuel consumption. Tires which can have a second or even a third life limit raw material consumption. Tires can also play an active role in the reduction of road noise. -After its service life A tire has an energy potential that can be used in cement work,s for example. (Burning an old tire yields the equivalent of 10 liters of oil.). Enhanced value of used materials is the second axis explored by Michelin for the tire that has finished " its service ".

8. Environmental objective Zero process waste to landfill Dec 2008 Zero general waste to landfill Dec 2009 What are we doing for the environment ? -Choice and use of materials We have to get the most from materials in order to consume less, while offering the customer the best tire performance. -Tire manufacturing We have to manufacture our tires in increasingly efficient factories and use less energy, while guaranteeing the highest quality products -During its use Long-lasting tires maximize the energy investment made during their manufacture. Tires with low rolling resistance reduce vehicles' fuel consumption. Tires which can have a second or even a third life limit raw material consumption. Tires can also play an active role in the reduction of road noise. -After its service life A tire has an energy potential that can be used in cement work,s for example. (Burning an old tire yields the equivalent of 10 liters of oil.). Enhanced value of used materials is the second axis explored by Michelin for the tire that has finished " its service ".What are we doing for the environment ? -Choice and use of materials We have to get the most from materials in order to consume less, while offering the customer the best tire performance. -Tire manufacturing We have to manufacture our tires in increasingly efficient factories and use less energy, while guaranteeing the highest quality products -During its use Long-lasting tires maximize the energy investment made during their manufacture. Tires with low rolling resistance reduce vehicles' fuel consumption. Tires which can have a second or even a third life limit raw material consumption. Tires can also play an active role in the reduction of road noise. -After its service life A tire has an energy potential that can be used in cement work,s for example. (Burning an old tire yields the equivalent of 10 liters of oil.). Enhanced value of used materials is the second axis explored by Michelin for the tire that has finished " its service ".

9. 2006/7 progress Identified 44 waste streams Solutions for all but 5 62% diverted from landfill

10. 2008 breakthrough with Industry Professionals General waste sorted by waste management company Bulk powders used in civil engineering projects and composting Rubber/metal composites to flood defence work Bulk bags (FIBC�s) reused and material recovery Residual scrap carcasses to play areas / non skid road surfaces

11. Breakthrough result Solutions to the 5 �difficult� streams through NISP assistance Remaining 963Tonnes diverted from landfill Additional financial saving of �54K to date 2 new jobs created Achieved recycling result 99.1% in 2008 Identified further savings potential for 2009

12. The recycling journey Pre 2006 : waste to landfill (a liability) 2008: zero waste to landfill (cost neutral) 2008/9 zero waste to landfill (with significant savings) �100% recycling does make good business sense�

13. So how do you get people on board? You have to change the mindset of Senior Management How many of you have waste? How many of you have untapped assets?

14. Step one � know what you have Identify the different waste streams Know your monthly tonnages for each stream Calculate a per tonne cost for each stream (gasp!)

15. Step two � separate streams into assets and liabilities Metal, plastic, paper and cardboard are assets that can be sold The rest fall in to the liability category

16. Step three � go for early success Realise your assets Save some money Prove to your Board that recycling makes good business sense

17. Step four � get the Recycling Professionals in Many new recycling outlets and innovative solutions will become available Liabilities WILL become assets Your overall operating costs WILL reduce Your accounts department WILL love you.

18. Remember! The escalating cost of landfill disposal Landfill tax escalator �8 per tonne per year from 2008-9 to 2010-11 Net increase from �24/T to �48/T

19. Act now � engage with NISP today!

20. Questions