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					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
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
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
Resin Sales and Captive Use
Total Global Polymer Demand
 (154.3 million metric tons/340.2 billion pounds)



                                    North
                                   America
                                    30%
  Rest of
the World
  (ROW)
   38%

            Japan              Western
             7%                Europe
                                25%
U.S. Business of Chemistry: Segment
Growth (Average Growth 1994/04 vs.
2005/15)
North American Thermoplastic Resin
Consumption by Market
       Adhesives, Inks &      Other
                                                Automotive &
               Coatings         3%    Exports
                                                Transportation
  Industrial     1%                    11%
                                                     6%           Building &
 Machinery
                                                                 Construction
     1%
                                                                     18%

 Furniture &
 Furnishings
      4%

     Electrical &
      Electronic
           4%                                                    Packaging

                      Consumer &                                   34%

                      Institutional
                          14%
International Trade
Data from The Society of the Plastics Industry
        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
        Plastics Recycling



     American Plastics Council
2004 National Post-Consumer Plastics
          Recycling Report
Growth in Post-Consumer Plastic
Bottle Recycling

 Millions of Pounds Recycled   2,500

                               2,000

                               1,500

                               1,000

                                500

                                  0
                                     90

                                     91

                                     92

                                     93

                                     94

                                     95

                                     96

                                     97

                                     98

                                     99

                                     00

                                     01

                                     02

                                     03

                                     04
                                  19

                                  19

                                  19

                                  19

                                  19

                                  19

                                  19

                                  19

                                  19

                                  19

                                  20

                                  20

                                  20

                                  20

                                  20
                   Source: R. W. Beck, Inc.
2004 Plastic Bottle Production and
Recycling Composition by Resin Type


             Plastic Bottle Recycling                           Plastic Bottle Production
                              Other                             Other
                               <1%                               4%


          HDPE                                               HDPE
           47%                                               41%
                                  PET                                               PET
                                  53%                                               55%




Source: R. W. Beck, Inc.
Other includes PVC, LDPE/LLDPE, and PP; data was not collected for PS in 2004
   Size Comparison of Domestic
Reclaimers of PET and HDPE Bottles
                                                             22 Million
     PET Bottle Reclaimers                                 (5 Companies)
     Total Pounds= 628 Million
     Total Companies= 14 Companies
                                        177 Million
     Company Size Classification
                                      (5 Companies)
     (Millions of Pounds Processed)




                                           426 Million
                                         (4 Companies)
                                                         >55    15 to 55   <15



                                                          23 Million
     HDPE Bottle Reclaimers
                                                       (16 Companies)
     Total Pounds= 758 Million
     Total Companies= 30 Companies       66 Million
                                       (6 Companies)
     Company Size Classification
     (Millions of Pounds Processed)




                                                                          669 Million
                                                                        (8 Companies)
                                              >15     5 to 15   <5
Domestics Recycled PET Bottle End Use

                                   Com pounded
             Film /Sheet
                                      Resin
                 5%
                                        1%       Clean Export
                                                     <1%

      Non-Food
     Containers
         9%



     Food/Beverage
       Containers                                       Fiber
          12%                                            52%




              Strapping
                 13%




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

                                     Other/Non-   Autom otive
                                     Classified       3%
            Pallets/Crates/             1%
                Buckets
                  2%

      Lum ber
        8%

      Film /Sheet                                               Non Food
          7%                                                     Bottles
                                                                  41%

     Law n/Garden
         11%




                              Pipe
                              21%




                    Source: R. W. Beck, Inc.
                     PET Bottle Wash Capacity in the U.S.

                                                            Utilized Capacity      Excess Capacity

                     1,200
Millions of Pounds




                     1,000
                      800                                                                          448      450      383                        309
                                                               475      575      600      448                              330          363
                                                                                                                                 330
                      600                             340
                      400                    281
                                    203                                                                                                         628
                                                                                                   559      560      617   600   520    517
                      200                             390      458      458      454      486
                                    277      309
                        0
                             1991     1992     1993     1994     1995     1996     1997     1998     1999     2000     2001   2002   2003     2004



                     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.
                 HDPE Bottle Wash Capacity in the U.S.


                                                            Utilized Capacity     Excess Capacity

                     1,400
                     1,200
Millions of Pounds




                     1,000                                                               671      658      600      601                           322
                                                                                                                             474      408   337
                      800                                               598     598
                                                               480
                      600                             381
                                             292
                      400                                                                                           659                     723   758
                                    199                                                  600      632      650               656      662
                      200                                      483      526     526
                                             358      401
                                    225
                        0
                             1991     1992     1993     1994     1995    1996     1997     1998     1999     2000     2001     2002     2003   2004



                      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.
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.
     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.
              Polystyrene Recycling



2004 EPS Recycling Rate:                       12%
Post-consumer recycled:                        25M lbs

Source: Alliance of Foam Packaging Recyclers
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
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
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
                     Business of Chemistry
                     Exports, Imports and Trade Balance
        Imports: $112.3                Exports: $109.3         Trade Balance: -$3.6

             125

             100
$ billions




             75

             50

             25

              0

             -25
                   1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

                       Trade Balance              Exports              Imports
Share of U.S. Chemical Exports/Imports by
Sector
2004, 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
Total Business of Chemistry 2003
FDIUS: $123.2 billion
                       ROW
          Canada 3%
                           8%   Switzerland
    Japan
                                   20%
     5%
            United
          Kingdom
             11%



                                     Netherlands
                                            19%

                Germany            France
                     15%            19%
Total Business of Chemistry 2003
USDIA: $90.3 billion
                                             Canada
                                              14%



      ROW                                     Netherlands
       39%                                          13%




                                              United
                                             Kingdom
        Japan                                  12%
                                   Ireland
         5%     France   Belgium
                                     7%
                 5%        5%
          20032%
Source of0%    Global Growth
                   4%    6%    8%   10%


         China

          India

  United States

         Japan

United Kingdom

     Eurozone
Business of Chemistry
Long Term Global Growth Trends
Regional Population, Per Capita Plastics
Consumption, and Population Growth
                                    160
Thermoplastics Consumption/Capita




                                    140                                                                United
                                                                             Other Western             States
                                    120                           Italy         Europe
                                                    Japan
                                    100                                                       Canada
                                                                                    United              Mexico
                                     80                                            Kingdom             (hidden)
               (KG)




                                                       Germany      France                                        Other Asia-Pacific
                                                                                         Other East
                                     60                                                       Asia
                                                                                       Brazil                                 Africa & Middle
                                     40                  Russia                                             India                   East

                                     20
                                       0
                                                                                      China
                                    -20
                                      -1.0%           -0.5%               0.0%         0.5%            1.0%              1.5%            2.0%
                                                   Average Annual % Change in Population (2003-50)

                                    Note: Bubble size represents population in 2003
Regional Population, Per Capita Plastics
Consumption, and Population Growth
                                    160
Thermoplastics Consumption/Capita




                                    140                                                                                United
                                                                  Italy            Other Western                       States
                                    120                                               Europe
                                                 Japan
                                                                                       United
                                    100                                               Kingdom        Canada
                                     80
               (KG)




                                                          Germany                                    Other East
                                     60                                   France                       Asia
                                                                                               Brazil
                                     40                  Russia
                                                                                                                   Mexico             Africa & Middle
                                                                                                                                            East
                                     20                                                                               Other Asia-Pacific

                                       0                                               China               India

                                    -20
                                      -1.0%              -0.5%               0.0%              0.5%               1.0%          1.5%             2.0%
                                                    Average Annual % Change in Population (2003-50)

                                    Note: Bubble size represents market size (in resin volume) in 2003
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
Final Note

   In considering global product recycling
   opportunities, life-cycle material and
   energy flows, domestically and across
   boarders, become critical to defining
   sustainability
Thank You

      Mike Fisher
mike_fisher@plastics.org

				
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