Content of Presentation Background

2. Successful Plasterboard Recycling In PracticeGypsum Recycling International A/S Content of Presentation • Background • 6 main differences between the traditional concept and GRI’s successful concept for plasterboard recycling • Video • Summary

3. Successful Plasterboard Recycling In PracticeGypsum Recycling International A/S Background – the beginning • Gyspum Recycling International A/S established in 2001, after 2 years of development of the system • Nowhere in Scandinavia is there a ban on landfilling of plasterboad waste • The system had to assure that recycling would be competitive with the landfilling alternative • All Scandinavian countries are relatively small markets (in absolute terms) in terms of volume • A (mobile) system capable of serving all markets had to be develop-ed as each market was too small to justify the investments it self • Company started by Karsten Rasmussen, who also owns the largest demolition company in Scandinavia • The system was developed to handle plasterboard demolition waste from the beginning

4. Successful Plasterboard Recycling In PracticeGypsum Recycling International A/S Background – the development since 2001 2001 – Denmark 2003 – Sweden 2003 – Norway 2004 – Holland 2005 (March) – Ireland 2005 (May) - UK 2005 (Oct.) – USA In total 7 countries - far more than anybody else

5. Successful Plasterboard Recycling In PracticeGypsum Recycling International A/S Background – plasterboard plants under contract Plants from all the top 5 plasterboard groups in the world are served. In total 15 different plants are under contract with GRI for the supply of recycled plasterboard waste Knauf - 2001 BPB - 2003 Lafarge - 2004 US Gypsum – 2004/5 National Gypsum – 2004/5

6. Successful Plasterboard Recycling In PracticeGypsum Recycling International A/S 6 main differences between the traditional concept and GRI’s concept for plasterboard recycling • Motive for starting plasterboard recycling up in an area • Who will initiate and have the risks • What is the key to success in plasterboard recycling • How large an area can be covered by the system • What types of plasterboard waste can be handled • How to deal with wet waste

7. Successful Plasterboard Recycling In PracticeGypsum Recycling International A/S A. Motive for starting plasterboard recycling up in an area • Before 2001 plasterboard recycling was only started up as a result of legislation = ban on landfilling of plasterboard waste • Recycling requires sorting and according to the traditional concept such sorting will only occur if people are forced to due it • According to GRI’s concept, the motive for starting up and running the recycling system is economic advantages for everybody that participates: • Lower disposal costs for the waste owners = minus 20% • Lower raw material prices for the plasterboard plants = minus 20% • Profits for the recycler • The necessary sorting is achieved by making it economic attractive to do and easy in practice

8. Successful Plasterboard Recycling In PracticeGypsum Recycling International A/S A. Motive for starting plasterboard recycling up in an area Easy sorting • Specially designed containers by GRI to allow for easy filling and easy removal of the waste/gypsum materials; equipped with lids, the top lid being hydraulic assisted. Operated from the front or from above • The containers are everywhere, where there is plasterboard waste: • at new building sites • at reconstruction and demolition sites • at waste transfer stations • at public recycling centres etc • Are sold or leased to the waste owners, and each of the 30 cubic meter containers can contain 6 tons

9. Successful Plasterboard Recycling In PracticeGypsum Recycling International A/S B. Who will initiate and have the risk • When a ban comes into effect in an area the local plasterboard plants are forced to start recycling and they typically will also have the risk • According to GRI’s concept it is the market (the waste owner, the waste industry, the plasterboard plant or the recycler) that will take the initiative voluntarily, based upon the economic advantages that can be achieved • The plasterboard plant does not have to invest nor have cost in connection with getting the system established. The deal that GRI offers include • GRI will set up and run the system • GRI will deliver the reprocessed waste as a pure gypsum powder; guaranteed quality according to agreed specifications • The plant will commit on a long term basis to acquire the powder at a price 20% below the price of other raw materials

10. Successful Plasterboard Recycling In PracticeGypsum Recycling International A/S B. Who will initiate and have the risk – customer reaction Proven concept No impurities No investments Professional Quality Satisfaction

11. Successful Plasterboard Recycling In PracticeGypsum Recycling International A/S C. What is the key to success in plasterboard recycling • According to the traditional concept two things were needed; • ban on landfilling of lasterboard waste • technology that could assure the recycling - How the waste come into the recycling facility is of little concern • According to GRI’s concept two things are needed: • Cost of landfilling must be of a certain magnitude • Obviously technology to do the recycling, but even more important a complete system that lowers the transport cost, so that recycling can compete with the landfilling alternative. Getting the waste to the recycling facility the most economical way

12. Successful Plasterboard Recycling In PracticeGypsum Recycling International A/S Focus of tradi-tional concept C. What is the key to success in Plasterboard Recycling Low transport costs Cost of waste collection and transportation Cost of waste reprocessing Focus of GRI’s concept

13. Successful Plasterboard Recycling In PracticeGypsum Recycling International A/S C. What is the key to success in plasterboard recycling • GRI’s concept is securing low transport cost by: • Special developed transportation solution, where the waste is being collected instead of the containers by special trucks, that also will weigh the waste collected at each site. This is later used for invoicing • The mobility of the recycling unit so that more warehouses can be established to which the waste can be brought

14. Successful Plasterboard Recycling In PracticeGypsum Recycling International A/S D. How large an area can be covered by the recycling system • According to the traditional concept one receiving facility is enough, as everybody due to the ban is forced to take the materials there. Without a ban such a concept would at best lead to local/ regional coverage • According to GRI’s concept one facility is far from enough; the cost of transportation would be sky high if only one facility existed. Instead a competitive recycling system must be characterised by having: • Multiple facilities/warehouses so that the waste does not have to be transported far away and so that national coverage can be secured • A mobile recycling unit that can serve several warehouses, so that each facility does not have to invest in own equipment. The unit can be dismantled and set up in a few hours

15. Successful Plasterboard Recycling In PracticeGypsum Recycling International A/S D. How large an area can be covered by the recycling system The mobility of the recycling unit secures low transport cost and national coverage Hobro (Knauf) Norway Sweden Kalundborg (BPB) Copenhagen 70 miles

16. Successful Plasterboard Recycling In PracticeGypsum Recycling International A/S E. What types of plasterboard waste can be handled • According to the traditional concept new construction has been the focus, a.o. because it has been difficult for others to develop recycling units that could also handle demolition waste • According to GRI’s concept all plasterboard waste should be recycled, no matter whether it comes from new construction, reconstruction or demolition activities. The characteristics of the unit are: • Specially designed and developed by GRI – based on patented technology • Produces recyclable gypsum powder • Effectively remove the paper linen and all contaminants from the powder • Capacity: almost 100.000 tons p.a. at full • Weighs 47 tons • 24 meters long, 3 meters wide and 4 meter high

17. Successful Plasterboard Recycling In PracticeGypsum Recycling International A/S E. What types of plasterboard waste can be handled Capable of handling new construction waste as well as demolition waste: • Acceptable: - Gypsum waste based on FGD/DSG or natural gypsum raw materials - Virgin gypsum board cut-offs - Gypsum board underlayers/dunnage - Complete boards or broken parts - Gypsum ceilings, floors, walls etc. - The gypsum waste may contain nails and screws - Wallpaper, glass tissue and other wall coverings on the gypsum boards • Non-acceptable: - Plastics and foils - Insulation materials (glass wool/stone wool/Rockwool) - Steel rails and bars - Wood - Other impurities

18. Successful Plasterboard Recycling In PracticeGypsum Recycling International A/S F. How to deal with wet waste • According to the traditional concept it is a crucial ability for a technology to be able to deal with wet waste, as the plasterboard waste inevitably will be wet at some point • According to GRI’s concept it is a mistake to design the system to allow wet waste from existing at all: • Wet waste means that the customers are paying for that water is being removed • At some point the recycler will have to take the water away, which will have a cost consequence • Instead the system should assure that the waste get wet at all: • By using covered containers • By using covered transport trucks

19. Successful Plasterboard Recycling In PracticeGypsum Recycling International A/S Video

20. Successful Plasterboard Recycling In PracticeGypsum Recycling International A/S Summary: The traditional concept versus GRI’s concept for plasterboard recycling

21. Successful Plasterboard Recycling In PracticeGypsum Recycling International A/S Summary: The traditional concept versus GRI’s concept for plasterboard recycling How does the system from GRI differ from what other suppliers can offer? • It is based on all participants achieving economic benefits, not on bans and regulations. It works because everybody gains from their participation. • It is more than just a recycling unit. It is a complete system that secures the necessary low transport cost. It has all the necessary elements; containers, logistic system, mobile recycling unit and users that can benefit from the recycled materials • The recycling unit is very mobile and compact and especially takes up limited space in the height. It hereby supports the concept of multiple small plants to secure national coverage and reduced transport cost • Besides from being mobile, the recycling unit offers the best separation of paper from the gypsum, which provides the plasterboard plants with the most pure powder allowing them to mix in up to 25% in their raw material mix

22. Successful Plasterboard Recycling In PracticeGypsum Recycling International A/S Summary - Successful plasterboard recycling by GRI Consequences for the plasterboard industry • The plasterboard industry can leave recycling of gypsum materials to competent people, who are familiar with waste collection and recycling, that has proved as the first that profitable recycling without a ban on landfilling is possible • There are no costsnor investments required for the industry to have a recycling programme established in their area • The industry will acquire the recycled materials, and by doing so the industry will take advantage of the following: • Improved environmental profile and image • An additional stable source of high quality materials • Recycled materials at a price below that of virgin materials • A co-operation with Gypsum Recycling International is a win-win situation for the plasterboard industry