CRA Conference March 18, 2010

1. CRA Conference March 18, 2010

2. Presentation • Who is RMDAC and RIG? • What is the economic impact of recycling? • Discuss what recycling offers in terms of green jobs • What types of businesses make up the recycling industry?

3. Who We Are • Recycling Market Development Advisory Council (RMDAC) advises the SC Department of Commerce on: • Market development activities for a variety of commodities • Other initiatives such as research projects, recycling webinars and forums planned for 2010 • Recycling Industry Group (RIG) –founded by New Carolina and RMDAC; staffed by Commerce • Grass roots activities such as legislative day, recycling specialty plate, logistics maximization, and meetings with RMDAC • About 150 RIG contacts • Sonoco – anchor company

4. Recycling Industry Highlights Robust recycling industry in SC! • Economic impact study in 2006 by Dr’s Hefner and Blackwell • 325 businesses that broker, haul, process and/or manufacture recovered materials • 15,600 jobs. Jobs impact: 37,440, For every 1 job in recycling, economic impact of 2.4 jobs. • Annual estimated income impact of $1.5 billion • Annual economic impact of $6.5 billion • $69 million state tax revenue • Growth in recycling businesses of 12% annually, expected economic impact of $11 billion in 5 years • Dr. Hefner wrote: “That recycling is beneficial for the environment is probably an uncontested proposition. What is becoming increasingly more obvious is that recycling contributes to the economic health of a state's economy.” Tomato Palms

5. Recycling Industry Investments PLUS 2005 Economic Impact $6,500,000,000 15,600 2010 Total Impact $9,764,000,000 19,203 Tomato Palms

6. 2009 Green Industry Investments • Green Economy - economic activity related to: • reducing the use of fossil fuels, • decreasing pollution and greenhouse gas emissions • increasing the efficiency of energy usage, • recycling materials, and • developing and adopting renewable sources of energy Tomato Palms

7. Recycling – Saves Money • Avoided disposal costs add to bottom line • Currently, Sonoco spends about $7 million annually on landfill fees for our plants in the U.S. By eliminating this cost, they can improve the bottom line by about 7 cents a share. That kind of savings is important to the business and to shareholders. • Zero waste to landfill – Freightliner Custom Chassis went from disposing 250,000 pounds per month of solid waste in January 2007 to disposing zero pounds in 2010 • Bausch and Lomb recycles 60% of its waste – net profit of $75,000 • Cooper Standard Automotive – diverted 200,000 lbs from landfill; saves them $16,000 a year in disposal fees

8. Recycling – Scrap Materials are Feedstock Electronics – hardware reused or shredded and recycled into new computer components Plastic bottles can go into new bottles, strapping, fiber or film Paper- new paper, fuel cubes for waste to energy Textiles – automotive industry, furniture Petroleum – re-refined or burned for energy recovery Wood – biomass, new pallets, mulch Glass – recycled glass required to make new glass

9. Recycling – ED impacts • Creating Jobs - Small investments in recycling collection can produce real benefits for a community in the form of well-paying jobs in the recycling industry, in the vast array of businesses that support the recycling industry, and in the manufacturing facilities that rely on recycled feedstock. • Saving Money - By diverting recyclable materials from the landfill, immediate economic benefits are produced through reduced disposal fees and the sale of recyclable materials. • Retaining Local Employers - Industries that need recyclable commodities and can obtain them from the surrounding region tend to remain in this region, and may even expand their operations.

10. Recycling –ED impacts • Generating Tax Revenue - Support of a vibrant recycling industry in the Southeast ensures continued receipt of sizable tax revenues that can be used to further improve communities. • Producing Economic Development Opportunities - Increased collection of materials attracts businesses that are interested in processing or using the materials. Recycling helps U.S. manufacturers compete in a high-pressure global economy.

11. Recycling Collection • Government-staffed collection • Private-staffed collection • Recycling Processing and Manufacturing • Compost/organic processing • Glass container manufacturing • Glass product producer (other recycled uses) • Household hazardous waste processor • Materials recovery facility (commingled materials) • Nonferrous product producer • Nonferrous foundry • Nonferrous smelting or refining mill • Oil processor • Recycling Processing and Manufacturing • Paper-based product manufacturing • (i.e. insulation, bedding) • Pavement mix producer – asphalt or aggregate • Plastics converter • Plastics reclaimer • Recyclable materials processor • (i.e. paper, metal) • Rubber product manufacturing • Steel or iron manufacturing • Steel mill Types of Recycling Companies

12. Reuse & Remanufacturing • Computer / electronic appliance remanufacturing • Equipment or toner cartridge remanufacturer • Motor vehicle part manufacturer • Retail used merchandise sales • Tire retreader • Wood reuse or pallet rebuilder • Support Business • Broker • Materials exchange services • Recycling and reuse equipment manufacturer • Transporter Types of Recycling Companies

13. Upstate Recycling Businesses

14. Recycling – Flagship Companies Sonoco – global packaging company that uses recycled content feedstock. Revenue for the 1st quarter 2010 was $1 billion. Collect 3.5 million tons paper and other recyclable materials including plastics, metal and glass. Nucor – largest steel recycler in North America. Darlington, SC mini mill produces approximately one millions tons of steel a year. NURRC (New United Resource Recovery Corporation) – joint venture with Coke - $60 million in investment in 2007; 100 million lbs of PET plastic recycled annually. That’s 2 billion 20 oz bottles.

15. Sales Tax Exemption On Recycling Equipment • Department of Revenue Form ST-10 • Balers, grinders, compactors, shredders, etc.

16. Bus. environment Regulations and policy Infrastructure investment Firm formation Incubator services Spin-off promotion Business services Process/HR Technical training Management training Technical standards Education system Production processes RIG- seven groups of activities clusters pursue Value chain Joint purchasing Joint logistics Joint production Supply-chain development Joint marketing Joint product branding Joint region branding Joint foreign market promotion Intelligence Market intelligence Technical trends Joint R&D Joint R&D projects

17. Recycling: Smart Business for South Carolina • RIG Initiatives • Jan 29 CEO Roundtable to discuss future policy and market development needs • Legislative Day for Recycling Industry on February 3, 2010. • SC Reduce Reuse Recycle license plate

18. Recycling: Smart Business for South Carolina • RIG Initiatives • Strategic plan for recycling industry • Logistics survey to determine opportunities for milk run routes, combining LTL quantities, optimizing transportation and logistics • Working with higher education to get R&D out of the universities and in the hands of industry • Outreach to elected officials, local governments, and other recycling businesses • Developing a presence at the SC State House • Tracking legislation • Working on developing incentives and policy

19. Recycling: Smart Business for South Carolina • RMDAC Initiatives • Carbon reduction through recycling • PAYT • Collaboration with higher education • Webinars • SEO/SEM optimization • Scrap tires • Used oil, re-refined oil strategy • Recycling Business Forum • Recycling Business Development Strategy • Industry Survey • Global business development cross selling • Company contact • Legislative monitoring • Green Purchasing • National and Regional Leadership • Hard to Recycle Commodities

20. Green Economy • Economic Activity related to: • reducing the use of fossil fuels, • decreasing pollution and greenhouse gas emissions • increasing the efficiency of energy usage, • recycling materials, and • developing and adopting renewable sources of energy

21. Recycling Industry Group Ronnie Grant, Chair 843-383-7665 ronnie.grant@sonoco.com Recycling Market Development Advisory Council Gerry Fishbeck, Chair 864-574-0904 gfishbeck@urrc.net Support Staff: Department of Commerce Chantal Fryer 803-737-0477 cfryer@sccommerce.com New Carolina George Fletcher 803-760-1400 gfletcher@newcarolina.org Recycling Resources

22. Recycling Market Development Advisory Council www.sccommerce.com/ Chantal Fryer 803-737-0477 cfryer@sccommerce.com