Owens-Illinois and Glass Recycling Virginia recycling Association May 17, 2017 Mike Smaha, U.S. Government Affairs
O-I At a Glance World’s leading glass container manufacturer Founded in 1903 as Owens Bottle Company Merged with Illinois Glass Company in 1929 to become Owens-Illinois, Inc. $6.7 billion in net sales in 2016 79 plants in 23 countries Joint ventures in China, Italy, Malaysia, Mexico, the United States and Vietnam 27,000+ employees worldwide 2,100 plus worldwide patents More than a century of experience crafting glass packaging for many of the world’s best-known food and beverage brands
Preferred partner for well-known global brands We work with global, regional and local customers in all of our markets. These brands care about glass recycling! These are just a few of the global customers that we serve. THEME: WHO WE MAKE IT FOR We melt 4.2 million metric tonnes in North America (US, Mexico, Canada). People want to recycle! Just look at the large bin that EVERYTHING is thrown into and collected weekly. That tells the real story of the crisis recycling has become. . . And the untold part of the story is that people just assume that when they discard the recyclable items in the big blue bin that it is used appropriately. We work with global, regional and local customers in all of our markets. These are just a few of the global customers that we serve. These customers and many have brands that you are probably very familiar with. (Share some of your own favorite brands.) Goose Island, Sierra Nevada, Makers Mark, Coors Original . . .
Our Global Presence 23 Countries 79 PLANTS
North America 19 5,200 HQ: Perrysburg, Ohio, U.S. OPERATIONS IN: Canada, United States MAJOR CUSTOMERS: Anheuser- Busch InBev, Diageo, Heinz, MillerCoors, Brown-Forman (Jack Daniels), Pepsi Co. R&D INNOVATION CENTER
O-I Danville O-I Toano 150 employees; In operation since 1978 Produces 1.95 million bottles a day/679.6+ million per year for MillerCoors’ Elkton brewery. Used 29,600+ tons of recycled glass in 2016. Roughly 86 tons per day. O-I Toano 245 employees; In operation since 1980. Produces 1.9+ million bottles/containers per day/693+ million per year for beer, liquor and food customers. Used 61,900+ tons of recycled glass in 2016. Roughly 169 tons a day. Danville relies on amber glass to produce brown bottles. Supply comes from Michigan, NY and PA. No local processor in Virginia. MillerCoors, AB, Dogfish Head, Toano uses both brown and flint glass supplied from North Carolina, New Jersey, Massachusetts, New York and Connecticut.
Glass: The Original Sustainable Package Glass is made from three primary raw materials – sand, limestone and soda ash – and recycled glass. The raw materials in glass are safe and abundant. Glass does not break down into harmful chemicals Glass is 100%, endlessly recyclable Recycled glass that’s made into new bottles creates no other waste or by-products. All of O-I glass plants are locally sourced from locations within the operating region. Virtually all of our primary raw material, silica sand, is sourced within 300 miles of less of our plants. BEAUTIFULLY SIMPLE LOCALLY SOURCED RECYCLABLE, REFILLABLE, REUSABLE
Recycled Glass: Good for the Planet LOWERS ENERGY AND EMISSIONS For every 10% increase in recycled glass used: 3% reduction in energy 5% reduction in carbon emissions RECYCLED GLASS USED BY O-I In 2016, 4.6M tonnes of post-consumer recycled glass was utilized globally, 40% of total tonnes melted O-I is the largest purchaser of recycled glass Global Goal: 60% PCR cullet in production KEY HURDLE Largest challenge is obtaining clean and steady supply of cullet at competitive price
GLASS RECYCLING COALITION Corporate Responsibility: Current Initiatives Members include 30+ organizations representing glass manufacturers, haulers, processors, material recovery facility, brands Goal is to create a non-competitive coalition to “make glass recycling work.” GLASS RECYCLING COALITION Founded to help communities move to zero waste, operating a bottle-to-bottle glass recycling plant in Colorado Goal is to leverage industry leading technology to make glass recycling simple and effective for Colorado MOMENTUM RECYCLING O-I supports the use of refillables, with more than 6 billion refillable bottles in circulation worldwide Shift to NNPB production process opens the opportunity to reduce weight RETURNABLES O-I supports municipal initiatives to offer alternative collection and recovery systems to keep glass out of the waste stream Maintain and increase the supply of material available to the container industry, reducing the need for virgin materials CULLET RECOVERY CLOSED LOOP PARTNERS Social impact fund investing to unlock value by providing low interest loans to cities and companies to build recycling infrastructure Goal is to increase volume of glass recovered and recycled into glass containers by 33% over 5 years in NA
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