De-inking and Markets Reliance Fibres Ltd. UK are International Traders of all grades of Recovered Paper, Surplus or Damaged Reels. We can provide expert advice on all aspects of Recycling of Recovered Paper, we specialise in De-inking markets. Reliance Fibres Ltd., purchases & sells to India all grades of Recovered Paper, in the form of Baled, Palletised or Roll Stock. We believe in offering Solution based raw material to our consumers based upon their product out put. We have close knit tie ups with suppliers in USA, UK & mainland Europe. For further details about us visit www.reliancefibres.com This presentation is a Techno Commercial presentation intended for the paper industry to understand the availability of Recovered Paper for De - Inking This presentation is compiled by: Pankaj Chowdhary Director Reliance Fibres Ltd. 174, Granville Road, London NW2 2LD, UK Phone: +44 20 8458 0441 Fax: +44 20 8458 0120 Efax: +44 20 8181 6331 Email: pankaj@reliancefibres.com Disclaimer - All pictures are original taken or edited by person's responsible for presenting this paper, pictures are taken at various recycling depots in Europe / UK & USA and not copied from any website, journal or trade manual. All reference to specifications for recovered paper made are as per official specifications published by ISRI , CEPI or relevant authorities. Reliance Fibres Ltd does not claim responsibility for suggestions made or prices indicated during the course of this presentation or thereafter. Opinion expressed in this presentation is personal and not binding.

Rising Recovered Paper Consumption in India India is currently using 3 million tonnes of Recovered Paper Annually (both imported & domestic) Consumption of Recovered Paper estimated at 5-6 million tonnes by 2010 Annual Imports 1.5 million tonnes currently , increasing at 7% annually. Indian Paper & Board consumption is growing at about 6.4% annually Per Capita consumption of Paper currently stands at 5 -6 kgs with a total capacity of 6.2 million tonnes 30 to 40 kilograms of paper per capita per year considered the minimum level to meet basic needs for communication and literacy. In the industrialized countries, consumption is vastly greater – over 200 kilograms per capita per year in the United States and around 160 kilograms per capita per year in Western Europe. While China dominates the recovered paper consumption by 4-5 times especially in the lower grades like mix waste, corrugated & newspaper grades, it is now confirmed that India has emerged as a significant buyer of medium grades of recovered paper specially de-inking grades

Deinking Process Non Technically explained De-inking is a “pulp laundering” operation to remove printing ink and “stickies” (sticky materials like glue residue and adhesives). Papermakers often use a combination of two deinking processes. Small particles of ink are rinsed from the pulp with water in a process called washing. Larger particles and stickies are removed with air bubbles in another process called flotation. During flotation deinking, pulp is fed into a large vat called a flotation cell, where air and soap- like chemicals call surfactants are injected into the pulp. The surfactants cause ink and stickies to loosen from the pulp and stick to the air bubbles as they float to the top of the mixture. The inky air bubbles create foam or froth which is removed from the top, leaving the clean pulp behind.

Recovered Paper Grades RECOVERED PAPER CATEGORY FIBRE SOURCE RESULTING PAPER Pulp substitute grades Top quality waste from unprinted trimmings & off cuts from printers. Printing and writing papers, Top Layer in Paperboards e.g. Grey Board , Packaging Boards De-inking grades Office waste, long fibred higher quality grades, short-fibres newspapers & magazines Graphic paper and tissues, Copier Paper, Maplitho, Cream Wove, Newsprint, Top Layer in Paperboards e.g. Grey Board , Packaging Boards Kraft grades Brown unbleached packaging New packaging Lower grades Mixed papers Middle layers of packaging papers and boards

De inking Grades Classified for different types of Paper RECOVERED PAPER CATEGORY FIBRE SOURCE RESULTING PAPER News Print & Magazine Grades (Mechanical), News & Pams, ONP, Over Issue News, Magazines, Magazine Trimms, Telephone Directories Sorted Collections from Household, Printers , Publishing Houses Newsprint, Magazines and other low grade papers & Tissue Coated Book Stock, Multiprint, Sorted Office Paper , Multigrade Office waste, long fibred higher quality grades, Printers Copier Paper, Maplitho, Cream Wove, Blending with Newsprint, Top & Middle Liners for Paperboard Manifold White Ledger, Manifold Colour Ledger, Poly Cup Stock, Printed SBS High Grade Packaging & Industrial Forms White Bond Papers , Tissue, Top Liner for Paper Board Lower grades Mixed papers Strictly not for De-inking but we recommend sorting. Low Grade Papers

Grade Definitions in Europe , United Kingdom & USA Europe Grades UK Grades USA Grades CEPI & BIR have jointly Published Europe Grades have been categorised in five groups designated in a numbering system: • Group 1: Ordinary grades • Group 2: Medium grades • Group 3: High grades • Group 4: Kraft grades • Group 5: Special grades Although bound officially, in practice UK is still to adopt the CEPI / BIR Grades and most traders continue to use UK Grades which are categorised in 11 Groups: Group 1 - White, Wood-free, Unprinted Group 2 - White, Wood-free, Printed Group 3 - White, Lightly Printed, Mech. Group 4 - Coloured Woodfree Papers Group 5 - Heavily Printed Mechanical Group 6 - Coloured Kraft's & Manilas Group 7 - New KLS Group 8 – Kraft Container Waste Group 9 - Mixed Papers Group 10 - Coloured Card Group 11 - Contaminated Grades Probably the most widely used description is based on USA standards published by ISRI, currently known as PS-2005 is categorised into 51 grades and 35 special grades – Each Grade is specified by a number. For the purpose of our presentation we will discuss only De inking Grades

Europe - De Inking Grades GroupWise Group 1 Ordinary grades Group 2 Medium grades Group 3 High grades Group 3 High Grades Cont… Group 4 Kraft Grades & Group 5 Special grades 1.01& 1.02 – Mix Papers 1.06 & 1.06.01 – Unsold magazines 1.07 – Telephone Books 1.08, 1.09,1.10 – Newspapers & Magazines , Magazines & Newspapers 1.11 – Sorted Graphic Paper 2.01 Newspapers 2.02 & 2.02.01 Unsold newspapers, 2.03 & 2.03.01 Lightly printed white 2.04 & 2.04.01 Heavily printed white 2.05 Sorted office paper 2.06 Coloured letters 2.07 White Woodfree books 2.08 Coloured Woodfree magazines 3.01 Mixed lightly coloured printer shavings 3.02 Mixed lightly coloured Woodfree printer shavings 3.03 Woodfree binders 3.04 Tear white shavings 3.05 White Woodfree letters 3.06 White business forms 3.07 White Woodfree computer print-out 3.08 Printed bleached sulphate board 3.09 Lightly printed bleached 3.10 Multi printing Group 4 is not relevant to De inking Group 5 5.01 Mixed Recovered Paper & Board Unsorted

United Kingdom - De Inking Grades GroupWise Group 1 - White, Wood-free, Unprinted (not relevant to de-inking) Group 2 - White, Wood-free, Printed (this group has little relevance to De inking except grades like White Heavy Letter, Book Quire, CPO – we may ignore this for our discussions as not much of these grades would be relevant to India) Group 3 - White, Lightly Printed, Mechanical Scanboard Woody One Cuts Group 4 – Coloured Woodfree Papers Coloured Best Pams Coloured Continuous Business Forms Coloured Heavy Letter Coloured Shavings Coloured Tissue Multigrade Group 5 Heavily Printed Mechanical News & Pams Over Issue News Over Issue Pams Telephone Quire Group 6 Coloured Krafts & Manilas (not relevant to de- inking) Group 7 – New KLS (Kraft Liner – not relevant to de inking Group 8 – Kraft Container Waste (OCC not relevant to De inking Group 9 - Mixed Papers Mixed Papers Group 10 – Coloured Card (Not relevant to De Inking) Group 11 – Contaminated Grades Co mingled

USA – PS 2005 De Inking Grades (2) Mixed Paper (6) News (7) News, De-ink Quality (#7 ONP) (8) Special News, De-ink Quality (#8 ONP) (9) Over-Issue News (OI or OIN) (10) Magazines (OMG) (22) Mixed Ground wood Shavings (23) Telephone Directories (27) Flyleaf Shavings (33) New Coloured Envelope cuttings (37) Sorted Office Paper (SOP) (39) Manifold Coloured Ledger (MCL) (40) Sorted White Ledger (SWL) (41) Manifold White Ledger (MWL) (42) Computer Printout (CPO) (43) Coated Book Stock (CBS) (45) Printed Bleached Board Cuttings (46) Misprinted Bleached Board (49) #2 Printed Bleached Cup Stock (#2 Cup) Single Stream

1.08, 1.09,1.10 Newspapers & Magazines , Magazines & Newspapers 1.08 Mixed newspapers and magazines 1 - A mixture of newspapers and magazines, containing a minimum of 50% of newspapers, with or without glue. 1.09 Mixed newspapers and magazines 2 - A mixture of newspapers and magazines, containing a minimum of 60% of newspapers, with or without glue. 1.10 Mixed magazines and newspapers - A mixture of newspapers and magazines, containing a minimum of 60% of magazines, with or without glue. News & Pams / Newspapers & Magazines is the most important Newsprint Grade for India, This grade is available in bulk from Europe (mainly Netherlands / Belgium / France & UK). News & Pams from UK is likely to be a better quality Grades 1.08 / 1.09 & 1.10 are very intermingled and the final quality is much between the buyer and sell and depends on origin of the material. Advantages – Easily and cheaply available Disadvantages – This is generated from household Collections hence will tend to have some out throws (3-4%) minor Qtty of kraft (2%) may be present. Similar USA Grade ONP 7 & 8 UK Grade Group 5 News & Pams

ONP 7 & 8 Similar Europe 1.08, 1.09,1.10 Newspapers & Magazines (7) News, De-ink Quality (#7 ONP) Consists of sorted, fresh newspapers, not unburned, containing not more than the normal percentage of rotogravure and colored sections. May contain magazines. Prohibitive materials..................None permitted Total Outthrows may not exceed .........1/4 of 1% (8) Special News, De-ink Quality (#8 ONP) sunburned, free from magazines, white blank, pressroom over-issues, and paper other than news, containing not more than the normal percentage of rotogravure and colored sections. This grade must be tare-free. Prohibitive materials....................None permitted Total Outthrows may not exceed...........1/4 of% This is also a important grade for Indian Newsprint manufacturers, especially the usage of this would go up in India when the prices of News & Pams is higher In our opinion the quality of ONP from USA would be likely to be better than News & Pams from Europe However it is to be noted although sold in India as News No. 8 , the quality being shipped to India is a quality which is a mix of grade No. 7 & 8 , locally this is known as News 7 & 8 Advantages – Easily and cheaply available Disadvantages – This is generated from household Collections hence will tend to have some out throws / minor Qtty of kraft may be present. Similar Europe 1.08, 1.09,1.10 Newspapers & Magazines UK Grade Group 5 News & Pams

Over Issue News - UK Europe 2.02 & 2.02.01 Unsold Newspapers Unsold newspapers free from pins, coated or sized papers, paper containing water retardant chemicals. Maximum of 5 percent lightly dyed newsprint and supplements (provided they are stapled) may be included by agreement with mill. Objectionable materials: 1 percent. This is a better Newsprint grade than News & Pams or ONP. However OINP is more expensive to import to India as the price tends to be similar to that of Magazine trims / OI Magazines / OI Pams Gulf Countries supply significant amount of OINP to India. Hence not much Qtty is imported from Western Markets Advantages – Easily available / More Black & White / Without Outthrows Disadvantages – More Expensive than News & Pams Similar USA Grade PS 9 – OIN Europe 2.02 & 2.02.01 Unsold Newspapers

UK Grade Group 5 Over Issue Pams 1.06 & 1.06.01 Unsold magazines 1.06 Unsold magazines - Unsold magazines, with or without glue. 1.06.01 Unsold magazines - without glue Unsold magazines without glue. Magazines Could be available in pallets also Very good grade for high quality Newsprint / Mechanical Papers / low grade tissue. This grade is mostly available in baled form, however pallet stock is also available. Advantages – Price effective / Clean / May have some wood free content Disadvantages – Can have very heavy coating & printing. Similar USA Grade PS 10 OMG UK Grade Group 5 Over Issue Pams

Over Issue Pams - UK Europe Grade 1.06 & 1.06.01 Unsold magazines Over issue periodicals or magazines printed on mechanical coated or uncoated paper, stapled but not bound in a latex glue. Free from plastic laminated or varnished covers. May contain a maximum of 5 percent dyed paper by agreement. Objectionable materials: 1 percent. Very good grade for high quality Newsprint / Mechanical Papers / low grade tissue Advantages – Price effective / Clean / May have some wood free content Disadvantages – Coated Papers We highly recommend users of OI Magazines to use this grade Similar USA Grade – PS 10 OMG Europe Grade 1.06 & 1.06.01 Unsold magazines

Woody One Cuts (Magazine Trims) - UK Shavings of newsprint or other mechanical papers, lightly printed; may contain maximum 10 percent coloured print but not dyed paper. Must not contain latex tips or other bindings or magazine trim. May contain coated papers and some wood free trim by agreement. Objectionable materials: none Very good grade for manufacture of high quality Newsprint / Mechanical Papers like coated magazines Papers with Glue should be avoided Advantages – Very clean and bright. Similar Europe 2.03 & 2.03.01 Lightly printed white shavings USA PS 27 Flyleaf Shavings

USA Grade – PS 37 Sorted Office Paper Consists of paper, as typically generated by offices, containing primarily white and colored groundwood free paper, free of unbleached fiber.May include a small percentage of groundwood computer printout and facsimile paper. Prohibitive materials may not exceed...........................2% Total Outthrows may not exceed..................................5% This grade is a very cost effective wood free grade for manufacture of Woodfree papers More & more SOP is likely to be shredded in future. Highly recommended after sorting. USA material tends to have better ledger papers. Advantages – Bright / Woodfree / good fibre yield Disadvantages – being post consumer it has heavy out throws Similar Europe Grade 2.05 Sorted Office Paper

3.10 Multi Printing - Europe 3.10 Multi printing - Woodfree, coated, lightly printed, free from wet-strength paper or paper coloured in the mass. Same as CBS or Colour Best Pams this is a bulk grade from Europe (Netherlands / Belgium / France) This grade is a very cost effective wood free grade for manufacture of Woodfree papers. Good Qtty of this grade is imported from Europe Advantages – Bright / Woodfree Disadvantages – Heavy Coated & Printed, Beware of UV / Foil printing / lower fibre yield Similar USA Grade PS 43 Coated Book Stock UK Grade Group 4 Coloured Best Pams

USA Grade – PS 43 Coated Book Stock Consists of coated ground wood free paper, printed or unprinted in sheets, shavings, guillotined books and cuttings. A reasonable percentage of paper containing fine ground wood may be included. Prohibitive materials.................................None permitted Total Outthrows may not exceed..................................2% Although slightly expensive than Euro Multiprint / Colour Best Pams, USA material tends to be better than from Europe This grade is a very cost effective wood free grade for manufacture of Woodfree papers More CBS from USA is bought when Europe prices are higher. Advantages – Bright / Woodfree Disadvantages – Heavy Coated & Printed, Beware of UV / Foil printing / lower fibre yield Similar UK Grade Group 4 Coloured Best Pams Europe - 3.10 Multi Printing

Multiprint - USA Multigrade A mixture of Wood free ledger, book binder ledger, CBS and SOP this grade is a emerging grade available in limited Qtty Similar to UK Multigrade, however PS does not define this grade. Advantages – Bright / Woodfree / Better Fibre yield / Clean Disadvantages – May contain some shredded paper / quality will be over a range as this is really a blend of different papers Similar UK Grade Group 4 Multigrade

Multigrade UK A mixture of various papers whose overall appearance must be bright and light. A maximum of 25 percent of coloured best pams may be in each bale, the remainder consisting of 25 percent Woodfree coloured shavings and a minimum of 15 percent white heavy letter or woodfree book quire. The rest of the bale may be made up of thermo-mechanical fibres to a maximum of 10 percent. Must be free from all latex binders, self-adhesive labels and other contraries. These percentages may be varied by agreement with the buyer. Objectionable materials: none. A mixture of Wood free ledger, wood free trims , CBS and SOP this grade is available in good Qtty from UK This is in our opinion the most cost effective grade for wood free papers Advantages – Bright / Woodfree / Better yield Disadvantages – May contain some shredded paper / quality will be over a range as this is really a blend of different papers We highly recommend this grade Similar USA Grade Multiprint

Plastic Window Envelopes – Europe Similar Grade – USA New Coloured Envelope Cuttings No. 33

Light Colour Letter - UK Coloured writing paper lightly printed on one side or typed or written on both sides. May also contain Woodfree sulphate boards printed on one side only. Free from manila file covers, binders, envelopes, plan paper, heavily loaded papers, deep dyed or well beaten papers, and printed circular letters or any thermo-graphic or xerographic print. Maximum 10 percent mechanical or thermo-mechanical fibres may be included by agreement; cheque waste may also be included by agreement. Objectionable materials: none (can include pins, staples, etc.). Not imported in huge Qtty in India, very good for high quality papers as requires little de inking Advantage – Wood free / clean / high fibre yield Disadvantages – High Price Similar Europe - 2.06 Coloured Letters USA – PS 39 Manifold Coloured Ledger (MCL)

Sorted White Ledger – USA PS 41 Similar Grades UK - Group 2 - White, Wood-free, Printed – White Heavy Letter Europe : 3.05 White Woodfree letters Consists of sheets, shavings, and cuttings of industrially-generated printed or unprinted white ground wood-free paper. All stock must be uncoated and free of no impact printing. Prohibitive materials may not exceed...................1/2 of 1% Total Outthrows may not exceed..................................2% Imported by high grade manufacturers Advantage – Wood free / clean / high fibre yield Disadvantages – High Price

Manifold White Ledger – USA PS 41 Consists of sheets, shavings, and cuttings of industrially-generated printed or unprinted colored or white groundwood-free paper. All stock must be uncoated and free of no impact printing. A percentage of carbonless paper is allowable. Prohibitive materials may not exceed...................1/2 of 1% Total Outthrows may not exceed..................................2% Imported by high grade manufacturers Advantage – Wood free / clean / high fibre yield Disadvantages – High Price Similar Europe – 3.06 White Business Forms UK – White Heavy Letter

Printed SBS - USA Similar Grades – (45) Printed Bleached Board Cuttings Consists of ground wood free printed bleached board cuttings, free from misprint sheets, cartons, wax, greaseproof lamination, gilt, and inks, adhesives or coatings that are insoluble. Prohibitive materials may not exceed...................1/2 of 1% Total Outthrows may not exceed..................................2% Imported by high grade manufacturers Advantage – Wood free / clean / high fibre yield Disadvantages – High Price Similar Grades – Europe 3.09 Lightly printed bleached sulphate board

Printed Bleached Sulphate Board- 3.08 & 3.09 Europe Similar Grades – Printed Bleached Board USA

Similar USA Grade PS 3—S Plastic Coated Cups Poly Cup Stock - Europe Although not strictly defined this grade is popularly known as ‘Pepsi cup’ , this grade consists of a poly coating on one side on which it is ‘right side’ printed (i.e.) printed on the outside, the poly when removed in pulping leaves a almost pure pulp stock Imported by high grade manufacturers , Advantage – Wood free / clean / high brightness Disadvantages – High Price / low fibre yield / some wrong side printing will leave colour In the pulp stock Similar USA Grade PS 3—S Plastic Coated Cups

Mix Papers - Europe (Soft) 1.01 Mixed paper and board, unsorted, but unusable materials removed A mixture of various grades of paper and board, without restriction on short fibre content. 1.02 Mixed papers and boards (sorted) A mixture of various qualities of paper and board, containing a maximum of 40% of newspapers and magazines. Sorting of mix paper is a cost effective way of obtaining news & pams and other bleached papers. However this will leave kraft and other papers which must be separately used. Mix Paper from household collections will tend to have more bleached mechanical papers. Advantages – Low Price Disadvantages – Sorting required Similar USA Grade PS No.1 & No. 2 Mixed Paper UK Grade Group 9 Mix Papers

Hard Mix - UK Similar USA Grade PS No.1 & No. 2 Mixed Paper Mixed Papers - Mixed and various types of repulpable paper, cartons and board. Must not contain more than 10 percent of news and pams or wet strength materials. Objectionable materials: Maximum 5 percent, but not including wax or bitumen. Advantages – Low Price Disadvantages – Sorting required Similar USA Grade PS No.1 & No. 2 Mixed Paper Europe Grade 1.02 & 1.02

Single Stream - USA Similar Grade – UK Commingled Unsorted House hold collection , this is typically raw stock from which all post consumer OCC & News papers are sorted, due to labour cost advantages in India huge volumes of this grade have been imported in India. However this grade has not been defined Advantages – Very Cheap, huge cost advantage in sorting Disadvantages - Very heavy out throws / Environmental Issues Similar Grade – UK Commingled Similar UK & Europe Grade Commingled

Commingled – Europe / UK This grade has not been defined – we are advised that the UK authorities have stopped export of this grade until the same can be defined and classified. Hence we will not attempt to define this grade Advantages – Very Cheap, huge cost advantage in sorting Disadvantages - Very heavy out throws / Environmental Issues Similar USA Grade Single Stream

The prices mentioned above are CIF Nhava Sheva Port / for other ports prices will vary. Prices are indicative and not binding

Thank You Visit us at www.reliancefibres.com For more information