Challenges for Non-Bottle Rigid Container Molders to Comply With PCR Legislation May 2000

Topics u Rigid plastic container overview u Processing u Market overview u Recycling issues u Plastic container resin and molding technology u Lightweighting u Industry trends u California regulations

Packaging plastic options u Blow molding u Bottle formed with small opening u Vacuum thermoforming u Sheet of plastic melted on a steel mold u Injection molding u Melt resin pellets u Forced into a steel mold u Cooled to form part

North America -- Total Plastics Consumption Non-Bottle Rigid Containers Account for only 3% of the total plastics stream

Plastics Collection Programs 1 Actual is higher due to non-responding communities. Source: RW Beck

Non-Bottle Rigid Containers - Resins Used for Manufacture Source: RW Beck

Recycling Issues u Variety of resins used in rigid packaging u Melt flow index within resin families High Density Polyethylene PackageMelt FlowFlows Like Milk jugs1 meltHoney 1 gallon industrial20 meltSyrup Butter tub50 meltSalad dressing Lids100 meltWater

Non-Bottle Rigid Containers - Barriers to Recycling u Relatively small size of waste stream u Many polymer types - different polymer performance attributes (PP; HDPE; LLDPE; PS; PET; PVC) – only PP, HDPE and LLDPE recyclable as co-mingled - all polyolefins u Sorting technology not yet developed u Even within single polymer streams - many polymer types --- (eg. different melt flow resins)

Injection molders use highly-engineered resins to attain thinwalling (lightweighting) u High melt index resins > melts u PCR 18 to 1 melt index  Must thicken part to use PCR u Increased energy cost u More plastic in landfill u Consumers will have increased costs

2000 container vs container u 46% less plastic u 200 million containers used annually in U.S. u 32 million lbs. of resin u 15 million lbs of resin saved u 1,500 truckloads of plastic not going to the waste stream annually

Polypropylene Dairy Containers Case Study Example Wax Paper (1970’s) Polypropylene (PP) (Mid- 1980’s) PP - 2nd generation technology 1990’s PP - 3rd generation technology 2000’s (specialized resins) 33% Reduction

Technology Trends - Rigid Plastic Containers Resin and polymer processing technology advancing – Lightweight – Increase strength of containers Higher production rates and lower unit energy consumption More customized and tailored resins --- to minimize resin consumption, increase production rates and reduce costs Major Environmental Benefits Resource Conservation - lighter weight packaging/less raw materials usage Less Energy/Emissions in fabrication & shipping

Key Environmental Concerns Resin Technology Trend Increased Light-weighting Recycle-Content Resin Trend Heavier Gauge Containers

Compliance with current SB135  Lightweight containers u Limited PCR usage

California-Proposed Regulations/Issues Recycle-Content Resins Source Reduction No FDA Food Grade resin supply available in higher technology resins Traceability of PCR resins Lower melt flow resins will tend to drive processors towards heavier containers Cost reduction is already providing adequate incentives Would penalize companies who source-reduced early -- lower base year container weight

The plastic packaging industry and environmental groups have opportunities to reduce plastic waste

u Find and grow markets that can produce products using PCR u Use R&D departments of resin companies, mold makers and machine manufacturers to further develop engineered resins to allow lighter part weights u Today the plastic packaging industry gives the consumers their preferred packaging, a reusable, recyclable, resealable, lightweight container. The future can be even brighter with the use of technology to further reduce plastic waste.